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Chapter 1 1 Food And Drug Administration Increase The Price
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An economic system is 1) A) a mechanism to allocate scarce resources. B) an organization that generates profits. C) the universe of […]
Chapter 1 2 Incentive Aa Reward For Desired Behavior
88) In economics, the word “aggregate” refers to 88) A) the public sector itself. B) the government. C) how individual households differ from each other. D) an economy as a whole. 89) Normative economic statements 89) A) are usually irrational. […]
Chapter 1 3 Friend Wants Learn How The Unemployment
177) The slope of a straight line 177) A) is the same at all points along that line. B) is always equal to zero. C) changes from one point to the next on that line. D) cannot be defined. 178) […]
Chapter 1 4 Which The Following Example Normative Economic
264) Why is economics called an empirical science? 264) A) because economics utilizes intuition rather than data to evaluate a model’s worth B) because economics uses impressions to evaluate the usefulness of its models C) because economics has been used […]
Chapter 1 5 Disagree Positive Statement One That Either
321) A common approach that economists use to understand, explain and predict economic phenomena is to 321) A) examine people’s thought processes. B) ask what people think. C) conduct experiments in a science lab. D) form a theory or model. […]
Chapter 19 1 Income elasticity of demand reflects
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Consider the following data: Price of A Quantity Demanded of A $5 6 $4 10 The absolute value of the price elasticity […]
Chapter 19 2 Supply Curve That Parallel The Quantity
Pounds of Artisan Jars of Period Income/Week Bread Sold Jam Sold 1 $250 210 2 $500 5 8 78) Use the above table. Based on the information in the table, jam is a(n) 78) A) inferior good. B) normal good. […]
Chapter 19 3 The Price Elasticity Demand Isa Always
161) The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which good’s quantity demanded is more responsive to a change in price? 161) A) Good X […]
Chapter 19 4 When The Price Cable Modems Decreased
242) Refer to the above figure. Demand will be unit–elastic when quantity is between 242) A) 0 and B. B) B and C. C) A and B. D) 0 and A. 243) The slope of the perfectly inelastic demand curve […]
Chapter 19 5 Goods Are Completely Unrelated Their Cross
316) A perfectly elastic supply curve is 316) A) a horizontal straight line. B) a vertical straight line. C) a straight line coming out of the origin. D) a straight line that crosses the horizontal axis. 317) When demand is […]
Chapter 19 6 The Effect Price Change Revenues Depends Whether
380) If the supply of a good is perfectly inelastic, the price elasticity of supply will equal 380) A) zero. B) positive infinity. C) one. D) none of the above. 381) The longer the time frame involved, the more likely […]
Chapter 2 1 Refer The Above Figure Which The
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The division of productive activities among persons and regions so that no one individual or area is totally self–sufficient is known as […]
Chapter 2 2 The Total Amount Resources Takes Produce Bales
66) In the above figure, the combination of personal computers and televisions shown by point w 66) A) is an efficient use of society’s resources because it is below the production possibilities curve. B) is beyond the capacity of society […]
Chapter 2 3 What Meantby Quotan Efficient Outcomequot This Contexta
132) Suppose you have four choicesgo to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is 132) A) the value of the book […]
Chapter 2 4 How Does Economy Represented Straight Line
205) In the above figure, how many bushels of corn are produced at point “a”? 205) A) 10,000 B) 1,000 C) 0 D) 2,500 206) The above figure is referred to as a(n) 206) A) trade–off curve. B) production possibilities […]
Chapter 2 5 Suppose That Canadian Farmers Can Grow
276) Which of the following statements about a movement along the production possibilities curve in the above figure is FALSE? 276) A) An additional computer can be produced only if fewer televisions are produced. B) Society cannot have more of […]
Chapter 2 6 Resources Are Not Fully Employed Current Technology
337) The opportunity cost of attending college might best be described as 337) A) the value that the student attaches to not working. B) the money that must be paid in order to attend college. C) the highest–valued alternative use […]
Chapter 2 7 The Opportunity Cost Action The Value
397) What is the difference between comparative advantage and absolute advantage? 398) Explain the difference between human needs and wants. Answer: Needs are objectively undefinable. Needs are the essentials of life: food, clothing, water and shelter. They are basics of […]
Chapter 20 1 What does point N represent?
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The price of good “a” is $5 and the price of good “b” is $15. If the marginal utility of good “a” […]
Chapter 20 2 Bob Experiences Diminishing Marginal Utility After Consuming
Quantity of Movies Michelle’s Total Robert’s Total Watched per Week Utility per Week Utility per Week 0 0 0 1100 100 2195 190 3270 270 4340 340 5390 400 6420 350 7435 390 8445 420 9450 440 10 440 450 […]
Chapter 20 3 the satisfaction from consuming A is more than
Quantity of Movies Michelle’s Total Robert’s Total Watched per Week Utility per Week Utility per Week 0 0 0 1100 100 2195 190 3270 270 4340 340 5390 400 6420 350 7435 390 8445 420 9450 440 10 440 450 […]
Chapter 20 4 If a consumer concludes that the marginal utility of the last
211) Dave is undecided about whether to eat at a restaurant or to order pizza at home. He then obtains a coupon for 20 percent off at the restaurant and decides to go there to eat. This is an example […]
Chapter 20 5 The Reason For This Change That Thea
275) Refer to the above figure. Given the indifference map and budget constraint represented above, what would make all possible points attainable for the individual to consume? 275) A) a decrease in income B) a decrease in the price of […]
Chapter 20 6 Consumer Optimum Consuming And And The
Glasses of Water Total Utility Marginal Utility 1100 2175 3225 4250 5260 6255 341) Using the above table, the marginal utility for the sixth glass of water is 341) A) 5 utils. B) 260 utils. C) 255 utils. D) –5 […]
Chapter 20 7 Suppose That Jacob Going Buffet Restaurant That
408) Refer to the above figures. Amy’s total utility for chocolate chip cookies reaches a maximum at 4 cookies. Which panel best represents marginal utility? 408) A) Panel A B) Panel B C) Panel C D) Panel D 409) Why […]
Chapter 20 8 Maximize Utility The Consumer Allocates Income
Answer Key Testname: C20 133 1) A 2) D 3) D 4) B 5) A 6) B 7) A 8) A 9) D 10) B 11) C 12) B 13) C 14) D 15) A 16) D 17) B 18) […]
Chapter 21 1 Uncertain Need Know The Interest Rate answer explanation
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The Hawaiian island of Lana’i is privately owned by Castle & Cooke and for generations most of its land was used to […]
Chapter 21 2 Corporations Are Able Raise Large Amounts Financial
88) Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $22,000 a year as a florist. If she chooses to be a therapist, the […]
Chapter 21 3 Any increases indemand for this property increases
173) All of the following are advantages of a corporation EXCEPT 173) A) unlimited life. B) limited liability. C) ability to raise large sums of financial capital. D) double taxation. 174) In a partnership of two people 174) A) the […]
Chapter 21 4 True a Partnerships Are Larger Than Both Proprietorships
264) According to Ricardo’s explanation of land rent, what happens when the demand for land increases? 264) A) Revenues to owners of land increase but economic rent declines. B) The supply curve shifts to the right just enough to keep […]
Chapter 21 5 Suppose The Best Investment You Could
352) Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the […]
Chapter 21 6 Explain Your Answer Economic Rent Payment For
415) The higher are a firm’s risk–corrected returns, 415) A) the more advantage it has in obtaining investor financing. B) the more difficulty it will have financing its expansion plans. C) the lower are its labor costs. D) the higher […]
Chapter 22 1 Fixed Costsabcd10d Marginal Costs 35 Which The
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Refer to the above figure. Diseconomies of scale exist 1) A) over the entire range of output. B) up to output Q2. […]
Chapter 22 2 The Amount Variable Input Increases While
69) Which of the following statements with respect to the figure below is INCORRECT? 69) A) If the permanent rate of output increases to Q2 in panel (a), it will be more profitable to have a plant size corresponding to […]
Chapter 22 3 At what quantity of labor does the marginal cost curve start to
QTFC TVC TC 0$90 $ 0 $ 90 190 25 115 290 32 122 390 42 132 490 64 154 590 95 185 137) Refer to the above table. When output rises from 4 units to 5 units, marginal costs […]
Chapter 22 4 Refer The Above Figure The Curve
212) As a firm increases the level of output that it produces, short–run average fixed cost 212) A) decreases up to a particular level of output and then increases. B) decreases. C) rises and then falls. D) remains constant since […]
Chapter 22 5 The locus of points representing the minimum unit cost of producing
280) Which of the following would be a fixed input to an automobile firm? 280) A) engineers B) a factory in Detroit C) car batteries D) steel 281) Which of the following would NOT be considered a fixed cost of […]
Chapter 22 6 Assuming Labor The Only Variable Input
341) The short run is 341) A) up to three years. B) the period of time in which the firm can vary its rate of output. C) a year or less. D) the period of time in which the firm […]
Chapter 23 1 For Firm This Market Mr Output 100
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Total Output Costs 0 $8 1 13 2 16 3 21 4 30 5 45 1) Refer to the above table. The table […]
Chapter 23 2 Firm Will Shut Down The Short
65) Marginal revenue is 65) A) change in total revenue/change in output. B) total revenue/change in output. C) change in total revenue/output. D) total revenue/output. 66) For the perfectly competitive firm, price 66) A) equals average total cost. B) depends […]
Chapter 23 3 Firms Long Run Position Under Perfect
131) In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies 131) A) consumers are able to find out about lower prices charged by other firms. B) the products sold will […]
Chapter 23 4 Perfectly Competitive Firm Producing Output Which
201) If a perfectly competitive firm is producing at an output at which marginal cost exceeds marginal revenue 201) A) the firm should expand production. B) the firm should reduce production. C) price will be at the profit maximizing level. […]
Chapter 23 5 The Opportunity Cost Society Producing One
272) Refer to the above figure. If the market price is equal to A, which statement can be made about economic profits? 272) A) Economic profits are negative and equal to GCEF. B) Economic profits are positive and equal to […]
Chapter 23 6 The Long Run The Price For
339) In the above figure, at the profit–maximizing rate of production for the perfectly competitive firm total cost is 339) A) $70. B) $30. C) $100. D) $130. 340) The demand curve faced by a perfectly competitive industry 340) A) […]
Chapter 23 7 As such, there is a level of output at which total profits the difference
402) What does a perfectly competitive firm do to maximize profits? 403) “A perfect competitor should maximize total revenues.” Do you agree or disagree? Explain. Answer: Disagree. A perfect competitor should maximize total profits instead of total revenues. Because the […]
Chapter 24 1 The Above Figure What The Profit
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is NOT a necessary condition for price discrimination? 1) A) downward sloping demand curve B) having a constant […]
Chapter 24 2 The Price Elasticity Demand For Monopolists
61) In the above figure, the distance between A and B represents this monopoly firm’s 61) A) average profit per unit. B) total revenue. C) total profit. D) average cost per unit. 62) A barrier to entry 62) A) usually […]
Chapter 24 3 The Drug Would Have Many Close Substitutesd
125) The portion of consumer surplus that no one in society is able to obtain in a situation of monopoly is known as 125) A) a deadweight loss. B) a market failure. C) a market externality. D) an unrealized loss. […]
Chapter 24 4 Which The Following Would Best Describe
194) Which of the following would best describe the demand curve faced by a monopoly firm? 194) A) horizontal line at the market price B) same as the market demand curve C) vertical line at the output level D) same […]
Chapter 24 5 Monopolist Has Four Distinct Groups Customers
264) Which of the following is TRUE of a perfectly competitive firm and a monopoly in the long run? 264) A) P = ATC B) P = MC C) MR = MC D) P = MR 265) If a monopolist […]
Chapter 24 6 Why answer Disagree The Monopolist Limited The Demand
333) Monopolies misallocate resources because 333) A) price does not equal average variable cost. B) marginal cost does not equal average total cost. C) profits are usually positive. D) price does not equal marginal cost. 334) Refer to the above […]
Chapter 24 7 The Marginal Revenue Curve Liesbelow The Demand
384) Using a graph, show the profits of a monopoly. Suppose fixed costs increased enough to make the firm earn an economic loss. Show such a situation. Would the monopolist earn economic losses in the long run? Why or why […]
Chapter 25 1 Aexplanation35abcd113940 The Above Figure The Monopolistically Competitive
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An information product is a product for which 1) A) the first unit is very costly to make but additional units are […]
Chapter 25 2 Which Statement Incorrect With Respect
72) Use the above figure. The economic profit for this firm is 72) A) the distance between T and x–axis. B) zero. C) the distance between E and x–axis. D) the distance between T and E. 73) An information product […]
Chapter 25 3 The Above Figure This Profit
137) Refer to the above figure. The figure shows the cost structure of a firm producing an information product. Which curve would represent the marginal cost for an information product? 137) A) Curve 1 B) Curve 2 C) Curve 3 […]
Chapter 25 4 Which of the following describes monopolistic
200) In the long run, both monopolistically competitive and perfectly competitive firms attain 200) A) zero economic profits. B) productive efficiency. C) positive economic profits. D) lowest cost production. 201) In a monopolistically competitive market, entry into the industry 201) […]
Chapter 25 5 How Does Differfrom Perfect Competitoranswer The Short
264) Refer to the above figure. Which panel shows a possible short–run equilibrium for monopolistic competition, but is not also a long–run equilibrium? 264) A) Panel A B) Panel B C) Panel C D) Panel D 265) In the long […]
Chapter 26 1 Which The Following Example Horizontal Mergera
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Within a game theory model, if a change in decision–making raises corporation A’s profits by $50 and lowers corporation B’s profits by […]
Chapter 26 2 Which The Following Not Condition That
84) Industry X has four firms. The largest firm in Industry X has more than 90 percent of the market share. Industry Y also has four firms, but each of those four firms in Industry Y has 25 percent of […]
Chapter 26 3 Straight Cut Beauty Salon Merges With
167) The dominant strategy allows a firm to 167) A) transform a zero–sum game into a positive–sum game. B) obtain the highest benefit, regardless of its rivals’ actions. C) transform a negative–sum game into a positive–sum game. D) escape from […]
Chapter 26 4 Joes Hotdog Stand Merges With Company
246) After participating members of a cartel form an agreement on common prices and output quotas, then an individual firm can increase its own profits by 246) A) increasing prices. B) increasing production. C) leaving the cartel. D) incurring higher […]
Chapter 26 5 This Leads Strategic Dependence Which Means That
292) Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) and two pricing strategies (high and low). Which of the following is the outcome of the dominant strategy without cooperation? 292) […]
Chapter 27 1 Natural Monopoly Exists When a Economies Large
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If a regulator forced a natural monopolist to set P = MC 1) A) the monopolist would break even. B) the monopolist […]
Chapter 27 2 Government Regulators Make The Natural Monopolist
80) Regulation focused on the impact of production on the environment and society, the working conditions under which production occurs, or the physical attributes of goods, is known as 80) A) cost–of–service regulation. B) social regulation. C) rate–of–return regulation. D) […]
Chapter 27 3 Sherman Commissionc Exempt From The Antitrust Lawsd
149) The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so […]
Chapter 27 4 Use The Above Figure Commission Regulates
214) Which of the following is NOT a likely market solution to the lemons problem? 214) A) industry standard B) product warranty C) average cost pricing D) product certification 215) Without any regulation, the natural monopolist will 215) A) not […]
Chapter 27 5 Would The Number Accidents Necessarily Decline Why
278) What is the relationship between the Sherman Antitrust Act and the Clayton Act? 278) A) The Sherman Antitrust Act encouraged competition among firms in the U.S. while the Clayton Act encouraged competition among foreign firms. B) The Clayton Act […]
Chapter 28 1 The Marginal Physical Product Labor For
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A firm should hire workers up to the point where 1) A) MFC = P. B) MP = MRP. C) MFC = […]
Chapter 28 2 The Individual Firm Operating Perfectly Competitive
72) When increased demand raises the price of the product, the 72) A) sales will fall. B) marginal revenue product will remain unchanged. C) marginal revenue product will fall. D) marginal revenue product will also increase. 73) A profit–maximizing firm […]
Chapter 28 3 Firm Employs Extra Unit Labor The
145) Assume that a perfectly competitive firm faces a fixed wage rate of $4 and a constant per–unit cost of capital of $2. If the marginal product of labor and capital are 16 and 6, respectively, then to maximize profits […]
Chapter 28 4 Suppose The Market Price Zinc Doubles
223) Which of the following would NOT be a reason for a shift in the labor demand curve? 223) A) a change in demand for the final product B) a change in the price of a related input C) a […]
Chapter 28 5 Refer The Above Table Suppose The Price
296) A short–run increase in the price of a firm’s output will typically 296) A) not impact the hiring of labor. B) lead to a movement along the firm’s demand for labor curve. C) lead to more employment in the […]
Chapter 28 6 The Supply Curve Facing Monopoly Horizontal Because
355) Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the […]
Chapter 29 1 there will be an increase in total employment
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which statement concerning powers granted the President of the United States by the Taft–Hartley Act is TRUE? 1) A) The President can […]
Chapter 29 2 States Werea Professional Unionsb Industrial Unionsc Craft
71) In the above figure, which wage rate will yield the highest wage rates for particular workers? 71) A) W1 B) W2 C) W3 D) W3–W2 72) Which of the following is NOT considered to be a benefit of unionism? […]
Chapter 29 3 When Group Workers Forms Union
146) A primary objective of labor unions is to 146) A) seek better pay and improved work conditions. B) secure equal pay for its members. C) have equal power with their employer. D) all of the above. E) none of […]
Chapter 29 4 Themarginal Factor Cost Curve Above The Supply
Quantity Hourly Total Marginal of Labor Wage Rate Wage Bill Factor Cost 0– – – 1$10 212 3 14 416 518 620 215) In the above table, if the marginal revenue product is $18, how many workers will the profit […]
Chapter 29 5 What The Purpose Strike What Are The
280) The main difference between a monopsonist and a competitive buyer of labor is that 280) A) the competitive firm can hire as many workers as it wants at the going wage while the monopsonist can hire more workers at […]
Chapter 3 1 The Fact That When The Price
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be 1) […]
Chapter 3 2 The Market Clearing Price Isa The
75) The money price of a good is also known as its 75) A) absolute price. B) case price. C) relative price. D) subjective price. 76) The law of supply states that other things being equal 76) A) supply will […]
Chapter 3 3 The Market Supply Curve Found Bya Plotting
145) With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE? 145) A) If demand increases, then the demand curve will shift to the left. B) If a […]
Chapter 3 4 In the above figure, the demand curve for Good A shifts
224) A shift in demand occurs when 224) A) the amount demanded of a good changes at each existing price. B) the price of that good changes. C) the price changes and the good is a normal good. D) there […]
Chapter 3 5 Which The Following Will Not Affect The
294) In order to increase the supply of a good, producers must 294) A) see an increase in quantity supplied by competitors. B) reduce their per–unit costs of producing the good. C) cut back on labor to reduce production costs. […]
Chapter 3 6 This Wouldcausea Increase The Demand For Milk
368) Refer to the above figure. A movement from point A to point B indicates 368) A) an increase in quantity demanded. B) a decrease in demand. C) a decrease in quantity demanded. D) an increase in demand. 369) A […]
Chapter 3 7 Briefly Discuss The Determinants Supply Other Than
427) The price of a loaf of bread is $1.50, the price of a gallon of milk is $3.00, and the price of a pound of butter is $2.40. The price of a loaf of bread relative to a gallon […]
Chapter 30 1 Include Cash Benefits And In Kind
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The more bowed out the Lorenz curve is, the 1) A) richer the society. B) less equal the distribution of income. C) […]
Chapter 30 2 Lorenz Curve That Represents Unequal Income
84) The age–earnings cycle is 84) A) the distribution of money income by age. B) the relationship between earnings while working and retirement benefits for an individual. C) the distribution of wealth by age. D) the regular earnings profile of […]
Chapter 30 3 The program that was created to provide rebates of Social
163) The Social Security system is financed by 163) A) a payroll tax paid only by employers. B) a tax on luxury goods. C) a tax on individual retirement accounts. D) a payroll tax paid by both employers and employees. […]
Chapter 30 4 Refer The Above Figure Which The
240) The country reflecting perfect income equality in the above figure is 240) A) country 3. B) country 5. C) country 1. D) country 4. 241) Which of the following income maintenance programs is designed to establish nationwide minimum incomes […]
Chapter 30 5 Lorenz Curve Thefarther The Lorenz Curve From
283) Which of the following is NOT considered a determinant of income differences? 283) A) equity or fairness B) productivity C) age D) discrimination 284) In the above figure, the curve that represents the second most income equality is 284) […]
Chapter 31 1 External Costs Only Private Costs Only
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The marginal cost curve of pollution abatement is 1) A) vertical. B) downward sloping. C) upward sloping. D) horizontal. 2) When social […]
Chapter 31 2 Suppose There Are Two Firms River
67) To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if 67) A) the cost of ascertaining the actual economic costs are relatively small. B) the economic damages […]
Chapter 31 3 Which The Following Statements True About
142) Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Technological change that made it easier to produce in a “cleaner” fashion would cause 142) A) curve (1) to […]
Chapter 31 4 Common Property Isa Exclusive Rights Owner ship
218) In the above figure 218) A) the optimal degree of air cleanliness is less than 100 percent. B) the marginal cost curve slopes up because of the law of diminishing returns. C) Neither A nor B are correct. D) […]
Chapter 31 5 Good That Has Social Costs That
272) A good that has social costs that exceed private costs has a quantity that is 272) A) too high. B) the best society can do. C) too low. D) just right. 273) To correct for the social impact of […]
Chapter 32 1 Everyone Benefits From Free Traded Free Trade
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose an industry receives protection from the government in the form of tariffs. A number of years later, it is observed that […]
Chapter 32 2 maximum Feasible Hourly Production Rates Either computers Bicycles
Maximum Feasible Hourly Production Rates of Either Product A or Product B Using All Available Resources Product Country X Country Y A 4 8 B 4 4 81) Refer to the above table. If opportunity costs are constant, then the […]
Chapter 32 3 According The Infant Industry Argument Protection
154) Refer to the above figures. A tariff is placed on a foreign good. Which figures represents the situation in the domestic market for a competing domestic good? 154) A) Panel A B) Panel B C) Panel C D) Panel […]
Chapter 32 4 maximum Feasible Hourly Production Rates Either product Product
233) Which of the following statements is FALSE? 233) A) Sophisticated financial systems have given U.S. productive efficiency a boost. B) When it comes to overall productive efficiency, compared to Japan, Germany and the rest of the European Union, the […]
Chapter 32 5 Agree Since Comparative Advantage Based Relative
Maximum Feasible Hourly Production Rates (in Tons) of Either Wine or Beef Using All Available Resources Product Argentina France Wine (gallons) 30 60 Beef (pounds) 10 30 281) Use the above table. Assuming constant opportunity costs, if Argentina and France […]
Chapter 33 1 Under Flexible Exchange Rate System Increase The
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An increase in a country’s rate of inflation is apt to 1) A) reduce its imports and improve its trade balance. B) […]
Chapter 33 2 Us Firm Michigan Nissan Plant Tennesseeb Deposit
81) An example of a deficit item on the U.S. balance of payments is 81) A) a U.S. resident flies from New York to Rome on British Airways. B) the sale of a carburetor made in Michigan to a Honda […]
Chapter 33 3 Then The Price Euro Isa
155) Any transaction that leads to a payment by a country’s residents or government is a(n) 155) A) asset. B) surplus item. C) debt. D) deficit item. 156) In international trade, all payments and gifts that are related to the […]
Chapter 33 4 Exchange Rates That Are Allowed Fluctuate
234) If the Mexican peso appreciates against the U.S. dollar 234) A) U.S. exports will become more expensive in Mexico. B) Mexican exports will become more expensive in the United States. C) there will be no change in the price […]
Chapter 33 5 The Balance Oftrade Makes Portion The Balance
280) An increase in the inflation rate of one country relative to another country will probably cause 280) A) a balance of trade deficit for the inflating country. B) a current account surplus for the inflating country. C) an increase […]
Chapter 4 1 Increase The Price Labor Used Produce
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An import quota is a limit on the 1) A) number of foreign workers allowed to work in a country. B) value […]
Chapter 4 2 Demand Decreased And Supply Increasedb Demand And
70) If producers must receive a higher price to be induced to produce any quantity, we can conclude that 70) A) both supply and demand increased. B) demand increased. C) supply decreased. D) demand decreased. 71) Assume that the initial […]
Chapter 4 3 Many Economists Estimate That For Every
145) A supply restriction on imported goods, such as the government’s restriction of imported oil for many years, is referred to as 145) A) an import quota. B) a price floor. C) a price ceiling. D) an export quota. 146) […]
Chapter 4 4 Pacific Northwest Were Relaxedc Prices Construction Materials
219) Rent controls primarily benefit 219) A) property owners. B) builders. C) people who already occupy rental units. D) people looking for rental units. 220) Rationing of resources, goods, and services 220) A) must be done by the government. B) […]
Chapter 4 5 After Memorial Day, the demand curve for gasoline
293) All of the following are examples of nonprice rationing devices EXCEPT 293) A) queues. B) waiting lists. C) price controls. D) black markets. 294) We cannot predict the effect on the market clearing price, but know that the equilibrium […]
Chapter 4 6 For Decrease Demand House Painters Canfind Similar
365) Prices in a market economy perform a rationing function because they reflect 365) A) the strength of the supply curve. B) the extent to which the goods are necessities. C) the relative scarcity of the goods. D) the demand […]
Chapter 5 1 Costs And Resources Are Vastly Different Each
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Government can correct for negative externalities by 1) A) allowing the market system to correct the problem. B) decreasing the costs to […]
Chapter 5 2 Government Subsidy Typically Used a Correct
75) Medicare is an example of a third–party payment for medical services that 75) A) does not cause any change in the equilibrium position for medical services which existed without the subsidy. B) causes providers to supply less of medical […]
Chapter 5 3 Smoke Often Cited Disadvantage
153) An example of a public good is 153) A) the car I own. B) the fire department. C) software produced by Microsoft. D) housing subsidies. 154) A situation in which a benefit or a cost associated with an economic […]
Chapter 5 4 Demand For The Chemical Solvents Will Decreasec
225) The amount of government spending on education per public school student has ________ since 1960, and the achievement level of students has generally ________ since that time. 225) A) increased; increased B) decreased; decreased C) decreased; increased D) increased; […]
Chapter 5 5 Which The Following Example Public
301) The free–rider problem is 301) A) the use of private goods in one state by residents of another state. B) that people cannot be forced to accept public goods. C) the incentive that people have once they are receiving […]
Chapter 5 6 The Similarities The Two Sectors Include The
349) Is there any common characteristic shared by government–inhibited goods and government–sponsored goods? Explain briefly. 350) Suppose a valley periodically floods. A dam can be built in the river that would prevent the flooding. Explain how flood control provided by […]
Chapter 6 1 Family Hasincome 30000 And Family Has Income
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A 5 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected […]
Chapter 6 2 Us Treasury Money Creation Private Borrowing Government
80) Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after–tax supply curve, then the revenues that the government collects from imposing this tax […]
Chapter 6 3 What Are The Three Sources Funding For
147) A state tax assessed specifically on cigarettes is an example of 147) A) a tariff. B) a social tax. C) a consumption tax. D) an excise tax. 148) The marginal tax rate is 148) A) total tax due/total taxable […]