Economics Today 16th Edition

ISBN 13
978-0132786164
ISBN 10
0132786168
Authors
Roger LeRoy Miller
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147 documents found.
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Exam Prep
Economics Chapter 1 Appendix Direct And Inverse
72 Miller Economics Today, 16th Edition 43) Which one of the following is an example of a normative statement? A) Public school teachers are not paid enough. B) The average public school teacher earns less than the average truck driver. C) The average public school teacher earns more than the average truck driver. D) Students
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Economics Chapter 1 Economics Science Analytic Skills Question
Chapter 1 The Nature of Economics 41 3) Economics is an empirical science, which means that economists A) must use laboratory experiments to test their theories. B) evaluate a model or theory by whether its assumptions are consistent with the real world. C) try to prove their models are true by referring to logic. D)
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Economics Chapter 1 Ethical Understanding And Reasoning Abilities Question Status Previous
Chapter 1 The Nature of Economics 61 85) The combination of psychology and economics to determine individual decision making is known as A) b ehavioral economics. B) pyschomics. C) the rule of thumb. D) positive analysis. 86) The idea of bounded rationality is used to address all of the following characteristics EXCEPT A) unbounded selfishness. B) unbounded knowledge. C)
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Economics Chapter 1 Mart The Economy Unemployment Level The Cost
Chapter 1 The Nature of Economics 1.1 The Power of Economic Analysis 1) The economic way of thinking will help you A) make decisions in financing your home. B) decide whether the U.S. government should encourage or discourage immigration. C) make better decisions concerning your education. D) all of the above 2) Economic analysis is used A) only in
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Economics Chapter 1 The Economic Approach Systematic
Chapter 1 The Nature of Economics 21 84) An example of a microeconomic decision is a situation in which A) the Federal Reserve considers how much to increase the money supply during the coming month in an effort to constrain the rate of inflation. B) Congress and the president seek to reach a compromise
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Economics Chapter 10 Shifts The Aggregate Demand
304 Miller Economics Today, 16th Edition 81) The aggregate demand curve shows A) a direct relationship between changes in the price level and changes in real GDP. B) real GDP does not change as the price level changes. C) an inverse relationship between the price level and real GDP. D) an inverse relationship between changes
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Economics Chapter 10 Status Previous Edition3 There Are Steady Decreases
322 Miller Economics Today, 16th Edition 15) When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve, A) there will be no price level change. B) there will be pressures that will lead to a shift of either the aggregate demand or the
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Economics Chapter 10 The Above Figure Shows Aa Short Run
Chapter 10 Real GDP and the Price Level in the Long Run 10.1 Output Growth and the Long Run Aggregate Supply Curve 1) The aggregate supply curve A) shows what each producer is willing and able to produce at each income level. B) relates planned aggregate production to price level. C) b ecomes vertical if there is excess
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Economics Chapter 10 Total Expenditures And Aggregate
284 Miller Economics Today, 16th Edition 7) The sum of all planned expenditures for the entire economy at each possible price level is A) aggregate supply. B) effective demand. C) aggregate demand. D) actual expenditures by consumers. 8) The aggregate demand curve plots A) desired expenditures against production. B) total expenditures against the level of employment. C)
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Economics Chapter 11 Explaining Short Run Variations
Chapter 11 Classical and Keynesian Macro Analyses 417 37) If the U.S. government were to relax its restrictions on offshore oil well drilling and open drilling in Alaskan national parks, the result to aggregate supply would be to A) cause a shift in the SRAS to the left. B) cause a shift in the
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Economics Chapter 11 Gross Domestic Product Gdp Greater Than Full Employment
Chapter 11 Classical and Keynesian Macro Analyses 399 22) According to the above figure, what will the price level be in the new long run equilibrium? A) 115 B) 110 C) 100 D) Less than 100 23) What is the shape of the modern short run aggregate supply (SRAS) curve? Why? Answer: The short
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Economics Chapter 11 Higher Unemployment Tends To Be Associated With
Chapter 11 Classical and Keynesian Macro Analyses 359 86) Saving is not a problem in the classical model because A) the classical economists assume that saving was beneficial to people for retirement. B) saving would be spent by consumers eventually. C) interest rates are flexible, and savings were channeled into investment. D) savers and investors
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Economics Chapter 11 Status Revised 59 Refer The Above Figure Which
Chapter 11 Classical and Keynesian Macro Analyses 379 21) Keynes suggested that the short run aggregate supply (SRAS) curve A) is vertical. B) is horizontal. C) slopes downward. D) is not a relevant concept. 22) Keynesian economics predicts that if government policy makers deem current equilibrium real Gross Domestic Product (GDP) to be too low,
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Economics Chapter 11 The Classical Modela Analytic
Chapter 11 Classical and Keynesian Macro Analyses 11.1 The Classical Model 1) Whom among the following was a classical economist? A) Adam Smith B) A. C. Pigou C) David Ricardo D) all of the above 2) All of the following were classical economists EXCEPT A) Adam Smith B) A. C. Pigou C) David Ricardo D) J ohn Maynard Keynes. Answer: D Diff:
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Economics Chapter 12 For Investment Take Place There Must Saving Diff
Chapter 12 Consumption, Real GDP, and the Multiplier 12.1 Some Simplifying Assumptions in a Keynesian Model 1) Which of the following is NOT a simplifying assumption in the simple Keynesian model? A) Net investment and gross investment are equal. B) All profits are distributed to the business owners. C) Real disposable income equals government purchases of
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Economics Chapter 12 Gdp And Increase The Multiplier Increase Equilibrium
Chapter 12 Consumption, Real GDP, and the Multiplier 531 13) If the multiplier is 4, the marginal propensity to consume (MPC) must be A) 0.25. B) 0.5. C) 0.75. D) 1. 14) The multiplier effect tends to A) generate instability. B) promote stability of the general price level. C) magnify small changes in spending into much
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Economics Chapter 12 Gross Domestic Product Gdp For Which Real
Chapter 12 Consumption, Real GDP, and the Multiplier 495 8) In the Keynesian model, planned investment is inversely related to A) the interest rate. B) the level of income. C) the wage rate. D) the tax rate. 9) If business executives become more optimistic about the future, we would expect that A) the investment curve
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Economics Chapter 12 Keynes The Primary Determinant Person Saving Isa
Chapter 12 Consumption, Real GDP, and the Multiplier 455 43) According to the above figure, autonomous consumption equals A) $0. B) $5,000. C) $20,000. D) $5,000. 44) Refer to the above figure. If real disposable income is less than $5,000, then saving is A) 0. B) negative. C) positive. D) none of the above: cannot be determined
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Economics Chapter 12 Keynesian Equilibrium With Government
Chapter 12 Consumption, Real GDP, and the Multiplier 515 36) Suppose autonomous consumption is $1 trillion, investment spending is $1.5 trillion, and the marginal propensity to consume is 0.75. Show the graph for the C I curve. What is the equilibrium level of real GDP? Explain its meaning. Copyright © 2012 Pearson Education, Inc. Answer:
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Economics Chapter 13 Fiscal Policy 6038 The United States
Chapter 13 Fiscal Policy 603 8) In the United States economy, the progressive income tax and unemployment compensation are both A) destabilizers. B) discretionary presidential effectors. C) automatic stabilizers. D) time lag factors. 9) Refer to the above figure. As the real national income expands from Y 2to Y3 , A) a budget surplus occurs. B) a
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Economics Chapter 13 Policy 5954 The Time Required Collect Information
586 Miller Economics Today, 16th Edition 69) Supply side economists argue cuts in tax rates A) always reduce tax revenues. B) may increase tax revenues. C) always increase budget deficits. D) have no effect on tax revenues. 70) The notion that a decline in tax rates and other incentives will spur individuals and firms
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Economics Chapter 13 Reduce Government Spending Get The Economy
Chapter 13 Fiscal Policy 13.1 Discretionary Fiscal Policy 1) When the government deliberately alters its level of spending and/or taxes in order to achieve specific national economic goals, it is exercising A) monetary policy. B) discretionary fiscal policy. C) a Ricardian policy. D) a laissez faire policy. 2) Which of the following is an example of fiscal
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Economics Chapter 13 The Magnitude The Effect
566 Miller Economics Today, 16th Edition 74) Which of the following statements about fiscal policy is true? A) Real Gross Domestic Product (GDP) can be increased above its long run equilibrium only in the short run. B) Real Gross Domestic Product (GDP) can never be increased above its long run equilibrium, even for a brief
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Economics Chapter 14 Deficit Spending And The Public Debt 141
Chapter 14 Deficit Spending and the Public Debt 14.1 Public Deficits and Debts: Flows versus Stocks 1) In the current year, a nation s government spending equals $1.5 trillion and its revenues are $1.9 trillion. Which of the following is true? A) The nation s national debt equals $0.4 trillion. B) This nation has a current
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Economics Chapter 14 If The Net Public Debt Declined Last Year
Chapter 14 Deficit Spending and the Public Debt 637 29) Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4? A) 5.8 percent B) 7.8 percent C) 3.6 percent D) 2.0 percent 30) Suppose that initially there is no
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Economics Chapter 15 Financial Intermediation And Banks
Chapter 15 Money, Banking, and Central Banking 695 42) If the transactions approach to measuring money is used, then the money supply consists of A) currency only. B) transaction deposits only. C) currency and transaction deposits only. D) currency, checkable and debitable deposits, and traveler s checks. 43) Which of the following is NOT included in
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Economics Chapter 15 Properties Money Analytic Skills Question
Chapter 15 Money, Banking, and Central Banking 675 16) Checkable and debitable accounts in commercial banks and other financial institutions are classified as money because A) they are not liabilities of the banks. B) they sometimes earn an interest income for the depositor. C) they are generally acceptable in the payment of debt. D) b anks hold currency
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Economics Chapter 15 Since The Reserve Ratio Less Than One The
Chapter 15 Money, Banking, and Central Banking 753 105) The reserve ratio is 10 percent. Depositors regularly keep 10 percent of their deposits as cash. If the Fed buys $1 million of U.S. government securities, excess reserves A) increase by $800,000. B) increase by $810,000. C) increase by $900,000. D) increase by $1 million. 106)
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Economics Chapter 15 The Functions Money Analytic
Chapter 15 Money, Banking, and Central Banking 15.1 The Functions of Money 1) In a barter system, we would expect to see A) many different units of money. B) money and goods exchanged for each other. C) wide spread financial institutions. D) goods traded directly for other goods and services. 2) Money functions as a(n) A) store of value.
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Economics Chapter 16 How The Fed Influences
790 Miller Economics Today, 16th Edition 88) Travis always carries $100 in his wallet to pay for groceries. This is an example of the A) precautionary demand for money. B) asset demand for money. C) transactions demand for money. D) wealth demand for money. 89) Bertha holds some of her savings as currency and
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Economics Chapter 16 Open Economy Transmission Monetary
810 Miller Economics Today, 16th Edition 23) Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short run equilibrium is given by point A) A. B) B. C) C. D) D. 24) Refer to the above figure. Suppose point A
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Economics Chapter 16 Policy Currently Implemented Question Status Revised 37 Operations The
848 Miller Economics Today, 16th Edition 43) Suppose there is an increase in the money supply, but that people s demand for money balances increases by a greater amount at the same time. The net effect would be A) a lower price level in the long run. B) no change in aggregate demand or
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Economics Chapter 16 The Demand For Money
Chapter 16 Domestic and International Dimensions of Monetary Policy 16.1 The Demand for Money 1) What are the two features of money that distinguish it from all other goods in the economy? A) Money is government issued and it is redeemable for gold or silver. B) Money is accepted as a medium of exchange and
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Economics Chapter 16 The Quantity Theory Of Money
830 Miller Economics Today, 16th Edition 34) According to the quantity theory of money and prices, a 10 percent increase in the money supply ultimately leads to A) a 10 percent increase in real GDP. B) a 10 percent increase in real national output. C) a 10 percent increase in the price level. D) a 10
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Economics Chapter 17 Analytic Skills Question Status Previous Edition14 Plot Points
942 Miller Economics Today, 16th Edition 19) If the price of bubble gum changed in the market from 1 cent to 1.5 cents and Joe s Market didn t change the price it charges for the bubble gum, this behavior is likely due to A) discretionary policy. B) economic laziness. C) large menu costs.
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Economics Chapter 17 Proponents Of Passive Policy Making Believe That
Chapter 17 Stabilization in an Integrated World Economy 17.1 Active versus Passive Policymaking 1) Active policy making refers to A) actions taken by policy makers in response to or in anticipation of some change in the overall economy. B) policy making that is carried out in response to a rule. C) relying on policies that act as
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Economics Chapter 17 Rational Expectations, The Policy Irrelevance Proposition
926 Miller Economics Today, 16th Edition 67) Adding the assumption of pure competition and complete flexibility of all prices and wages to the rational expectations hypothesis yields a theory that provides support for A) passive policy making. B) active policy making. C) discretionary policy making. D) unemployment reducing policy making. 68) The proposition that policy actions have
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Economics Chapter 17 The Natural Rate Unemployment
886 Miller Economics Today, 16th Edition 55) We observe the duration of unemployment falling and wage rates rising. It is likely that A) the government has initiated expansionary fiscal policy but the policies haven t taken effect yet. B) summer has arrived. C) aggregate demand has increased. D) aggregate supply has increased. 56) Suppose the government abolished
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Economics Chapter 18 Gdp Wasa 100 Percent B 100 Percentc 075
Chapter 18 Policies and Prospects for Global Economic Growth 18.1 Labor Resources and Economic Growth 1) According to the text, population growth in many poor countries does not generally result in increased labor resources because A) many people do not join the labor force. B) many people join the labor force. C) many people work two
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Economics Chapter 18 Growth Dynamics The Global Economy Question Status Previous
Chapter 18 Policies and Prospects for Global Economic Growth 993 15) Which of the following is NOT a criticism that has been leveled at the World Bank? A) Too many loans go to nations capable of privately financing their projects. B) Since 1990, the World Bank has loaned mostly to African countries, to
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Economics Chapter 18 Status Previous Edition 30 For Foreign Direct Investment
Chapter 18 Policies and Prospects for Global Economic Growth 977 33) Explain the meaning of the term dead capital , and discuss why its existence retards economic growth. 34) Define what dead capital is and why economists are concerned with its existence. Answer: Dead capital is when capital resources lack a clear title of ownership. Dead
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Economics Chapter 19 An Inferior Good Has An Income Elasticity
78 Miller Economics Today, 16th Edition 14) The responsiveness of demand to changes in income holding the good s relative price constant is A) price elasticity of demand. B) income elasticity of demand. C) elasticity of supply. D) cross price elasticity of demand. 15) The difference between price elasticity of demand and income elasticity
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Economics Chapter 19 Demand And Supply Elasticity 2114 One
Chapter 19 Demand and Supply Elasticity 21 14) If a one percent increase in the price of bananas leads to a one percent decrease in the quantity of bananas demanded, then the demand for bananas is A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. 15) A perfectly horizontal demand curve has A) zero elasticity.
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Economics Chapter 19 Elasticity Analytic Skills Question Status Previous Edition44 Relative
Chapter 19 Demand and Supply Elasticity 19.1 Price Elasticity 1) The price elasticity of demand is a measure of A) the responsiveness of the quantity demanded of a good to a changes in the price of the good. B) the quantity demanded of a good at a given price. C) the demand for a product holding prices
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Economics Chapter 19 Elasticity And Total Revenues Analytic Skills Question Status
Chapter 19 Demand and Supply Elasticity 41 29) In the above figure, along the section of the demand curve between point a and point b, demand is A) elastic. B) inelastic. C) unit elastic. D) unit inelastic. 30) In the above figure, the range of unit elasticity occurs A) on the vertical axis. B) on
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Economics Chapter 19 Suppose The Price Rises From 18 20
Chapter 19 Demand and Supply Elasticity 61 45) In which of the following situations is the absolute price elasticity of demand for an item most likely to exceed a value of 1? A) when there are very few close substitutes for the item B) when there are very few producers of the item C) when
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Economics Chapter 2 All The Above Are Correct Answer 
142 Miller Economics Today, 16th Edition 51) A point inside a production possibilities curve indicates A) resources are not being used efficiently. B) resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels 52) A point on a production possibilities curve indicates A)
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Economics Chapter 2 Scarcity And Shortages Differ Thata Scarcity
Chapter 2 Scarcity and the World of Trade Offs 2.1 Scarcity 1) Scarcity arises because A) resources are finite and are inadequate to meet all human wants and needs. B) import taxes depress the rate of growth of goods and services production. C) international companies are slow to explore for new resources. D) many countries waste goods
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Economics Chapter 2 Scarcity Choice And Opportunity
102 Miller Economics Today, 16th Edition 92) Briefly explain the factors of production and give an example of each. 93) Explain why even the most affluent people, businesses and counties never solve the problem of scarcity. Answer: Scarcity is a problem that is never completely solved. Scarcity means that we do not ever have enough
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Economics Chapter 2 Specialization And Greater Productivities Analytic Skills Question
176 Miller Economics Today, 16th Edition 22) Suppose that at a bicycle shop, instead of having each worker assemble an entire bicycle themselves, one person welds the frames, another person works on the braking system, another person works on the tires, and another person works on the gears. This best demonstrates the concept of A)
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Economics Chapter 2 The Choices Society Faces
122 Miller Economics Today, 16th Edition 23) The curve that represents all possible combinations of goods that can be produced is called A) the production possibilities curve. B) the resource allocation curve. C) the efficiency curve. D) the supply curve. 24) Refer to the above figure. A farmer has 50 acres of land on
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Economics Chapter 2 The Demand Curve Monopolist
530 Miller Economics Today, 16th Edition 10) A major difference between a monopolist and a perfectly competitive firm is that A) the monopolist is certain to earn economic profits. B) the monopolist s marginal revenue curve lies below its demand curve. C) the monopolist engages in marginal cost pricing. D) the monopolist charges the highest
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Economics Chapter 2 If An Economy Produces Only Steel And Wheat
162 Miller Economics Today, 16th Edition 7) How is economic growth shown by the production possibilities curve? A) By shifting the curve to the right. B) By moving the curve to the left. C) By moving up the existing curve. D) By changing the shape of the curve from a straight line to one that
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Economics Chapter 20 After 2c After 10d After 15 Answer 
Chapter 20 Consumer Choice 115 92) What is utility analysis? What is the goal of this analysis? 93) What do we know about total utility when marginal utility is zero? Answer: Marginal utility is the extra utility from consuming another unit of a good. If marginal utility is 0, total utility does not increase
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Economics Chapter 20 Appendix Being Indifferent Question Status
Chapter 20 Consumer Choice 175 2) According to the substitution effect, if the price of a product goes down A) the consumer will buy more of the good at the lower price than at a higher price, creating a downward sloping demand curve. B) the consumer will buy more of the good at a
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Economics Chapter 20 Choice 20313 Refer The Above Figure Given
194 Miller Economics Today, 16th Edition 11) Suppose that indifference curve I1lies to the left of indifference curve I2. We can conclude that A) some, but not all, points on indifference curve I1will correspond to higher utility than points along indifference curve I2. B) some, but not all, points on indifference curve I1will correspond
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Economics Chapter 20 In Economics, Utility Is Defined As
Chapter 20 Consumer Choice 20.1 Utility Theory 1) In economics, another term for satisfaction is A) income elasticity. B) price elasticity. C) utility. D) marginal productivity. 2) The amount of pleasure or satisfaction derived from consumption of a good is called A) elasticity. B) utility. C) consumer surplus. D) demand. Answer: B Diff: 1 Topic: 20.1 Utility Theory Question Status: Previous Edition 3)
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Economics Chapter 20 Optimizing Consumption Choices Analytic
Chapter 20 Consumer Choice 135 48) J ill likes lobsters but she does not eat lobsters in every meal. How can utility theory explain this? 20.4 Optimizing Consumption Choices 1) In order to maximize utility, a consumer should allocate money income so that A) the marginal utility of the last unit of each product consumed is
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Economics Chapter 21 Do You Agree Or Disagree?
Chapter 21 Rents, Profits, and the Financial Environment of Business 273 194) What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain. 195) Why is limited liability so important when firms try to raise large amounts of financial
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Economics Chapter 21 Economic Rent Analytic Skills Question
Chapter 21 Rents, Profits, and the Financial Environment of Business 21.1 Economic Rent 1) Pure economic rent is A) a payment to a resource owner over and above what is necessary to keep the resource in its current use. B) a payment to a resource owner just sufficient to keep its supply constant. C) the inverse of
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Economics Chapter 21 Firms And Profits Analytic
Chapter 21 Rents, Profits, and the Financial Environment of Business 233 6) Accounting profit can be calculated as A) total revenue explicit costs. B) total revenue implicit costs. C) total revenue explicit costs implicit costs. D) total revenue fixed costs. 7) Which of the following participants in the working of a firm are referred to as
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Economics Chapter 21 People Base Their Decisions On Borrowing
292 Miller Economics Today, 16th Edition 83) Present value is A) unrelated to the rate of interest. B) lower the longer the time horizon. C) not expressed in today s dollars. D) opposite the time value of money. 84) The real interest rate is the A) nominal interest rate plus the anticipated interest rate. B) nominal
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Economics Chapter 21 Topic 212 Firms And Profits Question Status
Chapter 21 Rents, Profits, and the Financial Environment of Business 253 99) All of the following are characteristics of a proprietorship EXCEPT A) the business is owned by one individual. B) one person is responsible for all the debts of the firm. C) one person gets all of the profits. D) the firm can form
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Economics Chapter 22 Diminishing Marginal Product Analytic
Chapter 22 The Firm: Cost and Output Determination 331 55) As the amount of a variable input increases, while all other inputs are held constant, total product will A) always increase. B) always decrease. C) initially decrease and then increase. D) initially increase and then decrease. 56) If the average product of 20 workers is
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Economics Chapter 22 Status Previous Edition36 Decrease The Long Run
386 Miller Economics Today, 16th Edition 6) In the above figure, the long run cost curve between points C and D illustrates A) diseconomies of scale. B) diminishing marginal product. C) constant returns to scale. D) economies of scale. 7) In the above figure, the long run cost curve between points E and F
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Economics Chapter 22 The Relationship Between Diminishing
Chapter 22 The Firm: Cost and Output Determination 371 113) In the above table, what is the average total cost to produce 3 units of output? A) $33.33 B) $53.33 C) $55 D) $20 114) Which of the following statements regarding the relationship between average and marginal costs is INCORRECT? A) There is always a
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Economics Chapter 22 The Relationship Between Output
Chapter 22 The Firm: Cost and Output Determination 22.1 Short Run versus Long Run 1) Economists generally define the short run as being A) that period of time in which at least one of the firm s inputs, usually plant size, is fixed. B) that period of time in which all inputs are variable. C) any
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Economics Chapter 22 Use The Above Figure The Afc Output
Chapter 22 The Firm: Cost and Output Determination 351 Q TFC TVC TC 0 $90 $ 0 $ 90 1 90 25 115 2 90 32 122 3 90 42 132 4 90 64 154 5 90 95 185 19) Refer to the above table. At an output of 4 units, average variable costs are A) $16. B) $22.
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Economics Chapter 23 A Firm Will Shut Down In The Short Run When
460 Miller Economics Today, 16th Edition 35) A firm should never produce any output if A) P AVC. B) P ATC. C) AR ATC. D) MR MC. 36) A firm earning economic losses should operate in the short run as long as A) the price per unit sold is greater than the average fixed
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Economics Chapter 23 Determine The Profit Maximizing Rate Production Analytic
420 Miller Economics Today, 16th Edition 12) A firm in a perfectly competitive market maximizes profits when it finds A) the price at which total revenue minus total cost is the greatest. B) the quantity at which total revenue minus total cost is the greatest. C) the quantity at which total revenue equals total
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Economics Chapter 23 For Perfectly Competitive Firm Its Long Run
Chapter 23 Perfect Competition 495 58) If the costs of production do not increase as output increases in the long run in a perfectly competitive industry, then this is a A) constant return to scale industry. B) constant competitive industry. C) constant cost industry. D) constant price industry. 59) The long run supply curve in
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Economics Chapter 23 Short Run Profits Analytic Skills Question Status Previous
440 Miller Economics Today, 16th Edition 53) What does a perfectly competitive firm do to maximize profits? 54) Why should a perfect competitor produce at which price equals marginal cost? Answer: For a perfect competitor, its market price equals marginal revenue. Because profits are maximized when marginal revenue equals marginal cost, a perfect competitor
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Economics Chapter 23 The Firms In The Industry Produce A Homogeneous Product
Chapter 23 Perfect Competition 23.1 Characteristics of a Perfectly Competitive Market Structure 1) Which of the following is NOT a characteristic of a perfectly competitive market? A) The products sold by the firms in the market are homogeneous. B) There are many buyers and sellers in the market. C) It is difficult for a firm to
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Economics Chapter 23 The Long Run Industry
480 Miller Economics Today, 16th Edition 9) Using a graph, show a short run equilibrium for the industry and the firm. Explain the graph. 23.9 The Long Run Industry Situation: Exit and Entry 1) Market signals A) are ways of conveying information. B) do not involve economic profits. C) are best ignored by investors. D)
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Economics Chapter 24 Monopolist Produces Point Which Marginal
550 Miller Economics Today, 16th Edition 11) In the above figure, the total cost of producing the profit maximizing level of output is shown by rectangle A) 0P1AQ1. B) 0P5EQ5. C) 0P4HQ4. D) 0P2BQ1. 12) In the above figure, suppose the monopolist is producing at Q3. The firm should A) increase output and decrease price.
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Economics Chapter 24 The Social Cost Monopolies
590 Miller Economics Today, 16th Edition 36) Selling a product at different prices when the price difference is unrelated to costs is a practice known as A) price fixing. B) price monopolization. C) price discrimination. D) price differentiation. 37) Price discrimination exists when A) a firm charges different buyers different prices for its product but the
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Exam Prep
Economics Chapter 24 Which The Following Not Restriction The
Chapter 24 Monopoly 24.1 Definition of a Monopolist 1) Monopoly producers face A) many competitors producing the same product. B) only a few competitors producing the same product. C) at least one competitive producer of the same product. D) no competitive producers of the same product. 2) Which of the following is a characteristic of a monopoly market? A)
Economics Today 16th Edition
707180
Exam Prep
Economics Chapter 25 Monopolistic Competition Question Status Previous
Chapter 25 Monopolistic Competition 25.1 Monopolistic Competition 1) Which of the following is NOT a characteristic of monopolistic competition? A) Product differentiation B) Barriers to entry into the market C) Advertising D) A significant number of sellers 2) Which of the following is a characteristic of monopolistic competition? A) Few firms B) Homogeneous products C) Easy entry and
Economics Today 16th Edition
707181
Exam Prep
Economics Chapter 25 Price And Output For The Monopolistic Competitor
Chapter 25 Monopolistic Competition 629 14) In the above figure, the monopolistically competitive firm s profit maximizing output is A) 1,000 units. B) 300 units. C) 900 units. D) 700 units. 15) In the above figure, when this monopolistically competitive firm produces its profit maximizing output, it sets a per unit price of A) $13.
Economics Today 16th Edition
707182
Exam Prep
Economics Chapter 25 The Type Of Advertising That Is
668 Miller Economics Today, 16th Edition 26) A good that people must actually consume before they can determine qualities is called A) a credence good. B) a search good. C) an experience good. D) a persuasive good. 27) An experience good is a product A) with qualities that consumers lack the expertise to assess without
Economics Today 16th Edition
707187
Exam Prep
Economics Chapter 26 Both Firm And Firm Choose Not Advertiseb
706 Miller Economics Today, 16th Edition 94) The number of firms in an oligopolistic industry A) must be less than 10. B) must be less than 20. C) must be small enough that firms are interdependent. D) must be large enough for firms to be independent. 95) The outputs of an oligopolistic industry A) can be homogeneous
Economics Today 16th Edition
707185
Exam Prep
Economics Chapter 26 Oligopoly Question Status Previous 
Chapter 26 Oligopoly and Strategic Behavior 26.1 Oligopoly 1) Which of the following does NOT help explain why oligopolies exist? A) Economies of scale B) Mergers C) Product homogeneity D) Barriers to entry 2) Which of the following is a characteristic of oligopoly? A) Easy entry and exit B) Many firms C) Strategic dependence D) None of the
Economics Today 16th Edition
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Exam Prep
Economics Chapter 26 Status Previous Edition 29 According The Textbook What
Chapter 26 Oligopoly and Strategic Behavior 743 6) A Battle of the Sexes outcome occurs when A) firms earn highest profits by adopting different product formats. B) firms earn highest profits by trying to coordinate but cannot agree on how to do so. C) firms earn highest profits by adopting either male or female
Economics Today 16th Edition
707188
Exam Prep
Economics Chapter 26 The Cooperative Game Collusive
726 Miller Economics Today, 16th Edition 65) A game in which any gains one player makes are offset by equal losses by another player is known as a A) zero sum game. B) positive sum game. C) negative sum game. D) cooperative game. 66) A game in which players collectively lose is known as a A)
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707194
Exam Prep
Economics Chapter 27 Antitrust Policy Globalized Economy 79179 The Difference
780 Miller Economics Today, 16th Edition 39) Refer to the above figure. If the government uses rate of return regulation for the natural monopolist, the firm will charge price A) P5and sell Q1units. B) P2and sell Q1units. C) P3and sell Q3units. D) P1and sell Q4units. 40) Refer to the above figure. Suppose the government requires
Economics Today 16th Edition
707197
Exam Prep
Economics Chapter 27 European Union Answer Antitrust Policy Question
Chapter 27 Regulation and Antitrust Policy in a Globalized Economy 817 19) Which of the following is exempt from antitrust laws? A) Professional football B) Petroleum companies C) Airlines D) Hospitals 20) Which of the following is exempt from antitrust laws? A) Professional basketball B) Suppliers of military equipment C) Telephone companies D) Automobile companies Answer: B Diff:
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707192
Exam Prep
Economics Chapter 27 Forms Industry Regulation Analytic Skills Question Status Previous
Chapter 27 Regulation and Antitrust Policy in a Globalized Economy 27.1 Forms of Industry Regulation 1) U.S. government regulation of social and economic activity A) only began after World War II. B) costs less now than it did in the 1980s. C) has increased steadily since 1970. D) is confined to antitrust law. 2) The Food
Economics Today 16th Edition
707195
Exam Prep
Economics Chapter 27 Suppose Technical Change Lowers The Costs Railroads Result
800 Miller Economics Today, 16th Edition 9) Which of the following is an example of an agency concerned with social regulation? A) Federal Communications Commission B) Securities and Exchange Commission C) Consumer Product Safety Commission D) Federal Energy Regulatory Commission 10) Which of the following statements can correctly be made about social regulation? I. Extensive
Economics Today 16th Edition
707201
Exam Prep
Economics Chapter 28 If The Additional Revenue From Hiring An Additional Worker
854 Miller Economics Today, 16th Edition 91) Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do? A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information
Economics Today 16th Edition
707199
Exam Prep
Economics Chapter 28 Labor Demand For Perfectly
Chapter 28 The Labor Market: Demand, Supply and Outsourcing 28.1 Labor Demand for a Perfectly Competitive Firm 1) For a perfectly competitive firm, the value of the marginal product of labor falls as more workers are hired because of the diminishing A) output price. B) marginal physical product of labor. C) price of labor. D) marginal
Economics Today 16th Edition
707205
Exam Prep
Economics Chapter 28 States Equilibrium Employment And The Market Clearing
894 Miller Economics Today, 16th Edition 47) A decrease in the supply of labor could be caused by A) wage rates falling in another industry. B) b etter working conditions. C) more job flexibility. D) increased wage rates in another industry. 48) Which of the following will not cause the supply of labor curve to shift in the
Economics Today 16th Edition
707207
Exam Prep
Economics Chapter 28 The Utilization Other Factors
910 Miller Economics Today, 16th Edition 14) A profit maximizing monopolist will hire labor up to the point where A) marginal revenue product equals the price of the product. B) marginal revenue product is greater than the wage rate. C) marginal revenue product equals than the wage rate. D) marginal revenue product is less than
Economics Today 16th Edition
707203
Exam Prep
Economics Chapter 28 Wage Determination Perfectly Competitive
874 Miller Economics Today, 16th Edition 12) The price elasticity of demand for a variable input will be greater A) the fewer substitutes there are for the final product. B) the easier it is for a particular input to be substituted for by other inputs. C) the lower the price elasticity of supply of
Economics Today 16th Edition
707213
Exam Prep
Economics Chapter 29 Economic Effects Labor Unions Question
Chapter 29 Unions and Labor Market Monopoly Power 965 56) In the above figure, which wage rate yields the highest union employment? A) W1B) W2C) W3D) W2W1 57) In the above figure, which wage rate will maximize union members income? A) W1B) W2C) W3D) W3W1 Answer: B Diff: 2 Topic: 29.2 Union Goals and Strategies A ACSB: A nalytic skills Question Status:
Economics Today 16th Edition
707215
Exam Prep
Economics Chapter 29 Monopsony Buyer Monopoly Analytic
Chapter 29 Unions and Labor Market Monopoly Power 983 22) A firm that is a monopolist in the output market and a monopsonist in the input market A) will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage. B) will restrict the level of
Economics Today 16th Edition
707209
Exam Prep
Economics Chapter 29 The United Auto Workers Is An Example Of
Chapter 29 Unions and Labor Market Monopoly Power 29.1 Industrialization and Labor Unions 1) The earliest unions in the United States were A) industrial unions. B) craft unions. C) public sector unions. D) military unions. 2) Labor unions composed of workers who engage in a particular trade or skill, such as carpentry, are called A) craft unions. B)
Economics Today 16th Edition
707211
Exam Prep
Economics Chapter 29 Union Goals And Strategies
Chapter 29 Unions and Labor Market Monopoly Power 945 97) A labor union composed of workers in the same industry is called A) a craft union. B) an industrial union. C) a company shop. D) a guild. 98) The Taft Hartley Act outlawed all of the following practices EXCEPT A) secondary boycotts. B) union shops. C)
Economics Today 16th Edition
707075
Exam Prep
Economics Chapter 3 An Increase In The Price Of Socks
Chapter 3 Demand and Supply 229 47) Two goods are substitutes when A) an increase in the price of one reduces the demand for the other. B) an increase in the price of one raises the demand for the other. C) the two goods are used together. D) the two goods have the same price. 48)
Economics Today 16th Edition
707073
Exam Prep
Economics Chapter 3 Demand Analytic Skills Question Status
Chapter 3 Demand and Supply 3.1 Demand 1) The law of demand states that A) consumers have unlimited demands for a good. B) a higher price will lead to increased sales. C) the price can never be too high for some consumers. D) quantity demanded will vary inversely with the price of the good. 2) The law of
Economics Today 16th Edition
707074
Exam Prep
Economics Chapter 3 Shifts Demand Analytic Skills Question
Chapter 3 Demand and Supply 209 3) A demand curve A) slopes down because of the inverse relationship between price and quantity demanded. B) slopes up because of the direct relationship between price and quantity demanded. C) can slope up or down depending on the tastes of the consumer. D) is vertical for necessities, upward
Economics Today 16th Edition
707076
Exam Prep
Economics Chapter 3 Status Previous Edition 20 The Supply Curve Shows
Chapter 3 Demand and Supply 249 131) What is the difference between a normal good and an inferior good? How does this relate to the demand curve? 3.4 The Law of Supply 1) The law of supply implies that the supply curve is A) flat. B) upward sloping. C) downward sloping. D) vertical. Answer: B Diff: 2 Topic: 3.4
Economics Today 16th Edition
707077
Exam Prep
Economics Chapter 3 The Demand For A Normal Goods Rises
Chapter 3 Demand and Supply 269 39) Which of the following is a non price determinant of supply? A) the price of related goods consumers may buy B) technological advances in production C) consumers incomes D) the number of consumers 40) The supply curve will shift to the left when A) the supply of the product increases.
Economics Today 16th Edition
707078
Exam Prep
Economics Chapter 3 The Market Clearing Price Is
286 Miller Economics Today, 16th Edition 34) When there is a shortage, I. there is a tendency for price to increase. II. there is an excess quantity demanded. A) I only B) II only C) Both I and II D) Neither I nor II 35) When a shortage exists, A) the price is below the market
Economics Today 16th Edition
707221
Exam Prep
Economics Chapter 30 Americans Provide Minimum Income For The Aged
Chapter 30 Income, Poverty, and Health Care 1041 23) The idea that the Lorenz curve should be along the 45 degree line is consistent with A) the productivity standard. B) the egalitarian principle. C) the conservative principle. D) none of the above. 24) Which of the following is NOT correct regarding the theories of
Economics Today 16th Edition
707219
Exam Prep
Economics Chapter 30 Income Differences Analytic Skills Question Status Previous Edition38
Chapter 30 Income, Poverty, and Health Care 1021 87) Regarding income distribution and the distribution of wealth, A) wealth is a stock concept and income a flow concept. B) a stock is evaluated at a given moment in time; a flow is evaluated during a period of time. C) income, a flow, can be
Economics Today 16th Edition
707217
Exam Prep
Economics Chapter 30 Lorenz Curve Does Not Account For Differences
Chapter 30 Income, Poverty, and Health Care 30.1 Income 1) The Lorenz curve shows A) the demand for jobs. B) the supply of jobs. C) the elasticity of jobs. D) the distribution of income. 2) The graph which represents the distribution of income in an economy is called the A) Laffer curve. B) Lorenz curve. C) distribution curve.
Economics Today 16th Edition
707223
Exam Prep
Economics Chapter 30 The Impact Of Technological Change In The Health
Chapter 30 Income, Poverty, and Health Care 1057 30.5 Health Care 1) Which of the following is considered a third party within the medical services industry? A) The patient B) The private insurance company C) The for profit hospital D) The medical provider, i.e. physician 2) According to the text, government spending accounts for about
Economics Today 16th Edition
707227
Exam Prep
Economics Chapter 31 A Good That Has Social Costs That Are Equal
1092 Miller Economics Today, 16th Edition 87) Which of the following is the main reason for externalities? A) The full cost of a transaction is not borne by the buyer/seller of the product. B) Police enforcement of scalping is not uniformly enforced. C) the lack of organized exchanges for all goods and services D) The
Economics Today 16th Edition
707231
Exam Prep
Economics Chapter 31 Reducing Humanity Carbon Footprint
1128 Miller Economics Today, 16th Edition 30) Which of the following is a true statement? A) Externalities cannot be solved by market solutions and always require government action. B) Externalities would never be a problem if people were willing to comply with government regulations. C) Voluntary agreements can solve externality situations by making the party
Economics Today 16th Edition
707225
Exam Prep
Economics Chapter 31 Social Costs Question Status Previous Edition 43 Costs Borne
Chapter 31 Environmental Economics 31.1 Private versus Social Costs 1) Which of the following statements best defines private costs? A) They are internal in the sense that the firm or household must explicitly take them into account. B) They are costs borne by people other than those who commit the action. C) They are synonymous with social
Economics Today 16th Edition
707229
Exam Prep
Economics Chapter 31 The Optimal Amount Air Cleanliness Or The
1112 Miller Economics Today, 16th Edition 21) Refer to the above figure. The marginal benefit of pollution abatement is curve A) (1). B) (2). C) (3). D) (4). 22) Refer to the above figure. If the marginal cost curve for pollution abatement shifts to the right, everything considered, the A) degree of air quality or
Economics Today 16th Edition
707239
Exam Prep
Economics Chapter 32 Foreign Trade Dynamics The Global Economy Question Status
Chapter 32 Comparative Advantage and the Open Economy 609 10) Since the 1930s, overall tariff rates in the United States have A) increased. B) decreased. C) remained unchanged. D) b ecome very unstable, changing week to week. 11) A tariff is A) a subsidy on domestically produced goods. B) the difference between the world market price and the domestic price
Economics Today 16th Edition
707233
Exam Prep
Economics Chapter 32 Mutual Gains From Exchange Analytic Skills Question Status
Chapter 32 Comparative Advantage and the Open Economy 32.1 The Worldwide Importance of International Trade 1) Since World War II, world trade has A) decreased in importance as nations turn inward due to security concerns. B) increased, but not as dramatically as annual world real GDP has climbed. C) risen sharply, outpacing gains in annual world
Economics Today 16th Edition
707235
Exam Prep
Economics Chapter 32 Why Trade Comparative Advantage
Chapter 32 Comparative Advantage and the Open Economy 569 Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product United States Mexico Computers 8 10 Bicycles 4 2 64) Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a computer in the United States is ________ while
Economics Today 16th Edition
707237
Exam Prep
Economics Chapter 32 World War Inessentially This Argument Form Thea
Chapter 32 Comparative Advantage and the Open Economy 589 4) Which of the following is consistent with international trade theory? A) The United States needs trade restrictions to stay competitive. B) The United States has been falling behind Europe and Japan because its economy is too open. C) The standard of living within a country
Economics Today 16th Edition
707243
Exam Prep
Economics Chapter 33  When There Is Political Instability In Another Country
Chapter 33 Exchange Rates and the Balance of Payments 649 International Transactions 1. U.S. resident buys a German camera $300 2. U.S. resident buys stock in a German company 20,000 3. U.S. resident purchases insurance from a German company 1,500 4. U.S. resident sends a present to someone in Germany 200 5. German buys a U.S.
Economics Today 16th Edition
707245
Exam Prep
Economics Chapter 33 Determining Foreign Exchange Rates
Chapter 33 Exchange Rates and the Balance of Payments 669 33) Which of the following will lead to a depreciation of the U.S. dollar against the British pound? A) An increase in British demand for U.S. imports B) An increase in U.S. interest rates C) A decrease in British demand for U.S. assets D) A
Economics Today 16th Edition
707241
Exam Prep
Economics Chapter 33 The Balance Payments And
Chapter 33 Exchange Rates and the Balance of Payments 33.1 The Balance of Payments and International Capital Movements 1) The balance of payments is A) the value of goods and services bought and sold in the world market. B) a summary record of a country s economic transactions with foreign residents and governments. C) a summary record
Economics Today 16th Edition
707247
Exam Prep
Economics Chapter 33 The Gold Standard And
686 Miller Economics Today, 16th Edition 102) Use the above figure. At equilibrium, the exchange rate is A) 1 euro $1.25. B) $0.80 1.25 euro. C) $1 1.25 euro. D) $1 8 euros. 103) Use the above figure. A rightward shift of the demand curve, ceteris paribus , would result in A) dollar depreciation. B) dollar appreciation. C) euro
Economics Today 16th Edition
707080
Exam Prep
Economics Chapter 4 Changes Demand And Supply
322 Miller Economics Today, 16th Edition 41) An increase in the equilibrium quantity of good X can be caused by A) an increase the price of inputs utilized in producing good X. B) an increase in the price of good X. C) a technological improvement in the process of producing good X. D) a reduction
Economics Today 16th Edition
707079
Exam Prep
Economics Chapter 4 Market Clearing Price Will Rise And Equilibrium
Chapter 4 Extensions of Demand and Supply Analysis 4.1 The Price System and Markets 1) An economic system in which relative prices change to reflect changes in supply and demand for different commodities is known as a A) socialist system. B) communist system. C) queuing system. D) market system. 2) In a market system, which component conveys
Economics Today 16th Edition
707083
Exam Prep
Economics Chapter 4 Price Floors Agriculture Analytic
382 Miller Economics Today, 16th Edition 21) The adverse effects of rent controls include A) keeping rental rates too high in a normal market. B) excessive construction of new rental housing. C) reduced incentive to construct new rental housing. D) increased incentives for people to purchase their own homes. 22) Who benefits primarily from rent controls? A)
Economics Today 16th Edition
707084
Exam Prep
Economics Chapter 4 Quantity Restrictions Analytic Skills Question
Chapter 4 Extensions of Demand and Supply Analysis 395 9) The effect of legislation establishing a minimum wage above the market clearing wage is A) unemployment. B) a shortage of labor. C) higher wages for all workers. D) a shift of the demand for labor curve. 10) As a result of establishing a legal
Economics Today 16th Edition
707082
Exam Prep
Economics Chapter 4 The Policy Government Imposed
362 Miller Economics Today, 16th Edition 32) Price ceilings often generate A) market clearing prices. B) rapid increases in supply to meet the excess demand. C) equilibriums that utilize rationing by price. D) b lack markets. 33) An example of a black market is A) a retail market. B) a discount market. C) scalping. D) b arter. Answer: C Diff: 1 Topic: 4.4 The Policy
Economics Today 16th Edition
707081
Exam Prep
Economics Chapter 4 The Rationing Function Prices Analytic Skills question Status
342 Miller Economics Today, 16th Edition 115) When supply increases and at the same time demand decreases, we A) can predict that both equilibrium price and quantity will increase. B) can predict that both equilibrium price and quantity will decrease. C) cannot predict equilibrium quantity, but know that equilibrium price will decrease. D) cannot predict
Economics Today 16th Edition
707086
Exam Prep
Economics Chapter 5 Economics Today Edition 99 External Benefits Are Taken
Chapter 5 Public Spending and Public Choice 427 61) An effluent fee is a A) subsidy given to the producer of a positive externality. B) charge to a polluter that gives the right to discharge pollution into the air. C) fine imposed on a polluter for dumping illegal pollution. D) charge for a public good. 62)
Economics Today 16th Edition
707085
Exam Prep
Economics Chapter 5 Market Failures Occur When
Chapter 5 Public Spending and Public Choice 5.1 What a Price System Can and Cannot Do 1) Which of the following terms describes the situation in which too few or too many resources go to a specific economic activity because of external benefits or costs? A) an technologically inefficient market B) a market failure C) a
Economics Today 16th Edition
707089
Exam Prep
Economics Chapter 5 Status Previous Edition 52 What One Result The
Chapter 5 Public Spending and Public Choice 483 24) In the above figure, if a Medicare subsidy that had previously been paid by the government has now been eliminated, the result will be A) an increase in the price received by producers, from P0to Ps. B) a decrease in the price received by producers,
Economics Today 16th Edition
707087
Exam Prep
Economics Chapter 5 The Other Economic Functions
Chapter 5 Public Spending and Public Choice 447 9) The legal system in the United States tends A) to support monopolies. B) to actively discourage unionization. C) to discourage the entry of new firms into industries. D) to promote competition. 10) The U.S. legal system mainly engages in activities that A) are dedicated to producing private goods. B)
Economics Today 16th Edition
707088
Exam Prep
Economics Chapter 5 The Political Functions Government Question Status Previous
Chapter 5 Public Spending and Public Choice 467 94) Explain why ensuring economic stability is an economics function of government? 95) Suppose a valley periodically floods. A dam can be built in the river that would prevent the flooding. Explain how flood control provided by building the dam arguably fits the characteristics of a
Economics Today 16th Edition
707092
Exam Prep
Economics Chapter 6 Taxation From The Point
534 Miller Economics Today, 16th Edition 37) Dynamic tax analysis assumes A) all of the present tax rates will be in place for a minimum of twenty years. B) changes in the tax rates have no effect on the tax base. C) changes in the tax rates have no effect on tax revenue. D) changes
Economics Today 16th Edition
707091
Exam Prep
Economics Chapter 6 The Tax That Brings In The Most Revenue In The
518 Miller Economics Today, 16th Edition 19) Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset today, your inflation adjusted capital gains would be zero due to inflation over the last eight years. The capital gains tax is 28
Economics Today 16th Edition
707090
Exam Prep
Economics Chapter 6 United States The Value All Goods Services
Chapter 6 Funding the Public Sector 6.1 Paying for the Public Sector 1) The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the A) government balance sheet constraint. B) government budget constraint. C) tax collection constraint
Economics Today 16th Edition
707095
Exam Prep
Economics Chapter 7 All Goods And Services Economy Relative Price
Chapter 7 The Macroeconomy: Unemployment, Inflation, and Deflation 41 36) Which of the following statements is true about the seasonally adjusted unemployment rate? A) The seasonally adjusted unemployment rate is the sum of the frictional unemployment rate, structural unemployment rate, and cyclical unemployment rate. B) The seasonally adjusted unemployment rate shows how the unemployment
Economics Today 16th Edition
707096
Exam Prep
Economics Chapter 7 Inflation And Deflation Analytic Skills Question Status Previous
Chapter 7 The Macroeconomy: Unemployment, Inflation, and Deflation 61 2005 Market Basket 2005 2010 Commodity Quantity Price Price A 50 3 4 B 75 2 3 50) Refer to the above table. You are given information on Jane s consumption for 2005 and 2010. Using 2005 as the base year, compute the price index for 2010. The
Economics Today 16th Edition
707094
Exam Prep
Economics Chapter 7 Status Previous Edition131 What
Chapter 7 The Macroeconomy: Unemployment, Inflation, and Deflation 21 87) A discouraged worker is someone who A) has been fired. B) is unemployed. C) is not in the labor force. D) is employed. 88) One criticism of the unemployment rate is that it A) does not include the number of discouraged workers as unemployed. B) does
Economics Today 16th Edition
707093
Exam Prep
Economics Chapter 7 The Duration Unemployment Tends Toa Increase When
Chapter 7 The Macroeconomy: Unemployment, Inflation, and Deflation 7.1 Unemployment 1) Which of the following is true of unemployment? A) It is defined as the number of people actively looking for work who do not have jobs. B) The result is that the economy operates inside its production possibilities curve. C) There are psychological consequences associated
Economics Today 16th Edition
707097
Exam Prep
Economics Chapter 7 The Macroeconomy Unemployment Inflation
Chapter 7 The Macroeconomy: Unemployment, Inflation, and Deflation 79 26) The nominal rate of interest is A) the interest rate observed in today s market. B) the interest rate observed in the market minus the inflation premium. C) not influenced by inflation. D) a value that depends upon the stock market. 27) The real rate of
Economics Today 16th Edition
707101
Exam Prep
Economics Chapter 8 Excluding Indirect Business Taxes And Depreciation
Chapter 8 Measuring the Economy s Performance 157 85) Net investment refers to A) the change in the capital stock after subtracting out depreciation. B) the change in inventories over a 1 year period. C) the change in investment spending and the change in government expenditures on infrastructure. D) exports minus imports. 86) If consumption expenditures are
Economics Today 16th Edition
707102
Exam Prep
Economics Chapter 8 Gdp Measured Ind When Individual Does Not
176 Miller Economics Today, 16th Edition 51) Disposable personal income is A) the total of factor payments to owners of resources. B) the dollar value of all final goods and services produced in a country in a year. C) the amount of monetary payments households actually receive before paying personal income taxes. D) the amount of
Economics Today 16th Edition
707100
Exam Prep
Economics Chapter 8 Measuring Gdp Analytic Skills Question Status Previous Edition Consumption
Chapter 8 Measuring the Economy s Performance 137 107) Define and explain gross domestic product. 108) Why aren t financial transactions, sales of secondhand goods, and household production included in measuring GDP? Answer: Financial transactions do not involve the production of final goods and services, so they are not included. Secondhand goods also were not
Economics Today 16th Edition
707098
Exam Prep
Economics Chapter 8 Measuring The Economy Performance 81 The Simple
Chapter 8 Measuring the Economy s Performance 8.1 The Simple Circular Flow 1) The simple circular flow of income shows that the total income in an economy equals A) total profits earned by firms. B) all taxes paid by households. C) the total amount of money supplied by the government. D) total expenditures. 2) The observation that goods
Economics Today 16th Edition
707099
Exam Prep
Economics Chapter 8 Status Previous Edition 66 Gdp Measure All The
Chapter 8 Measuring the Economy s Performance 117 25) Why might a homemaker be upset with the way Gross Domestic Product (GDP) is calculated? A) Because the government always underestimates the dollar value of the household services produced at home and outside the market that are included in the Gross Domestic Product (GDP) statistic B)
Economics Today 16th Edition
707103
Exam Prep
Economics Chapter 9 Economic Growth Is Best Measured By Increases In
Chapter 9 Global Economic Growth and Development 9.1 How Do We Define Economic Growth? 1) An increase in growth rates will cause the production possibilities curve to A) shift inward. B) b ecome steeper. C) b ecome flatter. D) shift outward. 2) An outward shift of the production possibilities curve represents A) economic contraction. B) economic growth. C) economic recession. D) economic
Economics Today 16th Edition
707106
Exam Prep
Economics Chapter 9 Establishing System Property Rights Creative Destruction Where
250 Miller Economics Today, 16th Edition 4) A system of private property rights A) enhances economic growth by creating incentives to the Fed to maintain stable prices. B) enhances economic growth by increasing the probability that a person can gain from making investments today. C) retards economic growth by serving the interests of the wealthy
Economics Today 16th Edition
707105
Exam Prep
Economics Chapter 9 New Growth Theory And The Determinants Growth
Chapter 9 Global Economic Growth and Development 235 18) According to economist Paul Romer, economies that wish to experience growth must A) invest most of their savings in national defense. B) invest in knowledge. C) drastically lower their standards of living. D) b ecome command economies. 19) For developing countries, one of the more effective ways to become
Economics Today 16th Edition
707104
Exam Prep
Economics Chapter 9 Saving Fundamental Determinant Economic
Chapter 9 Global Economic Growth and Development 215 80) What is the real GDP after four years if Country X s average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million? A) $2,993.0 million B) $3,833.5 million C) $1,077.5 million D) $3,250.4 million 81) The per capita GDP for Hungary
Economics Today 16th Edition

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