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Chapter 1 Health Insurers Have Incentive Institute Plans That
66) Which of the following is an example of an activity undertaken by an entrepreneur? 66) A) landscape design for your new home B) running for the president of the United States C) starting your own pet sitting business D) […]
Chapter 1 How are the fundamental economic decisions determined
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In 2001, Hooverville consumed 205,000 tons of sugar. In 2002, sugar consumption rose to 245,000 tons. Calculate the percentage change in sugar […]
Chapter 10 Consumers benefit from monopolistic competition
94) If the painting firms in a city sign a contract outlining a pricing plan, they are involved in 94) A) a legal form of business contract in the United States. B) price competition. C) price regulation. D) collusion. 95) […]
Chapter 10 Economists agree that a monopolistically competitive
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists agree that a monopolistically competitive market structure 1) A) can eliminate any excess capacity if all firms in the industry devote […]
Chapter 10 What Area Represents The Loss Made The
Table 10–5 55) Refer to Table 10–5. Is a situation in which Coke produces a low quantity (Q) and Pepsi produces a high quantity an equilibrium? 55) A) Yes, because each is earning its highest profit. B) No, because Pepsi […]
Chapter 11 American Airlines Experienced Increase The Demand For
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The factors of production include 1) A) transfers. B) investment. C) capital. D) wages. Table 11–10 Year Oranges Produced Price of Oranges […]
Chapter 11 The value added by the automobile dealer equals
54) Which of the following is not true about the composition of U.S. GDP in 2007? 54) A) Imports are greater than exports. B) Business fixed investment is the largest component of investment. C) The majority of consumer spending is […]
Chapter 12 Your grandfather tells you that he earned
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. […]
Chapter 12 The natural rate of unemployment is the amount of
64) The natural rate of unemployment is the amount of unemployment 64) A) that exists when the economy goes into recession. B) equal to frictional plus structural unemployment. C) that exists when the economy is in an expansion. D) associated […]
Chapter 13 In a closed economy public saving plus private saving
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Technological advances generally result in 1) A) increased life expectancy. B) decreased incomes. C) increased infant mortality rates. D) increased average number […]
Chapter 13 What is investment in a closed economy if you
61) What is investment in a closed economy if you have the following economic data? Y = $10 trillion C = $5 trillion TR = $2 trillion G = $2 trillion 61) A) $3 trillion B) $5 trillion C) $2 […]
Chapter 14 Dollar bills in the modern economy serve as money
65) If technological change occurs in the economy, 65) A) we will move up along the long–run aggregate supply curve. B) the long–run aggregate supply curve will shift to the left. C) we will move down along the long–run aggregate […]
Chapter 14 This Change The Value The Dollar Will
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An increase in the price level will 1) A) move the economy down along a stationary aggregate demand curve. B) shift the […]
Chapter 15 According to the quantity theory of money the inflation
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Dollar bills in the modern economy serve as money because 1) A) people have confidence that others will accept them as money. […]
Chapter 15 How The Quantity Theory Money Different From
60) The purchase of $1 million of Treasury securities by the Federal Reserve, if there is no change in the quantity of currency, will cause reserves at banks to 60) A) increase by less than $1 million. B) decrease by […]
Chapter 16 The Federal Reserve does not target both the money
Figure 16–4 62) Refer to Figure 16–4. Suppose the Fed sells Treasury Bills in pursuit of contractionary monetary policy. Using the static AD–AS model in the figure above, this situation would be depicted as a movement from 62) A) A […]
Chapter 16 The Federal Reserve’s two main monetary policy targets
93) The Federal Reserve’s two main monetary policy targets are 93) A) price stability and the money supply. B) interest rates and high employment. C) the money supply and interest rates. D) price stability and high employment. 94) Monetary policy […]
Chapter 16 The top policy goal for Paul Volker when he became
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The top policy goal for Paul Volker when he became chairman of the Federal Reserve’s Board of Governors in 1979 was 1) […]
Chapter 17 Economists refer to the series of induced increases
57) Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect. 57) A) expenditure B) consumption C) aggregate demand D) multiplier 58) The aggregate demand curve […]
Chapter 17 The aggregate demand curve will shift to the right
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The aggregate demand curve will shift to the right ________ the initial decrease in taxes. 1) A) by more than B) by […]
Chapter 18 Costa Rica is a leading exporter of bananas
102) In 1930 the U.S. government attempted to help domestic firms that were harmed by the Great Depression by 102) A) establishing the World Trade Organization (WTO). B) passing the North American Free Trade Agreement (NAFTA). C) establishing the General […]
Chapter 18 Many South Koreans Used The Trade Agreement
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) NAFTA refers to a 1994 agreement that eliminated most tariffs among which countries? 1) A) the United States, the United Kingdom and […]
Chapter 18 The North American Free Trade Agreement
Figure 18–3 Since 1953 the U.S. has imposed a quota to limit the imports of peanuts. Figure 18–3 illustrates the impact of the quota. 60) Refer to Figure 18–3. What is the area that represents revenue to foreign producers who […]
Chapter 2 According to the production possibilities frontier
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) According to the production possibilities frontier model, if more resources are allocated to the production of physical and human capital, then all […]
Chapter 2 China And South Korea a Which Country Has
92) An example of a factor of production is 92) A) the automobiles exported by an auto manufacturer. B) a loan granted to an auto manufacturer. C) a worker hired by an auto manufacturer. D) a car produced by an […]
Chapter 2 Economic growth is represented on a production
54) Consider the following items: a. the novel The DaVinci Code by Dan Brown b. the “The Spirited Shipper”, an innovative wine shipping box c. a Swiss chef‘s award–winning recipe d. an original fabric design, for example, the fabric used […]
Chapter 3 Apple makes little profit from each song downloaded
59) Although it is a popular product, Apple makes little profit from each song downloaded through iTunes. Why does Apple charge only $0.99 to download a song? 59) A) Apple cannot raise the price above $0.99 per song because consumers […]
Chapter 3 Refer Figure The Graph This Figure Illustrates
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in […]
Chapter 3 Which panel best describes what happens in this market
Figure 3-5 92) Refer to Figure 3–5. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. What panel describes what happens in this market when the price […]
Chapter 4 What area represents the portion of consumer surplus
Figure 4–12 Figure 4–12 shows a market with a negative externality. 39) Refer to Figure 4–12. The efficient output level is 39) A) Qa. B) Qd. C) Qb– Qd. D) Qb. 40) Which of the following is an example of […]
Chapter 4 What is the area that represents the producer
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Figure 4–6 Figure 4–6 shows the market for apartments in Bay City. Recently, the government imposed a rent ceiling at R0. 1) Refer […]
Chapter 4 What is the rationale behind a tradable emissions
89) In order to be binding a price floor 89) A) must lie below the free market equilibrium price. B) must coincide with the free market equilibrium price. C) must be high enough for firms to earn a profit. D) […]
Chapter 4 Which of the following conditions holds in an economically
134) What does the phrase “internalizing an external cost” mean? 134) A) limiting the extent to which domestic firms can outsource production B) prohibiting economic activities that create externalities C) finding a way to address cross–border pollution D) forcing producers […]
Chapter 5 Carmen Should Realize That Profits The Partnership
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is an example of an implicit cost a firm might incur? 1) A) the rental value of the […]
Chapter 5 Which of the following is an advantage of starting
51) Which of the following is an advantage of starting a new business as a corporation? 51) A) ability to share work B) double taxation of income C) low cost to organize D) greater ability to raise funds 52) In […]
Chapter 6 Behavioral economics refers to the study of situation
Table 6–2 Quantity of Soup (cups) Total Utility Quantity of Sandwiches Total Utility 140 145 260 275 372 3102 482 4120 588 5135 690 6145 Table 6–2 shows Keira‘s utility from soup and sandwiches. The price of soup is $2 […]
Chapter 6 Netflix Invite Their Consumers Write Reviews About their
75) If the market for a product is broadly defined, then 75) A) the good has many complements. B) there are few substitutes for the product and the demand for the product is relatively inelastic. C) the expenditure on the […]
Chapter 6 What is Keegan’s optimal consumption bundle
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Table 6–1 Quantity of Pita Wraps Total Utility Quantity of Bubble Tea Total Utility 160 140 2102 270 3132 391 4144 4106 5144 […]
Chapter 7 Golda Rush quit her job as a buyer for Home
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose you have just opened a store to sell espresso machines. Both you and a competing store buy this machine from a […]
Chapter 7 In a diagram that shows the marginal product of
53) If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm’s total variable cost at that level of output is 53) A) $1,000. B) $700. C) $300. D) impossible to […]
Chapter 8 Both buyers and sellers are price takers
Figure 8–4 Figure 8–4 shows the cost and demand curves for a profit–maximizing firm in a perfectly competitive market. 83) Refer to Figure 8–4. If the market price is $30, should the firm represented in the diagram continue to stay […]
Chapter 8 president of retail consulting group Customer Growth
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is productive efficiency? 1) A) A situation in which resources are allocated to their highest profit use. B) A situation in […]
Chapter 8 The Price The Good 60 Now Suppose
Figure 8–7 48) Refer to Figure 8–7. If this is a constant cost industry, what is the market price in the long run equilibrium? 48) A) $20 B) $14 C) $5 D) $15 49) Refer to Figure 8–7. Suppose the […]
Chapter 9 Peet’s Coffee and Teas produces some flavorful
Figure 9–1 Figure 9–1 above shows the demand and cost curves facing a monopolist. 76) Refer to Figure 9–1. The firm’s profit maximizing price is 76) A) P1. B) P2. C) P3. D) P4. 77) What is a network externality? […]
Chapter 9 Which of the following statements is consistent
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Figure 9–3 Figure 9–3 shows the demand and cost curves for a monopolist. 1) Refer to Figure 9–3. What is likely to happen […]
Chapter 9 A merger between U.S. Steel and General Motors
47) A merger between U.S. Steel and General Motors would be an example of a 47) A) horizontal merger. B) vertical merger. C) conglomerate merger. D) conspiracy in restraint of trade. Figure 9–3 Figure 9–3 shows the demand and cost […]