Economics: Private and Public Choice 15th Edition

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978-1285453538
ISBN 10
1285453530
Authors
David A. Macpherson, James D. Gwartney, Richard L. Stroup, Russell S. Sobel
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246 documents found.
472208
Exam Prep
BUS 10924
If steel workers obtain a substantial wage increase, employment in the steel industry will be most likely to fall if a. the demand curve for steel is highly inelastic. b. the demand curve for steel is highly elastic. c. the demand curve for steel workers is highly inelastic. d. there are no good substitutes
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 17930
A good that takes up a very large percentage of the consumer's budget will tend to have a. an elastic demand. b. a perfectly elastic demand. c. an inelastic demand. d. an upward-sloping demand curve. e. very many substitutes. Answer: A Answer: A Answer: A The record of all transactions with foreign nations that involve the exchange of merchandise
Economics: Private and Public Choice 15th Edition
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BUS 26436
The GDP deflator is designed to adjust nominal GDP a. for changes in the unemployment rate. b. for changes in prices. c. for problems that arise because of externalities. d. for changes in interest rates. Answer: B Answer: B Answer: B Which of the following will limit the ability of a union to push the wages of its
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 26693
If scientific research produces a technological breakthrough in the production of computer memory, then a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits
Economics: Private and Public Choice 15th Edition
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BUS 28097
If the money interest rate is 7 percent and the inflationary premium 4 percent, the real interest rate is a. 3 percent. b. 3 percent. c. 4 percent. d. 7 percent. Answer: B Answer: B Answer: B Transfer payments are a. payments made to individuals who are employed by the government. b. payments made to individuals who provide goods and
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 35851 US GDP And US GNP Are
U.S. GDP and U.S. GNP are related as follows: a. GNP = GDP Income earned by foreigners in the U.S. + Income earned by U.S. citizens abroad. b. GNP = GDP + Income earned by foreigners in the U.S. Income earned by U.S. citizens abroad. c. GNP = GDP + Value of exported
Economics: Private and Public Choice 15th Edition
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BUS 39472
According to the theory of rational expectations, the government can influence output a. with appropriate fiscal and monetary policy. b. in the short run, but not in the long run. c. without affecting the price level. d. only by making unexpected changes that impact aggregate demand. Answer: D Answer: D Answer: D Which of the following will most
Economics: Private and Public Choice 15th Edition
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BUS 43426
When there is an abrupt increase in the rate of inflation, a. the actual rate of inflation will tend to fall below the natural rate. b. the actual rate of inflation will tend to rise above the natural rate. c. the actual and natural rate of inflation will generally be equal. d. the natural
Economics: Private and Public Choice 15th Edition
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BUS 46884
In response to the recession of 2008-2009, the fiscal policy of the federal government was a. highly expansionary, and this Keynesian stimulus promoted a rapid recovery. b. highly expansionary, but this was largely offset by the Fed's restrictive monetary policy c. highly restrictive, but this was largely offset by the Fed's highly expansionary
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 51542
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. At Q = 1,000, the firm's profit amounts to a. $200. b.
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 51757
When a country allows trade and becomes an importer of steel, a. the losses of the domestic producers of steel exceed the gains of the domestic consumers of steel. b. the losses of the domestic consumers of steel exceed the gains of the domestic producers of steel. c. the gains of the domestic
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 59761
Which of the following is most likely to reduce the nominal market wage in a job category? a. The job requires employees to work the night shift from 11 p.m. to 7 a.m. b. The job is prestigious, and the work is quite interesting. c. The job is widely viewed as dangerous. d. The
Economics: Private and Public Choice 15th Edition
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BUS 64610
When a country fixes the price of foreign exchange (in terms of the domestic currency) below equilibrium, which of the following will result? a. A black market will develop for foreign exchange. b. Residents of that country can buy as much foreign currency as they want. c. There will be a surplus of
Economics: Private and Public Choice 15th Edition
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BUS 66288
When commercial banks extend loans, they are able to expand the supply of money in the United States because the U.S. has a. a fiat supply of money. b. money that is backed by gold. c. a fractional reserve banking system. d. a system of federal deposit insurance. Answer: C Answer: C Answer: C Which of the following
Economics: Private and Public Choice 15th Edition
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BUS 67412
Use the figure below to answer the following question(s). Figure 9-2 The economy depicted in Figure 9-2 is a. operating at less than full employment. b. operating at more than full employment. c. in short-run equilibrium but not long-run equilibrium. d. in long-run equilibrium. Answer: D Answer: D Answer: D Which of the following is true? a. Economic freedom is present
Economics: Private and Public Choice 15th Edition
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BUS 68645
Which of the following is true? a. During any given year, the size of the economic pie available for allocation to individuals is fixed. b. When the link between worker productivity and reward is weakened, individuals have less incentive to create income. c. If they reduce income inequality, taxes and income transfers will
Economics: Private and Public Choice 15th Edition
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BUS 75429
Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that a. as more of a product is consumed, consumers will value additional units less. b. as more of a product is consumed, consumers
Economics: Private and Public Choice 15th Edition
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BUS 76735
An income tax is proportional if a. the tax liability of high-income earners exceeds the tax liability of those with low incomes. b. the tax liability of high-income earners is less than the tax liability of those with low incomes. c. high-income earners pay a higher percentage of their incomes in taxes than
Economics: Private and Public Choice 15th Edition
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Exam Prep
BUS 81195
Why might an expansion in government spending increase the severity of the coordination problem during a recession? a. Increases in government spending will not affect the composition of aggregate demand. b. Congress is unlikely to approve increases in government spending during a recession. c. Spending increases will be driven by political considerations and
Economics: Private and Public Choice 15th Edition
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BUS 85037
Countries that persistently expand the supply of money at a rapid rate can expect to experience a. high rates of inflation b. rapid economic growth. c. lower interest rates. d. low rates of unemployment. Answer: A Answer: A Answer: A A firm's stock price will be higher when the interest rate is ____ and the value of the
Economics: Private and Public Choice 15th Edition
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BUS 91228
Which of the following will decrease the demand for coffee? a. the discovery that caffeine can cause heart problems b. an increase in the price of coffee c. an increase in the price of tea, a substitute for coffee d. a decrease in the prices of coffee makers and coffee cups, complements to coffee Answer:
Economics: Private and Public Choice 15th Edition
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BUS 95698
If the U.S. price level decreased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves? a. the aggregate supply curve would shift outward and the aggregate demand curve would remain unchanged b. the aggregate supply curve would shift inward and the aggregate
Economics: Private and Public Choice 15th Edition
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BUS 97215
Which of the following actions would the Fed undertake if it wants to follow a more restrictive monetary policy? a. sell some of its holdings of government bonds b. decrease government expenditures c. urge the Treasury to sell more U.S. securities d. reduce the reserve requirements Answer: A Answer: A Answer: A The crowding-out effect refers to the
Economics: Private and Public Choice 15th Edition
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BUS 98159
Use the figure below to answer the following question(s). Figure 11-2 Refer to Figure 11-2. When the economy is operating at point a, reliance on the self-correcting mechanism will a. result in higher resource prices and a shift to the left in the SRAS curve. b. result in lower resource prices and a shift
Economics: Private and Public Choice 15th Edition
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Exam Prep
Chapter 1 Standby Passengers Airlines Who Pay Low
Economics Chapter 1The Economic Approach MULTIPLE CHOICE 1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond
Economics: Private and Public Choice 15th Edition
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Chapter 1 When Economists Use The Term Ceteris Paribus
c. They lose, because the gain of the passengers must necessarily come at the expense of the airline. d. They benefit as long as the additional revenue from the passengers exceeds the marginal cost. ANS: D PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC: Marginal costs &
Economics: Private and Public Choice 15th Edition
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Exam Prep
Chapter 10 Modera Test Disc Aggregate Demand And
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Aggregate demand and aggregate supply TOP: Unanticipated Changes and Market Adjustments KEY: Bloom's: Comprehension ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Aggregate demand and aggregate supply TOP: Unanticipated Changes and Market Adjustments KEY: Bloom's: Comprehension
Economics: Private and Public Choice 15th Edition
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Chapter 10 Suppose An Economy Is Currently Operating At Output Y1
155. In Figure 10-11, which of the following would most likely cause the movement from point E1 to point E2? a. an increase in the expected inflation rate b. a decrease in the expected inflation rate c. a major technological advance d. a temporary reduction in oil
Economics: Private and Public Choice 15th Edition
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Chapter 10 The Short Run Effects Favorable Supply Shock
Economics Chapter 10Dynamic Change, Economic Fluctuations, and the AD-AS Model MULTIPLE CHOICE 1. Which of the following would be most likely to cause an increase in current aggregate demand in the United States? a. increased fear that the U.S. economy was going into a recession b. an
Economics: Private and Public Choice 15th Edition
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Chapter 11 Disc Understanding And Applying
Economics Chapter 11Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics MULTIPLE CHOICE 1. Which of the following would a Keynesian economist be most likely to stress? a. Supply creates its own demand. b. Businesses will not produce goods and services if they do not
Economics: Private and Public Choice 15th Edition
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Chapter 11 Policy And The Good News Keynesian Economics Blooms
63. According to the Keynesian view, if an economy was operating at long-run equilibrium, an increase in government expenditures (holding taxes constant) would a. be inflationary. b. lead to a recession. c. lower the real rate of interest. d. reduce the size of the national debt. ANS:
Economics: Private and Public Choice 15th Edition
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Chapter 12 Measured Share Gdp The Borrowing The
81. Which of the following is an argument for tax cuts rather than government spending as a way to promote recovery from a recession? a. Tax cuts are better suited to direct resources into projects that consumers value more highly than the resources required for their production. b. 100
Economics: Private and Public Choice 15th Edition
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Chapter 12 Yes Long People Are Working Real Income
Economics Chapter 12Fiscal Policy, Incentives, and Secondary Effects MULTIPLE CHOICE 1. The crowding-out effect suggests that a. expansionary fiscal policy causes inflation. b. restrictive fiscal policy is an effective weapon against inflation. c. a reduction in private spending that results from higher interest rates caused by a
Economics: Private and Public Choice 15th Edition
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Chapter 13 The Fed Must Receive A Budget Allocation From Congress Before It Can Write A Check
Economics Chapter 13Money and the Banking System MULTIPLE CHOICE 1. Money is a. valuable because it is backed by gold. b. whatever is generally accepted in exchange for goods and services. c. anything that is a liability of a commercial bank d. an object to be consumed.
Economics: Private and Public Choice 15th Edition
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Chapter 13 The Role Money Key Blooms
b. approximately doubled the M1 money supply. c. approximately doubled the monetary base. d. maintained the monetary base at a constant level. ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Monetary and fiscal policy TOP: The Federal Reserve System KEY: Bloom's: Comprehension ANS: C PTS:
Economics: Private and Public Choice 15th Edition
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Chapter 13 Us Securities Force The Treasury Reduce The
STA: DISC: Monetary and fiscal policy TOP: The Federal Reserve System KEY: Bloom's: Comprehension 102. Which of the following is primarily responsible for controlling the money supply in the United States? a. the U.S. Congress b. the Board of Governors of the Federal Reserve System c. the U.S.
Economics: Private and Public Choice 15th Edition
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Chapter 14 Affect The Economy Key Blooms Comprehension
Economics Chapter 14Modern Macroeconomics and Monetary Policy MULTIPLE CHOICE 1. The velocity of money is a. the rate at which the price index for consumer goods rises. b. the multiple by which an increase in government expenditures will cause output to rise. c. set by the Board
Economics: Private and Public Choice 15th Edition
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Chapter 14 Monetary And Fiscal Policy Key
the growth rate of the M1 money supply d. A reduction in the monetary base, lower short-term interest rates, and a decline in the growth rate of the M2 money supply ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Monetary and fiscal policy TOP: Recent
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Chapter 14 Which The Following Would Most Indicative
a. large budget deficits. b. high taxes. c. rapid expansion of the money supply. d. government expenditures that are large relative to the size of the economy. ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Monetary and fiscal policy TOP: Monetary Policy in the Long
Economics: Private and Public Choice 15th Edition
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Chapter 15 Expectations Formed 41 Suppose The Inflation Rate Country
Economics Chapter 15Stabilization Policy, Output, and Employment MULTIPLE CHOICE 1. In the twentieth century, fluctuations in real GDP were a. less severe during the last 50 years than was true during the first half of the century. b. virtually eliminated as the result of the countercyclical application
Economics: Private and Public Choice 15th Edition
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Chapter 15 Phillips Curve The View The 1960s Versus
c. inflation turns out to be higher than what people expected. d. inflation turns out to be equal to what people expected. ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Monetary and fiscal policy TOP: The Phillips Curve: The View of the 1960s Versus Today
Economics: Private and Public Choice 15th Edition
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Chapter 16 Argentina And Venezuela Were 
Economics Chapter 16Creating an Environment for Growth and Prosperity MULTIPLE CHOICE 1. Economic growth is important because expansion in the output of goods and services a. necessarily creates more jobs (more work for people). b. makes it possible for individuals to consume more and achieve higher living
Economics: Private and Public Choice 15th Edition
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Chapter 16 What Institutions And Policies Will Promote Growth 
67. Which of the following would be most likely to enhance the growth rate of an economy? a. imposition of a quota restricting the quantity of steel imports b. gradual elimination of all tariffs over the next 10 years c. legislation limiting the number of hours employees can
Economics: Private and Public Choice 15th Edition
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Chapter 17 According The Economic Freedom The World
a. Japan and Italy b. Nigeria and Pakistan c. Sierra Leone and Zimbabwe d. Estonia and Hungary ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: International trade and finance TOP: Origins of Institutions KEY: Bloom's: Comprehension ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic
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Chapter 17 World Index Measure The Consistency Nations Institutions And
Economics Chapter 17Institutions, Policies, and Cross-Country Differences in Income and Growth MULTIPLE CHOICE 1. The purchasing power parity method of comparing income levels across countries a. calculates the cost of purchasing a common bundle of goods in each country and then uses this price index to convert
Economics: Private and Public Choice 15th Edition
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Chapter 18 Easy Disc International Trade And Finance Why Nations Adopt
c. Q4 Q3. d. Q4 Q3 + Q2 Q1. ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: International trade and finance TOP: The Economics of Trade Restrictions KEY: Bloom's: Analysis MSC: Graphics Questions ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: International
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Chapter 18 The Sale Of A Good By A Foreign Supplier In Another Country At
89. Which of the following is a partially valid economic argument for restricting free trade? a. Restrictions on foreign trade will increase employment and permanently reduce unemployment. b. Infant industries may need temporary protection to develop and gain productive efficiency. c. A nation needs to protect its national defense;
Economics: Private and Public Choice 15th Edition
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Chapter 18 Trade Restrictions Like Tariffs And Quotas Will
Economics Chapter 18Gaining from International Trade MULTIPLE CHOICE 1. Measured as a share of the economy, the size of the trade sector (exports plus imports) of the United States has a. been increasing since 1980, but it declined during 1960-1980. b. been relatively constant during the last
Economics: Private and Public Choice 15th Edition
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Chapter 19 Both And Are Trued Both
d. tend to increase if the nation is running a balance of trade surplus and decrease if it is running a balance of trade deficit. ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: International trade and finance TOP: Balance of Payments KEY: Bloom's: Comprehension ANS:
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Chapter 19 Under System Flexible Exchange Rates The
Economics Chapter 19International Finance and the Foreign Exchange Market MULTIPLE CHOICE 1. A depreciation in the value of the U.S. dollar would a. encourage foreigners to travel on American owned airlines. b. make U.S. goods more expensive to foreign consumers. c. decrease the number of dollars it
Economics: Private and Public Choice 15th Edition
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Chapter 2 Crusoe Should Specialize In Producing Good Y
ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Gains from trade, specialization and trade TOP: Trade, Output, and Living Standards KEY: Bloom's: Application ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Gains from trade, specialization and trade TOP: Trade, Output, and Living Standards KEY:
Economics: Private and Public Choice 15th Edition
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Chapter 2 Refer Table 23 The Opportunity Cost
d. cause an economy to move from one point on the production possibilities curve to another point on the curve. ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Costs of production TOP: Production Possibilities Curve KEY: Bloom's: Comprehension ANS: A PTS: 1 DIF: Moderate NAT:
Economics: Private and Public Choice 15th Edition
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Chapter 2 The Citizens Country Were Work Harder
Economics Chapter 2 ASome Tools of the Economist MULTIPLE CHOICE 1. Which of the following sayings best reflects the concept of opportunity cost? a. "You can't teach an old dog new tricks." b. "Time is money." c. "I have a baker's dozen." d. "There's no business like
Economics: Private and Public Choice 15th Edition
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Chapter 2 The Opportunity Cost Of Growing Oranges Is Higher In
Economics Chapter 2 BSome Tools of the Economist MULTIPLE CHOICE 181. Melanie decided to sleep in today rather than attend her 9 a.m. economics class. According to economic analysis, her choice was a. irrational, because economic analysis suggests you should always attend classes that you have already
Economics: Private and Public Choice 15th Edition
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Chapter 20 If Demand Is Inelastic, An Increase In The Price Of A Good Will
d. increase tuition, which would generate more revenue. ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Elasticity TOP: How Demand Elasticity and Price Changes Affect Total Expenditures (or Revenues) on a Product KEY: Bloom's: Comprehension ANS: D PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA:
Economics: Private and Public Choice 15th Edition
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Chapter 20 Recent Study Enrollment Liberal Arts College
Economics Chapter 20Consumer Choice and Elasticity MULTIPLE CHOICE 1. If Santiago thinks the last dollar spent on jeans yields less satisfaction than the last dollar spent on shoes, and Santiago is a utility-maximizing consumer, he should a. decrease his spending on shoes. b. decrease his spending on
Economics: Private and Public Choice 15th Edition
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Chapter 20 Smith Utility Maximizing Consumer Shoulda Decrease His Spending
141. Figure 7-10 depicts a demand curve with a price elasticity that is a. unitary, implying that a percent change in price leads to an equal percent change in quantity demanded. b. perfectly inelastic, implying that the same amount will be purchased regardless of the price
Economics: Private and Public Choice 15th Edition
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Chapter 21 And Curves Upward The Full Amount
154. At what output does the firm depicted in Figure 8-6 begin to experience diminishing marginal returns to its variable factors of production? a. q1 b. q2 c. q3 d. an output beyond q3 ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC:
Economics: Private and Public Choice 15th Edition
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Chapter 21 Firm Has Ushaped Long Run Average Cost
Economics Chapter 21Costs and the Supply of Goods MULTIPLE CHOICE 1. Which of the following is most likely to be an implicit cost of production? a. property taxes on a building owned by the firm b. transportation costs paid to a trucking supplier c. rental payments for
Economics: Private and Public Choice 15th Edition
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Chapter 21 Mr Capps Shoulda Shut Down Since Experiencing
c. it must have increasing returns to each input at low levels of production and decreasing returns to each input at high levels of production. d. the firm can maximize its output by operating at the point of minimum long-run average cost. ANS: B PTS: 1 DIF: Moderate
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Chapter 22 Disc Supply And Demand Key Blooms Evaluation
Economics Chapter 22 BPrice Takers and the Competitive Process MULTIPLE CHOICE 186. Competitive price-taker markets are characterized by a. low entry barriers and a large number of firms selling a homogeneous product. b. intense rivalry among firms selling differentiated products. c. quality competition among firms and a
Economics: Private and Public Choice 15th Edition
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Chapter 22 Figure 92 Illustrates Firm Capable Earning
93. The supply curve of a price-taker firm in the short run is the a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable
Economics: Private and Public Choice 15th Edition
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Chapter 22 The Average Total Cost Atc And Marginal
ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: The Firm's Short-Run Supply Curve KEY: Bloom's: Application MSC: Graphics Questions ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: The Firm's Short-Run Supply Curve KEY: Bloom's: Application MSC:
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Chapter 22 The Firm Sells Its Output For 12 Per
Economics Chapter 22 APrice Takers and the Competitive Process MULTIPLE CHOICE 1. Which of the following is a primary difference between price searchers and price takers? a. Price searchers maximize profits, but price takers do not. b. Price searchers have to cut their price to sell additional
Economics: Private and Public Choice 15th Edition
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Chapter 23 As Long As A Market Is Contestable, Then Even If
Economics Chapter 23Price-Searcher Markets with Low Entry Barriers MULTIPLE CHOICE 1. In a competitive price-searcher market, the firms will a. be able to choose their price, and the entry barriers into the market will be low. b. be able to choose their price, and the entry barriers
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Chapter 23 Increase Total Revenue By Charging Higher Prices To Those
96. A price-discriminating firm charges the lowest price to the group that a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes. ANS: A PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC:
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Chapter 23 Which Of The Graphs Shown Would Be Consistent With A Firm 
140. Given that the short-run cost and demand conditions shown in Figure 10-6 for the competitive price-searcher firm are representative for all firms in the industry, what will happen in this industry in the long run? a. The firm will make long-run economic profits. b. The
Economics: Private and Public Choice 15th Edition
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Chapter 24 Cartel Agreements Are Difficult Maintain Because
Economics Chapter 24 APrice-Searcher Markets with High Entry Barriers MULTIPLE CHOICE 1. When economists talk about a barrier to entry, they are referring to a. a factor that makes it difficult for potential competitors to enter a market. b. the opportunity cost of equity capital that is
Economics: Private and Public Choice 15th Edition
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Chapter 24 If Entry-restricting Legal Barriers Effectively
ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Oligopoly TOP: Price and Output Under Oligopoly KEY: Bloom's: Comprehension ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Oligopoly TOP: Price and Output Under Oligopoly KEY: Bloom's: Comprehension ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG:
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Chapter 24 Which Of The Following Statements About Monopoly Is Most Accurate?
Economics Chapter 24 BPrice-Searcher Markets with High Entry Barriers MULTIPLE CHOICE 189. Licensing is a process in which a firm wanting to enter a market must a. require all potential customers to obtain government permission to purchase the product. b. notify the government within a certain period
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Chapter 24 Without Collusion, Price And Outputs Are Indicated By Point
151. The demand and cost conditions in an industry are as depicted in Figure 11-7. In the viewpoint of economic efficiency, what would the ideal price and output be? a. price, $7; quantity produced, 100 b. price, $10; quantity produced, 170 c. price, $14; quantity produced, 100
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Chapter 25 Economics The Supply And Demand For
Economics Chapter 25The Supply of and Demand for Productive Resources MULTIPLE CHOICE 1. The demand curve for a human resource will be more elastic when a. there are more and better substitutes are available for it. b. it is more difficult to substitute other resources for it.
Economics: Private and Public Choice 15th Edition
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Chapter 25 What Happens To Labor Supply In The Pear-picking
a. 4 b. 5 c. 6 d. 7 ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: Marginal Productivity and the Firm's Hiring Decision KEY: Bloom's: Analysis ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP:
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Chapter 26 When Employment Discrimination Results From The Personal
Economics Chapter 26Earnings, Productivity, and the Job Market MULTIPLE CHOICE 1. If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most a. prestigious. b. convenient. c. undesirable. d. easily learned. ANS: C
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Chapter 27 If These Conditions Are Expected To Continue Year After Year Into The Future
Economics Chapter 27Investment, the Capital Market, and the Wealth of Nations MULTIPLE CHOICE 1. Which of the following is true of saving and investment? a. There is no relationship between saving and investment; people can invest without having to save. b. Saving and investment can never be
Economics: Private and Public Choice 15th Edition
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Chapter 27 Important 81 The Experience The Former Soviet Bloc
b. assembly-line workers to be lower than that of persons in other professions. c. assembly-line workers and that of persons in other professions to be nonetheless equal. d. both assembly-line workers and persons in other professions to be unaffected by the subjective preferences of investors. ANS: A PTS:
Economics: Private and Public Choice 15th Edition
669017
Exam Prep
Chapter 28 Country Has More Equal Income Distribution Than
ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Measuring the Economy TOP: Poverty in the United States KEY: Bloom's: Comprehension ANS: A PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Measuring the Economy TOP: Poverty in the United States KEY: Bloom's: Comprehension ANS: A PTS:
Economics: Private and Public Choice 15th Edition
669014
Exam Prep
Chapter 28 Which The Following Limits The Ability
Economics Chapter 28Income Inequality and Poverty MULTIPLE CHOICE 1. In 2010, high-income families (the top 20 percent) in the United States earned approximately ____ percent of the total before-tax income. a. 34 b. 48 c. 62 d. 79 ANS: B PTS: 1 DIF: Moderate NAT:
Economics: Private and Public Choice 15th Edition
668811
Exam Prep
Chapter 3 How Will Reduction The Price Cotton
a. increase the price of salsa. b. decrease the demand for salsa. c. increase the demand for salsa. d. have no effect on the demand for salsa. ANS: B PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: Changes in Demand Versus Changes in
Economics: Private and Public Choice 15th Edition
668823
Exam Prep
Chapter 3 Sport Utility Vehicles That Consume Lot Of Gasoline
ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: Consumer Choice and the Law of Demand KEY: Bloom's: Application MSC: Graphics Questions ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: Consumer Choice and the Law of Demand
Economics: Private and Public Choice 15th Edition
668817
Exam Prep
Chapter 3 Supply And Demand Simultaneously Increased And The
Economics Chapter 3 BDemand, Supply, and the Market Process MULTIPLE CHOICE 197. Suppose prices for new homes have risen and sales of new homes have also risen. We can conclude that a. the demand for new homes has risen. b. the law of demand has been violated.
Economics: Private and Public Choice 15th Edition
668820
Exam Prep
Chapter 3 The Cost To Sellers Is Equal To The Value To Buyers
KEY: Bloom's: Application MSC: Graphics Questions 268. Given the demand (D) and supply (S) for gasoline in Figure 3-9, if the price of gasoline were $3 per gallon, a. consumers would wish to purchase more than was being supplied. b. producers would be supplying more than consumers wished
Economics: Private and Public Choice 15th Edition
668814
Exam Prep
Chapter 3 When Economists Say Activity Consistent With
d. The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the right. ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: Changes in Supply versus Changes in Quantity Supplied KEY: Bloom's: Application ANS:
Economics: Private and Public Choice 15th Edition
668808
Exam Prep
Chapter 3 When The Market For A Good Is In Equilibrium
Economics Chapter 3 ADemand, Supply, and the Market Process MULTIPLE CHOICE 1. Which of the following would most likely increase the demand for peanut butter? a. a decrease in the price of jelly, a good that is often used with peanut butter b. the discovery that excessive
Economics: Private and Public Choice 15th Edition
668837
Exam Prep
Chapter 4 Consumer Surplus Before The Tax Was Levied Is Represented By Area
b. market (b) c. market (c) d. All of the above are correct. ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: The Impact of a Tax KEY: Bloom's: Analysis MSC: Graphics Questions ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG:
Economics: Private and Public Choice 15th Edition
668829
Exam Prep
Chapter 4 The Change In Tax Liability Divided By The Change In
overweight. b. loss from the elimination of mutually beneficial exchanges that results from the imposition of a tax in a market. c. difference between the value consumers place on a good and the price they have to pay for it. d. reduction in consumer welfare that occurs when the firms
Economics: Private and Public Choice 15th Edition
668835
Exam Prep
Chapter 4 The Question Who Sends The Tax Payments
Economics Chapter 4 BSupply and Demand: Applications and Extensions MULTIPLE CHOICE Figure 4-14 191. Figure 4-14 depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true? a. In equilibrium, the quantity demanded
Economics: Private and Public Choice 15th Edition
668826
Exam Prep
Chapter 4 The Term Deadweight Loss Excess Burden
Economics Chapter 4 ASupply and Demand: Applications and Extensions MULTIPLE CHOICE 1. Other things constant, a decrease in the demand for hair dryers will a. increase the price of hair dryers. b. increase the quantity supplied of hair dryers. c. increase the demand for hair dryer manufacturing
Economics: Private and Public Choice 15th Edition
668832
Exam Prep
Chapter 4 What Does The Triangular Area ABC Represent?
159. Figure 4-1 illustrates the market for compact discs. If the government imposes a price floor of $25 for compact discs, which of the following will be true? a. Consumers would wish to purchase 1,000 compact discs. b. Producers would wish to sell 5,000 compact discs. c. There would
Economics: Private and Public Choice 15th Edition
668842
Exam Prep
Chapter 5 Figure 54 The Government Uses Pollution Tax
d. deadweight loss problem. ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Markets, market failure, and externalities TOP: The Potential Shortcomings of the Market KEY: Bloom's: Comprehension ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Markets, market failure, and externalities TOP: The
Economics: Private and Public Choice 15th Edition
668839
Exam Prep
Chapter 5 The Pollution Will Created Those Least Willing
Economics Chapter 5Difficult Cases for the Market and the Role of Government MULTIPLE CHOICE 1. Which of the following is the most fundamental function of government? a. protection of individuals and their property b. imposing progressive taxes to fund income-transfer programs c. regulating prices and wages d.
Economics: Private and Public Choice 15th Edition
668845
Exam Prep
Chapter 6 Economics The Economics Political Action Multiple Choice1
Economics Chapter 6The Economics of Political Action MULTIPLE CHOICE 1. In 2012, the combined expenditures of federal, state, and local governments in the United States were approximately a. 9 percent of GDP. b. 24 percent of GDP. c. 38 percent of GDP. d. 45 percent of GDP.
Economics: Private and Public Choice 15th Edition
668848
Exam Prep
Chapter 6 Logrolling Refers Toa Vote Trading Among
81. Logrolling refers to a. vote trading among legislators. b. the tendency of voters to free-ride on the payment for public goods. c. the power of well-organized interest groups. d. the tendency of legislators to favor the interests of the timber (logging) industry. ANS: A PTS:
Economics: Private and Public Choice 15th Edition
668855
Exam Prep
Chapter 7 Between 1991 And 2008 The Federal
91. Which of the following is a deficiency of the regular (or traditional) consumer price index (CPI) as a measure of the cost of living? a. The CPI fails to make any adjustment for changes in the price of housing. b. The CPI only measures changes in the prices
Economics: Private and Public Choice 15th Edition
668852
Exam Prep
Chapter 7 Suppose That The Nominal Value Of GDP Increased By
Economics Chapter 7 ATaking the Nation's Economic Pulse MULTIPLE CHOICE 1. Which of the following would be included in this year's GDP? a. the value of a used car, at its sale price b. the value of a new domestic automobile, at its sale price c. a
Economics: Private and Public Choice 15th Edition
668858
Exam Prep
Chapter 7 Which The Following Expresses Gdp For 2008
ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Measuring the Economy TOP: Adjusting for Price Changes and Deriving Real GDP KEY: Bloom's: Application ANS: C PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Measuring the Economy TOP: Adjusting for Price Changes and Deriving Real GDP
Economics: Private and Public Choice 15th Edition
668861
Exam Prep
Chapter 7 Your Grandfather Tells You That Earned
Economics Chapter 7 BTaking the Nation's Economic Pulse MULTIPLE CHOICE 188. Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the a. general happiness of a country's citizens. b. course of the economy and the direction of demand for
Economics: Private and Public Choice 15th Edition
668864
Exam Prep
Chapter 8 Panama Unemployment Percent And Labor Force Participation
Economics Chapter 8Economic Fluctuations, Unemployment, and Inflation MULTIPLE CHOICE 1. Over the past century, the growth rate of real GDP in the United States has averaged approximately a. 1 percent. b. 3 percent. c. 6 percent. d. 10 percent. ANS: B PTS: 1 DIF: Easy
Economics: Private and Public Choice 15th Edition
668867
Exam Prep
Chapter 8 Which The Following True Anticipated Inflation Increase
100. In a modern dynamic economy such as the United States, full employment generally means a. cyclical unemployment is present. b. everyone (excluding teenagers) that would like to work is employed. c. approximately 95 percent of the labor force is employed. d. 100 percent of the labor force
Economics: Private and Public Choice 15th Edition
668875
Exam Prep
Chapter 9 Net Capital Outflow Is Positive
ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Markets, market failure, and externalities TOP: Foreign Exchange Market KEY: Bloom's: Application ANS: B PTS: 1 DIF: Moderate NAT: BUSPROG: Analytic STA: DISC: Markets, market failure, and externalities TOP: Foreign Exchange Market KEY: Bloom's: Application ANS: B PTS: 1
Economics: Private and Public Choice 15th Edition
668869
Exam Prep
Chapter 9 Suppose The Nominal Interest Rate Was
Economics Chapter 9 AAn Introduction to Basic Macroeconomic Markets MULTIPLE CHOICE 1. Which of the following is a correct statement? a. Fiscal policy is the use of tax and spending policies by Congress and the president. b. Fiscal policy involves the control of the money supply by
Economics: Private and Public Choice 15th Edition
668878
Exam Prep
Chapter 9 The Aggregate Demand Curve Slopes Downward Because
Economics Chapter 9 BAn Introduction to Basic Macroeconomic Markets MULTIPLE CHOICE 197. The macroeconomy is said to be in long-run equilibrium only if a. the resource, loanable funds, foreign exchange, and goods and services markets are all in equilibrium. b. prices were incorrectly estimated by decision makers.
Economics: Private and Public Choice 15th Edition
668872
Exam Prep
Chapter 9 Which The Following Would Generate Supply
b. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 1.5 percent. c. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 5 percent. d. The dollar value of savings
Economics: Private and Public Choice 15th Edition
472248
Exam Prep
ECB 11311
Other things constant, an increase in consumer income will a. shift the demand curve for automobiles to the left. b. shift the demand curve for automobiles to the right. c. cause a movement along the demand curve for automobiles, but it will not shift the demand curve. d. lead to a reduction in the
Economics: Private and Public Choice 15th Edition
472232
Exam Prep
ECB 15569
In economics, man-made resources such as tools, equipment, and structures that are used to produce other goods and services are referred to as a. consumer goods. b. capital. c. marginal goods. d. infrastructures. Answer: B Answer: B Answer: B A reserve requirement of 20 percent implies a potential money deposit multiplier of a. 4. b. 5. c. 20. d. 25. Answer: B Answer: B Answer:
Economics: Private and Public Choice 15th Edition
472282
Exam Prep
ECB 27108
Even countries that depend primarily on market forces to resolve the basic economic questions will usually rely on the collective decision-making process to a. determine the prices of goods and resources. b. allocate goods that are essential to life. c. determine the distribution of income among citizens. d. define and enforce private-property rights and
Economics: Private and Public Choice 15th Edition
472316
Exam Prep
ECB 28052
When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions a. decreases the money supply by $1,000. b. decreases the money supply by $200. c. does not change the money supply. d.
Economics: Private and Public Choice 15th Edition
472182
Exam Prep
ECB 32909
People are willing to pay more for a diamond than for a bottle of water because a. the marginal cost of producing an extra diamond far exceeds the marginal cost of producing an extra bottle of water. b. the marginal benefit of an extra diamond far exceeds the marginal benefit of an
Economics: Private and Public Choice 15th Edition
472209
Exam Prep
ECB 35416
Which of the following is true of the per person income of the West (Western Europe and its offshoots of the United States, Canada, Australia, and New Zealand) a. It has increased each century and grown steadily since 1500. b. It is now approximately 20 times greater than the figure of 200
Economics: Private and Public Choice 15th Edition
472261
Exam Prep
ECB 37932
A profit-maximizing price searcher will expand output to the point where a. total revenue equals total cost. b. marginal revenue equals marginal cost. c. price equals average total cost. d. price equals marginal cost. Answer: B Answer: B Answer: B The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more
Economics: Private and Public Choice 15th Edition
472292
Exam Prep
ECB 39870
Property right enforcement and markets can be imperfect, so environmental regulations are often used to correct market failures that result in environmentaldamages. But governmental regulation itself can be imperfect because a. both environmental harms and the benefits of reducing them are uncertain and difficult to measure. b. regulation overrides the market, and
Economics: Private and Public Choice 15th Edition
472333
Exam Prep
ECB 46570
Countries with more economic freedom tend to invest a ____ share of their GDP and the productivity of that investment is ____ than for countries that are less free. (Fill in the blanks.) a. larger; higher b. larger; lower c. smaller; higher d. smaller; lower Answer: A Answer: A Answer: A If firms in competitive price-searcher markets are
Economics: Private and Public Choice 15th Edition
472243
Exam Prep
ECB 52113
Which of the following will most likely result from an unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas? a. a decrease in inflation b. a decrease in unemployment c. a decrease in the general level of prices d. an increase in the general level of prices Answer: D Answer: D Answer: D The
Economics: Private and Public Choice 15th Edition
472239
Exam Prep
ECB 54382
If the supply of a good decreased, what would be the effect on the equilibrium price and quantity? a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase. Answer: A Answer: A Answer: A If there is
Economics: Private and Public Choice 15th Edition
472231
Exam Prep
ECB 60378
Other things being equal, the effect of a decrease in the price of grapes would be illustrated by a. a rightward shift in the demand curve for grapes. b. an increase in the quantity demanded for grapes. c. a leftward shift in the demand curve for grapes. d. a decrease in the quantity demanded
Economics: Private and Public Choice 15th Edition
472195
Exam Prep
ECB 69869
If an economy is at its potential output level, which of the following is not true? a. The economy is at its full-employment output level. b. Unemployment is at the natural level. c. The price level is zero. d. The output level being produced can be sustained indefinitely given the economy's resources and technology. e.
Economics: Private and Public Choice 15th Edition
472189
Exam Prep
ECB 71892
Which of the following factors would be most likely to encourage capital formation in a less-developed nation? a. high and variable rates of inflation b. tariffs and quotas that restrict international trade c. a legal system that provides for secure property rights and even-handed enforcement of contracts d. high marginal tax rates Answer: C Answer: C Answer: C In
Economics: Private and Public Choice 15th Edition
472309
Exam Prep
ECB 77376
After a natural disaster, such as a hurricane, the increased demand for certain items (like lumber, electric generators, and chainsaws) causes their prices to rise. These higher prices a. discourage the flow of these items into the area. b. encourage consumers to purchase the items even if they do not plan to use
Economics: Private and Public Choice 15th Edition
472264
Exam Prep
ECB 83483
Retired persons travel by bus and automobile more frequently than do business executives, who more commonly use air travel. An economic explanation for this would be that a. business executives have more time to travel. b. it is more important for retired persons to save time. c. business executives value their time more highly. d.
Economics: Private and Public Choice 15th Edition
472207
Exam Prep
ECB 88857
Suppose the economy is initially in long-run equilibrium and aggregate demand rises. In the long run prices a. and output are higher than in the original long-run equilibrium. b. and output are lower than in the original long-run equilibrium. c. are higher and output is the same as the original long-run equilibrium. d. are
Economics: Private and Public Choice 15th Edition
472324
Exam Prep
ECB 93348
Figure 3-15 Refer to Figure 3-15. When the price rises from P1 to P2, which area represents the increase in producer surplus to existing producers? a. BCE b. ACF c. DEF d. ABED Answer: D Answer: D Answer: D Interest rates in the loanable funds market vary with respect to a. your rate of time preference. b. risk. c. expected inflation. d. all
Economics: Private and Public Choice 15th Edition
472297
Exam Prep
ECB 97429
The real wages of workers will tend to be high when a. output per worker is high. b. capital is scarce. c. industries are automating at a slow rate. d. profits are low. Answer: A Answer: A Answer: A The actual rate of unemployment will generally a. increase as an economy enters an economic boom period. b. decrease as an
Economics: Private and Public Choice 15th Edition
472340
Exam Prep
ECON 10071
How did the Fed's conduct of open market operations change during the economic crisis of 2008? a. Open market operations are no longer the most common tool that the Fed utilizes. b. The Fed now buys and sells a broader range of assets than only government securities. c. The Federal Open Market Committee cannot
Economics: Private and Public Choice 15th Edition
472251
Exam Prep
ECON 15311
The new classical view of fiscal policy holds that a. budget deficits will stimulate consumption. b. budget deficits will decrease the saving rate. c. individuals fail to recognize that debt-financing implies higher future taxes. d. individuals fully anticipate the added tax liability implied by the debt financing and will increase their saving so they
Economics: Private and Public Choice 15th Edition
472260
Exam Prep
ECON 22869
Which of the following will be most likely to contribute to the growth of a less-developed country? a. price controls that keep the cost of agricultural products low b. rapid population growth c. exchange rate controls and export restrictions d. secure property rights and low marginal tax rates Answer: D Answer: D Answer: D Fiscal policy designed to
Economics: Private and Public Choice 15th Edition
472276
Exam Prep
ECON 27036
A strike, or the threat of one, is most likely to be effective when a. demand for the firm's product is strong. b. foreign competition for the product is high. c. the firm has a high product inventory. d. demand for the product produced by the union workers is highly elastic. Answer: A Answer: A Answer: A Suppose
Economics: Private and Public Choice 15th Edition
472327
Exam Prep
ECON 27864
An expansionary monetary policy is most likely to produce an inflationary effect with little impact on output when the economy a. is near full employment and the short-run aggregate supply curve is flat. b. is near full employment and the short-run aggregate supply curve is steep. c. has substantial unemployment and the short-run
Economics: Private and Public Choice 15th Edition
472238
Exam Prep
ECON 34939
Each point on the demand curve indicates a. the demand for the product. b. the quantity demanded at that price. c. the amount that people need. d. the amount people want to buy at different income levels. Answer: B Answer: B Answer: B A decrease in the price of leather used to make shoes would cause the a. demand
Economics: Private and Public Choice 15th Edition
472310
Exam Prep
ECON 35583
When a conflict arises in a major oil-exporting area of the world, such as the Middle East, the price of gasoline already in the storage tanks at local gas stations usually increases. Which of the following best explains this occurrence? a. Gas station owners anticipate consumers will buy more gasoline as
Economics: Private and Public Choice 15th Edition
472294
Exam Prep
ECON 37525
According to the Keynesian view, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would a. slow the recovery process and result in weak long-term growth of real GDP. b. speed the recovery process and provide the foundation for strong long-term growth of real
Economics: Private and Public Choice 15th Edition
472321
Exam Prep
ECON 41604
Which of the following would help control the future growth of healthcare prices and expenditures? a. an increase in the share of healthcare costs paid for either directly or from personal medical savings accounts b. the substitution of catastrophic (high deductibility) health insurance for low co-payment plans c. more reliance on expansion in
Economics: Private and Public Choice 15th Edition
472331
Exam Prep
ECON 43592
When earnings differentials are adjusted for such factors as age, education, and marital status, the a. differential between the earnings of white males and those of minority males increases. b. differential between the earnings of white males and those of minority males decreases. c. corrected earnings of minority males are equal to those
Economics: Private and Public Choice 15th Edition
472234
Exam Prep
ECON 54319
Figure 18-3 Figure 18-3 displays the international currency market for yen in terms of dollars and dollars in terms of yen. The supply curve in graph (B) is comprised of a. U.S. citizens attempting to purchase Japanese-made goods. b. Japanese attempting to purchase U.S.-made goods. c. U.S. businesses attempting to sell to the Japanese. d.
Economics: Private and Public Choice 15th Edition
472305
Exam Prep
ECON 58159
One difficulty of computing the value of GDP is that there are no market prices for a. exports and imports. b. business investments. c. government goods and services. d. resource values. Answer: C Answer: C Answer: C Which of the following is characteristic of a firm that is a competitive price searcher? a. The firm faces an upward-sloping demand
Economics: Private and Public Choice 15th Edition
472269
Exam Prep
ECON 59215
Which of the following is a normative economic statement? a. If we doubled the size of welfare payments, we would reduce the number of homeless persons. b. Companies should be concerned with more than just their profits. c. An increase in spending on airport security will reduce the number of hijackings. d. If social
Economics: Private and Public Choice 15th Edition
472229
Exam Prep
ECON 59569
When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the a. firm's cost of producing electricity will be higher than the community's true opportunity cost. b. firm will tend to produce too little electricity from the
Economics: Private and Public Choice 15th Edition
472247
Exam Prep
ECON 60267
Figure 3-22 Refer to Figure 3-22. Suppose the events depicted in graphs A and C were illustrated together on a single graph. A definitive result of the two events would be a. an increase in the equilibrium quantity. b. an increase in the equilibrium price. c. an instance in which the law of demand
Economics: Private and Public Choice 15th Edition
472222
Exam Prep
ECON 63327
If coal and oil are substitute inputs in the production of electricity, an increase in the price of oil a. will increase the demand for coal. b. will reduce the demand for coal. c. will increase the supply of coal. d. will reduce the supply of coal. e. will not affect the demand for coal. Answer:
Economics: Private and Public Choice 15th Edition
472267
Exam Prep
ECON 63331
Compared to low-income families, a larger proportion of high-income families a. is headed by a person with a college degree. b. has both a husband and a wife who work full time. c. is headed by a person between the ages of 35 and 64. d. is all of the above. Answer: D Answer: D Answer: D A
Economics: Private and Public Choice 15th Edition
472334
Exam Prep
ECON 63381
If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that a. the total expenditures (including those made by the third party) on the good will decline. b. the demand for the good will decrease. c. consumers will have a stronger incentive to
Economics: Private and Public Choice 15th Edition
472249
Exam Prep
ECON 65542
Which of the following is true? a. In a competitive capital market, private investors have a strong incentive to evaluate projects carefully and allocate their funds toward those projects expected to yield the highest rates of return. b. In a competitive environment, profitable investment projects will tend to increase the wealth of
Economics: Private and Public Choice 15th Edition
472211
Exam Prep
ECON 66442
Economic analysis indicates that growth in the size of government as a share of the economy will a. always reduce economic growth and reduce the living standards of the citizenry. b. enhance economic growth and lead to higher income levels as it becomes larger and larger. c. initially promote growth as the government
Economics: Private and Public Choice 15th Edition
472206
Exam Prep
ECON 68052
When a park is funded by visitors, but not by taxpayers in general, a. there will be too few parks because most people simply will not pay to use a park. b. visitors will be better served because poor service would lead to reductions in revenues. c. maintenance in the park will suffer
Economics: Private and Public Choice 15th Edition
472235
Exam Prep
ECON 72276
Economic analysis indicates that the monetary policy of the 1930s, which shifted back and forth between restrictive monetary policy and expansionary monetary policy, would likely result in a. economic stability and growth in real levels of output. b. keeping the general level of prices relatively stable because the periods of restrictive policy would
Economics: Private and Public Choice 15th Edition
472230
Exam Prep
ECON 75504
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy? a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They
Economics: Private and Public Choice 15th Edition
472283
Exam Prep
ECON 79319
A subsidy on a product will generate more actual benefit for consumers (and less for producers) when a. the supply of the product is relatively inelastic. b. the supply of the product is relatively elastic. c. the demand for the product is relatively elastic. d. either a or c is true. Answer: B Answer: B Answer: B Which
Economics: Private and Public Choice 15th Edition
472272
Exam Prep
ECON 80890
As the large baby-boom generation moves into the retirement phase of life, this will a. make it easier for the federal government to finance its budget deficit because the baby-boomers will be the wealthiest generation of retirees in American history. b. make it easier for the federal government to reduce spending because
Economics: Private and Public Choice 15th Edition
472317
Exam Prep
ECON 81992
The long-run average total cost (LRATC) curve a. indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. b. indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose
Economics: Private and Public Choice 15th Edition
472329
Exam Prep
ECON 85068
Figure 15-1 As shown in Figure 15-1, 80 percent of families earned a cumulative share of about ____ of income. a. 5 percent b. 15 percent c. 30 percent d. 50 percent Answer: D Answer: D Answer: D Which of the following events will leave GDP unchanged? a. You purchase 100 shares of Wal-Mart stock. b. You pay $500 to
Economics: Private and Public Choice 15th Edition
472284
Exam Prep
ECON 89322
In order to increase the money supply, the banking system must have a. required reserves. b. the authority to buy corporate stocks. c. the authority to print U.S. currency. d. excess reserves. e. the authority to engage in interstate banking. Answer: D Answer: D Answer: D Use the figure to answer the following question(s). Figure 10-5 Given the cost and demand
Economics: Private and Public Choice 15th Edition
472197
Exam Prep
ECON 90584
Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category? a. the job is widely viewed as prestigious. b. the employer provides child care on the premises. c. the employer does not discriminate. d. the work is widely
Economics: Private and Public Choice 15th Edition
472184
Exam Prep
ECON 91426
If the CEO of a large corporation uses the corporate jet to fly friends to the Super Bowl at company expense, this is most clearly an example of a. the duality problem. b. the violation of ceteris paribus conditions. c. a negative externality. d. the principal-agent problem. Answer: D Answer: D Answer: D Which of the following basic
Economics: Private and Public Choice 15th Edition
472342
Exam Prep
ECON 97855
Which of the following would be the most likely long-run effect if the United States increased its tariff rates and adopted stricter import quotas? a. a decrease in both U.S. imports and exports b. an increase in both U.S. imports and exports c. a decrease in U.S. imports and an increase in U.S.
Economics: Private and Public Choice 15th Edition
472313
Exam Prep
ECON A 12400
Use the figure to answer the following question(s). Figure 10-2 What is the maximum economic profit this firm depicted in Figure 10-2 will be able to earn? a. zero b. $20 c. $30 d. $100 Answer: B Answer: B Answer: B Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher
Economics: Private and Public Choice 15th Edition
472304
Exam Prep
ECON A 16044
The student government associations at several universities have experimented with purchasing bicycles to leave around campus for everyone's use. Anyone who needs the bike can use it, and they are not allowed to lock the bike up or take it home, but rather must leave it on campus for someone
Economics: Private and Public Choice 15th Edition
472188
Exam Prep
ECON A 23659
Frictional unemployment a. would be eliminated if the economy were more stable. b. would be eliminated if the minimum wage were raised. c. is the result of workers' skills not matching the jobs available. d. is present even when labor markets are working well. Answer: D Answer: D Answer: D Which one of the following would create a
Economics: Private and Public Choice 15th Edition
472193
Exam Prep
ECON A 27276
In a market economy, differences in incomes will a. reflect the relative scarcity of resources. b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. do all of the above. Answer: D Answer: D Answer: D Use the table below to answer the following question(s). Table
Economics: Private and Public Choice 15th Edition
472255
Exam Prep
ECON A 50329
When economists say an activity is consistent with economic efficiency, they mean a. a majority of citizens favor the activity. b. the benefits that result from the activity exceed the costs. c. the number of people who gain from the activity exceeds the number on whom costs are imposed. d. the costs that result
Economics: Private and Public Choice 15th Edition
472311
Exam Prep
ECON A 50656
In the short run, the firm's average fixed costs a. always increase as output increases. b. always decline as output increases. c. equal zero. d. remain constant as output expands. Answer: B Answer: B Answer: B Which of the following is true of high and variable rates of inflation? a. When such rates are present, it will be difficult
Economics: Private and Public Choice 15th Edition
472325
Exam Prep
ECON A 59627
Use the figure below to answer the following question(s). Figure 4-9 Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. Which of the following states the actual burden of the tax? a. $.20 for buyers and $.20 for sellers b. $.30 for
Economics: Private and Public Choice 15th Edition
472185
Exam Prep
ECON A 64181
Which of the following is not consistent with the basic postulate of economics that incentives matter? a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat. b. A politician votes against a proposal because most of his constituents oppose it. c. People drive less because of
Economics: Private and Public Choice 15th Edition
472314
Exam Prep
ECON A 71329
A decrease in the dollar price of foreign currency would cause a. the nation's imports to increase and exports to decline. b. the nation's exports to increase and imports to decline. c. both imports and exports to decline. d. both imports and exports to rise. Answer: A Answer: A Answer: A During the second half of 2008 the
Economics: Private and Public Choice 15th Edition
472214
Exam Prep
ECON A 78450
Two goods are considered substitutes if a. a decrease in the demand for one leads to a decrease in the supply of the other. b. an increase in the demand for one leads to a decrease in the supply of the other. c. an increase in the price of one leads to an
Economics: Private and Public Choice 15th Edition
472285
Exam Prep
ECON A 79157
If a nation wants to maintain a fixed exchange rate at a time when supply and demand are causing an excess of imports over exports, the nation might a. shift to a more expansionary monetary policy. b. shift to a more restrictive monetary policy. c. reduce its trade barriers (tariffs and quotas). d. tax
Economics: Private and Public Choice 15th Edition
472252
Exam Prep
ECON A 85962
If you were a government official that wanted to raise the equilibrium price of milk, which of the following actions would you take? a. Take milk from government storage and sell it. b. Encourage farmers to produce more milk. c. Subsidize purchases of dairy equipment. d. Encourage farmers to produce less milk. Answer: D Answer: D Answer:
Economics: Private and Public Choice 15th Edition
472257
Exam Prep
ECON A 88356
A shift to a more expansionary monetary policy will have its greatest effect on a. the interest rate on a 30-year fixed-rate mortgage. b. the interest rate on 10-year government bonds. c. short-term interest rates. d. the 15-year corporate bond interest rate. Answer: C Answer: C Answer: C International trade and competition from abroad a. provide domestic producers with
Economics: Private and Public Choice 15th Edition
472279
Exam Prep
ECON A 90113
In a market economy, which of the following is most important if a worker is going to achieve high earnings? a. hard work b. provision of goods and/or services that others value highly c. having a graduate degree in a field like history or sociology d. membership in a labor union Answer: B Answer: B Answer: B If
Economics: Private and Public Choice 15th Edition
472271
Exam Prep
ECON A 95883
Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted even when economic inefficiency results. This can be expected because of a. a lack of incentive for operational efficiency in the public sector. b. market failure. c. the special-interest effect. d.
Economics: Private and Public Choice 15th Edition
472266
Exam Prep
ECON A 96058
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will a. restrict output to increase the price even higher. b. raise price and expand output to increase profit. c. lower price and expand output to increase profit. d. attempt to maintain this position because it is consistent with profit maximization. Answer: A Answer: A Answer: A The macroeconomy
Economics: Private and Public Choice 15th Edition
472226
Exam Prep
ECON A 96918
The optimal level of resource use comes when a. MRP exceeds input price. b. MRP is less than input price. c. MRP equals input price. d. use of the resource exhausts the producer's funds. Answer: C Answer: C Answer: C Relative to a no-trade situation, if the United States exported chairs, the domestic price of chairs a. would rise,
Economics: Private and Public Choice 15th Edition
472210
Exam Prep
ECON E 10013
If debit cards become more widely used by consumers and businesses, which of the following is most likely to happen? a. Currency holdings will remain the same, but the M1 money supply will fall. b. The amount of currency held by the public will increase. c. Less money will be held as currency
Economics: Private and Public Choice 15th Edition
472337
Exam Prep
ECON E 13229
Which of the following would cause prices to fall and output to rise in the short run? a. Short-run aggregate supply shifts right. b. Short-run aggregate supply shifts left. c. Aggregate demand shifts right. d. Aggregate demand shifts left. Answer: A Answer: A Answer: A Data on trade barriers, income levels, and the growth of per capita GDP
Economics: Private and Public Choice 15th Edition
472237
Exam Prep
ECON E 19089
Figure 17-13 In Figure 17-13, the world price of a baseball is $3. With free trade, how many baseballs will the United States import? a. 4,000 b. 6,000 c. 8,000 d. 10,000 e. 12,000 Answer: C Answer: C Answer: C In which of the following situations is representative democracy most likely to lead to the adoption of an inefficient government
Economics: Private and Public Choice 15th Edition
472215
Exam Prep
ECON E 24935
A tax on the buyers of coffee will a. increase the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. decrease the price of coffee paid by buyers, increase the net price of coffee received by sellers, and
Economics: Private and Public Choice 15th Edition
472192
Exam Prep
ECON E 30871
In an environment of tournament pay, it is quite likely that marginally more productive employees will receive a. less than their marginal revenue product, while less productive employees receive more than theirs. b. more than their marginal revenue product, while less productive employees receive less than theirs. c. more than their marginal revenue
Economics: Private and Public Choice 15th Edition
472307
Exam Prep
ECON E 42682
Under a flexible exchange system, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market? a. an acceleration in the nation's inflation rate b. a balance of trade deficit c. a current account deficit d. a decline in the domestic inflation rate Answer: D Answer: D Answer: D Figure 9-3 Suppose
Economics: Private and Public Choice 15th Edition
472212
Exam Prep
ECON E 44592
Commercial banks can borrow reserves directly from the Fed at the a. prime interest rate. b. federal funds rate. c. discount rate. d. real interest rate. Answer: C Answer: C Answer: C Which of the following was an underlying cause of the economic crisis of 2008? a. a failure of government to impose regulations on Fannie Mae, Freddie Mac,
Economics: Private and Public Choice 15th Edition
472244
Exam Prep
ECON E 47927
Systematic overestimation or underestimation of inflation will a. occur under rational expectations but not under adaptive expectations. b. occur under adaptive expectations but not under rational expectations. c. occur under both rational and adaptive expectations. d. not occur under either rational or adaptive expectations. Answer: B Answer: B Answer: B Other things constant, if the demand for a
Economics: Private and Public Choice 15th Edition
472228
Exam Prep
ECON E 53477
In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has a. risen as the demand for skilled labor has increased relative to the demand for unskilled labor. b. risen as the demand for skilled labor has
Economics: Private and Public Choice 15th Edition
472225
Exam Prep
ECON E 58054
Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following
Economics: Private and Public Choice 15th Edition
472287
Exam Prep
ECON E 66441
The primary tool of fiscal policy is a. the money supply. b. the stock market. c. the federal budget. d. regulation of the bond market. Answer: C Answer: C Answer: C Use the figure to answer the following question(s). Figure 9-4 Figure 9-4 indicates the cost conditions for a firm operating in a price-taker market. If the market price of
Economics: Private and Public Choice 15th Edition
472330
Exam Prep
ECON E 70968
Which of the following is a necessary condition for price discrimination to be profitable? a. All consumers must have an identical demand for the product. b. Groups of consumers with different demand elasticities must be easily distinguishable. c. The market demand for the product must be highly elastic. d. It must be possible for
Economics: Private and Public Choice 15th Edition
472277
Exam Prep
ECON E 73288
In the Central Utah Project, the water delivered from dams to users a. is very well utilized, because planners allocated water to its highest valued uses and users. b. cannot generally be traded, so is often wastefully used in low-valued uses. c. is often sold to water-short cities by farmers who can then
Economics: Private and Public Choice 15th Edition
472253
Exam Prep
ECON E 75909
The political popularity of a tariff on imported goods that compete with products of a well-established domestic industry is a. surprising since one would expect the political power of consumers to override the interests of even a well-established domestic industry. b. surprising since one would expect the economic harm resulting from tariffs
Economics: Private and Public Choice 15th Edition
472302
Exam Prep
ECON E 76392
When competition is present and private ownership rights are clearly defined and securely enforced, a. production and trade are encouraged and plunder (taking from others) is discouraged. b. people get ahead by helping others in exchange for income. c. employers will have to provide prospective employees with at least as good a deal
Economics: Private and Public Choice 15th Edition
472204
Exam Prep
ECON E 81985
If decreased government borrowing drives down real interest rates in the United States, a. private investment will tend to decline. b. the dollar will depreciate leading to an increase in net exports. c. an inflow of capital will cause the dollar to depreciate. d. All of the above are true. Answer: B Answer: B Answer: B The tax
Economics: Private and Public Choice 15th Edition
472320
Exam Prep
ECON E 83159
A legal system that provides secure private property rights and unbiased enforcement of contracts a. is unnecessary for the smooth operation of markets. b. reduces the efficiency of markets. c. enhances the efficiency of markets. d. makes it easier for sellers to cheat or defraud consumers. Answer: C Answer: C Answer: C The imposition of price ceilings on a
Economics: Private and Public Choice 15th Edition
472322
Exam Prep
ECON E 88681
International trade does all the following except a. allow a country to specialize in producing certain goods and services. b. reduce world output. c. allow a country to move to higher consumption levels. d. increase world output. Answer: B Answer: B Answer: B When the top marginal tax rates were lowered substantially during the 1980s, the inflation-adjusted
Economics: Private and Public Choice 15th Edition
472242
Exam Prep
ECON E 97684
Crony capitalism is present when a. businesses are either implicitly or explicitly prohibited from making donations to political candidates. b. businesses either implicitly or explicitly provide political decision-makers with contributions and other forms of political support in "exchange" for government favors that will improve their profitability. c. rule of law is present and
Economics: Private and Public Choice 15th Edition
472274
Exam Prep
Economics 12581
Which of the following transactions would increase GDP? a. a new tricycle purchased at a department store sale by the parents of a three-year-old child b. the retirement check your uncle received for spending 25 years in the Marine Corps c. the five shares of Microsoft stock your grandparents gave you for making
Economics: Private and Public Choice 15th Edition
472290
Exam Prep
Economics 13502
A competitive price-searcher market is characterized by firms a. being able to choose their price and by low barriers preventing firms from entering or leaving the market. b. being able to choose their price and by high barriers preventing firms from entering or leaving the market. c. having to accept the market price for
Economics: Private and Public Choice 15th Edition
472312
Exam Prep
Economics 19999
The resource market involves transactions dealing with a. natural resources and financial services. b. the borrowing and lending of financial capital. c. the buying and selling of final goods and services. d. labor services, natural resources, and physical capital. Answer: D Answer: D Answer: D When private ownership rights are well-defined and enforced, owners a. can ignore the wishes
Economics: Private and Public Choice 15th Edition
472187
Exam Prep
Economics 21547
In the aggregate demand and aggregate supply model, a. the factors that cause the individual demand curve to slope downward are the same as the factors that cause the aggregate demand curve to slope downward. b. the factors that cause the individual supply curve to slope upward are the same as the factors
Economics: Private and Public Choice 15th Edition
472218
Exam Prep
Economics 24732
Which of the following is a positive economic statement? a. Government control of rent is a fair way to help poor people afford housing. b. Government control of rent keeps landlords from charging too much rent. c. Government control of rent decreases the number of new apartments constructed. d. Government control of rent is
Economics: Private and Public Choice 15th Edition
472213
Exam Prep
Economics 27009
Which of the following is an example of a normative economic statement? a. The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices. b. The economy grew at an annual rate of 5 percent during the first
Economics: Private and Public Choice 15th Edition
472240
Exam Prep
Economics 29406
Which of the following tends to reduce bank failures as the result of bank runs by depositors? a. The Federal Deposit Insurance Corporation b. The Federal Open Market Operations Committee c. The comptroller of the currency d. The Senate Banking Committee Answer: A Answer: A Answer: A A competitive car wash currently hires 4 workers, who together can
Economics: Private and Public Choice 15th Edition
472246
Exam Prep
Economics 33495
Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will a. place downward pressure on the prices of healthcare services. b. lead to higher healthcare prices. c. increase the incentive of consumers to economize on their purchases of healthcare services. d. increase the incentive of healthcare
Economics: Private and Public Choice 15th Edition
472265
Exam Prep
Economics 48754
A Japanese automobile manufacturer building an auto plant in the United States creates a a. supply of dollars and demand for yen in the foreign exchange market. b. demand for dollars and a supply of yen in the foreign exchange market. c. demand for both dollars and yen in the foreign exchange market. d.
Economics: Private and Public Choice 15th Edition
472194
Exam Prep
Economics 50311
The consequences of an economic change that are not immediately identifiable but are felt only with the passage of time are known in economics as a. opportunity costs. b. utility curves. c. secondary effects. d. comparative advantages. Answer: C Answer: C Answer: C An increase in the real interest rate will a. increase the inflationary premium. b. decrease the inflationary
Economics: Private and Public Choice 15th Edition
472262
Exam Prep
Economics 51646
Which of the following is consistent with the implications of the economic guidepost that information is costly to acquire? a. Most people do not know the names of their legislators in the U.S. Congress, but those same individuals are likely to know the names of all the cast members on a
Economics: Private and Public Choice 15th Edition
472263
Exam Prep
Economics 51821
Which of the following is true of debt financing? a. Elected political officials will find debt financing attractive because it allows them to provide voters with visible current benefits while pushing the more visible costs into the future. b. Debt financing is unattractive to elected political officials because voters recognize that excessive debt
Economics: Private and Public Choice 15th Edition
472280
Exam Prep
Economics 56568
How will a reduction in the price of cotton influence the market for blue jeans? a. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the left. b. The cost of producing blue jeans will fall, and the supply curve for blue jeans
Economics: Private and Public Choice 15th Edition
472335
Exam Prep
Economics 58992
When foreigners are making more "investments" in a country than the residents of the country are making abroad, which of the following is most likely to occur? a. Inflation. b. Rapid growth of the money supply. c. A balance of trade deficit. d. A negative net investment rate. Answer: C Answer: C Answer: C Assume that DeShawn is
Economics: Private and Public Choice 15th Edition
472286
Exam Prep
Economics 62490
Federal budget deficits generally grow during recessions because a. both tax revenues and transfer payments decrease. b. both tax revenues and transfer payments increase. c. tax revenues decrease while transfer payments increase. d. tax revenues increase while transfer payments decrease. e. tax revenues decrease but transfer payments are unchanged. Answer: C Answer: C Answer: C Welfare data show that
Economics: Private and Public Choice 15th Edition
472216
Exam Prep
Economics 63532
If a surplus exists in a market we know that the actual price is a. above equilibrium price and quantity supplied is greater than quantity demanded. b. above equilibrium price and quantity demanded is greater than quantity supplied. c. below equilibrium price and quantity demanded is greater than quantity supplied. d. below equilibrium price
Economics: Private and Public Choice 15th Edition
472233
Exam Prep
Economics 68579
Since the mid-1980s, the debt-to-income ratio of American households a. has remained about the same as the previous 25 years. b. has been slowly declining. c. has fluctuated between about 55 and 70 percent of after-tax income. d. has rapidly increased. Answer: D Answer: D Answer: D The main purpose of the Fed is to a. serve as the
Economics: Private and Public Choice 15th Edition
472205
Exam Prep
Economics 69818
Which of the following will tend to lower the ability of a union to increase the wages of its members? a. strong competition from nonunion labor b. threat of a strike c. increased demand for union labor d. all of the above Answer: A Answer: A Answer: A Suppose U.S. consumers start buying more English shoes and fewer U.S.
Economics: Private and Public Choice 15th Edition
472293
Exam Prep
Economics 76101
Use the figure to answer the following question(s). Figure 8-6 At what output does the firm depicted in Figure 8-6 begin to experience diminishing marginal returns to its variable factors of production? a. q1 b. q2 c. q3 d. an output beyond q3 Answer: A Answer: A Answer: A Use the table below to choose the
Economics: Private and Public Choice 15th Edition
472318
Exam Prep
Economics 77534
During a period of rapid growth in output, a. employment generally increases and unemployment decreases. b. employment generally decreases and unemployment increases. c. both employment and unemployment generally increase. d. both employment and unemployment generally decrease. Answer: A Answer: A Answer: A For a monopolist that does not price discriminate, economic profit is maximized in the short run
Economics: Private and Public Choice 15th Edition
472256
Exam Prep
Economics 92762
When a government subsidy is granted to the buyers of a product, sellers can end up capturing some of the benefit because a. the market price of the product will fall in response to the subsidy. b. the market price of the product will rise in response to the subsidy. c. the market
Economics: Private and Public Choice 15th Edition
472308
Exam Prep
Economics 93366
The optimal plant size depends on a. whether the firm confronts diminishing returns on its fixed factors of production. b. the output the firm expects to produce. c. whether the plant uses capital-intensive or labor-intensive production techniques. d. the preferences of the individual firm owners. Answer: B Answer: B Answer: B The Samaritan's dilemma describes the problem that
Economics: Private and Public Choice 15th Edition
472296
Exam Prep
Economics 94714
A decrease in aggregate demand and the subsequent cutbacks in production lead to a. frictional unemployment. b. cyclical unemployment. c. cost-push unemployment. d. structural unemployment. e. transitory unemployment. Answer: B Answer: B Answer: B If firms in a competitive price-searcher market are incurring economic losses, which of the following scenarios would best describe the change existing firms (who are
Economics: Private and Public Choice 15th Edition
472224
Exam Prep
Economics 95008
Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to a. care for resources and use them beneficially. b. innovate and introduce new products that are highly valued relative to their cost. c. produce goods efficiently. d. all of the above are correct. Answer: D Answer: D Answer:
Economics: Private and Public Choice 15th Edition
472217
Exam Prep
Economics 96880
Which of the following will likely have the strongest demand for large expenditures on environmental quality? a. wealthy countries b. poor countries c. countries with air pollution problems d. countries with water pollution problems Answer: A Answer: A Answer: A Which economist made the following statement: "Every major contraction in the U.S. economy has either been created or
Economics: Private and Public Choice 15th Edition
472339
Exam Prep
Economics 97184
The unemployment rate is defined as the number of a. unemployed individuals divided by the number of employed individuals. b. employed individuals divided by the number of individuals in the working-age population. c. unemployed individuals divided by the number of individuals in the working-age population. d. unemployed individuals divided by the number of individuals
Economics: Private and Public Choice 15th Edition
472219
Exam Prep
Economics 99054
The long-run equilibrium price level is the price level the economy is expected to reach when the a. economy produces its potential output b. Fed has stabilized interest rates c. federal budget is balanced d. discount rate equals the prime rate e. inflation rate is zero Answer: A Answer: A Answer: A What is meant by the expression, "There
Economics: Private and Public Choice 15th Edition
472220
Exam Prep
MicroEconomic 22089
Figure 4-24 Refer to Figure 4-24. The price that sellers receive after the tax is imposed is a. P1. b. P2. c. P3. d. impossible to determine from the figure. Answer: A Answer: A Answer: A If the exchange rate of the English pound goes from $1.50 to $2.00, the pound has a. appreciated, and the English
Economics: Private and Public Choice 15th Edition
472268
Exam Prep
MicroEconomic 23798
The burden of a tax will fall primarily on buyers when the a. demand for the product is highly inelastic and the supply is relatively elastic. b. demand for the product is highly elastic and the supply is relatively inelastic. c. tax is legally (statutorily) imposed on the seller of the product. d. tax
Economics: Private and Public Choice 15th Edition
472299
Exam Prep
MicroEconomic 24488
The highest valued alternative that must be given up in order to choose an option is called a. opportunity cost. b. utility. c. scarcity. d. disutility. Answer: A Answer: A Answer: A For a typical product, a decrease in consumer income will cause the market demand for the product to a. decrease, which is a shift to the left
Economics: Private and Public Choice 15th Edition
472200
Exam Prep
MicroEconomic 25863
Which of the following describes a situation in which demand must be inelastic? a. Total revenue decreases by 10 percent when the price of jeans rises by 10 percent. b. Total revenue decreases by less than 10 percent when the price of jeans rises by 10 percent. c. Total revenue increases by more
Economics: Private and Public Choice 15th Edition
472258
Exam Prep
MicroEconomic 28249
Figure 4-25 Refer to Figure 4-25. The tax causes a reduction in producer surplus that is represented by area a. A. b. B + C. c. D + E. d. F. Answer: C Answer: C Answer: C Within the AD/AS model, if consumers increase their savings and cut back on their spending, the a. natural rate of unemployment will increase. b.
Economics: Private and Public Choice 15th Edition
472341
Exam Prep
MicroEconomic 33546
The figure below depicts the demand, marginal revenue and marginal cost curves of a profit-maximizing monopolist. Figure 11-15 Refer to Figure 11-15. Which of the following areas represents the deadweight loss due to monopoly pricing? a. Triangle bde b. Triangle bge c. Rectangle acdb d. Rectangle cfgd Answer: B Answer: B Answer: B In economics the term utility refers to a.
Economics: Private and Public Choice 15th Edition
472288
Exam Prep
MicroEconomic 36072
Which of the following will lead to a decrease in supply of a good? a. an increase in the price of the good b. an increase in consumer incomes c. an increase in the price of an important resource used to produce the good d. a technological advance that lowers the cost of producing
Economics: Private and Public Choice 15th Edition
472295
Exam Prep
MicroEconomic 41753
Which of the following shifts short-run, but not long-run aggregate supply to the right? a. a decrease in the actual rate of inflation b. a decrease in the expected rate of inflation c. a decrease in the capital stock d. a drought in the Midwest agricultural areas. Answer: B Answer: B Answer: B If there is an unanticipated
Economics: Private and Public Choice 15th Edition
472332
Exam Prep
MicroEconomic 49535
Which of the following most accurately states the function of middlemen? a. Middlemen add to the expense of buyers and sellers without providing any benefit. b. Our economy would work just as well without middlemen since they do not expand the availability of physical goods. c. Middlemen reduce the number of transactions since
Economics: Private and Public Choice 15th Edition
472199
Exam Prep
MicroEconomic 57542
Use the figure below to answer the following question(s). Figure 4-8 Refer to Figure 4-8. The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S1 to S2. Imposing the tax
Economics: Private and Public Choice 15th Edition
472270
Exam Prep
MicroEconomic 58621
Figure 11-21 In Figure 11-21, the increase in consumer surplus that occurs when price is set equal to marginal cost rather than at the profit-maximizing level, as it would be in an unregulated monopoly, is shown by area a. abc b. adf c. cef d. dfeg e. bcfd Answer: E Answer: E Answer: E If banks move a substantial portion
Economics: Private and Public Choice 15th Edition
472278
Exam Prep
MicroEconomic 61337
According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate? a. a change in government spending and taxation that will lead to a budget surplus b. a planned increase in the budget deficit c. reducing government expenditures d.
Economics: Private and Public Choice 15th Edition
472289
Exam Prep
MicroEconomic 63929
An institution that issues a currency at a fixed rate in exchange for an equivalent amount of another designated currency and invests the funds in bonds and liquid assets that provide 100 percent backing for the currency units issued is called a. a central bank. b. the International Monetary Fund. c. the World
Economics: Private and Public Choice 15th Edition
472328
Exam Prep
MicroEconomic 68578
The demand and total cost schedules of a monopolist are presented in Table 11-2. What price should a profit-maximizing monopolist charge? a. $10 b. $9 c. $8 d. $7 Answer: BUse the table to answer the following question.Table 11-3 Answer: BUse the table to answer the following question.Table 11-3 Answer: B Use the table to answer the following
Economics: Private and Public Choice 15th Edition
472221
Exam Prep
MicroEconomic 72668
The 2012 box office receipts for the movie The Avengerswere $1,515.8 million. By way of comparison, the 1977 receipts forStar Wars were $798.0 million. If the Consumer Price Index was 60.6 in 1977 and 229.6 in 2012, which of the following is true? a. The real receipts of The Avengers were
Economics: Private and Public Choice 15th Edition
472303
Exam Prep
MicroEconomic 76971
An appreciation in the value of the U.S. dollar would a. encourage foreigners to make more investments in the United States. b. encourage U.S. consumers to purchase more foreign-produced goods. c. increase the number of dollars that could be purchased with the euro. d. discourage U.S. consumers from traveling abroad. Answer: B Answer: B Answer: B Patents grant
Economics: Private and Public Choice 15th Edition
472275
Exam Prep
MicroEconomic 78863
Which of the following is the most efficient way to reduce pollution emissions? a. Emission standards that cap allowable pollution. b. Government pollution charges or taxes. c. Legislated regulations limiting the quantity of emissions allowed by each firm. d. Enforcement of property rights, when those rights are well-defined and transaction costs are low. Answer: D Answer:
Economics: Private and Public Choice 15th Edition
472259
Exam Prep
MicroEconomic 83482
According to the Economic Freedom of the World measure, between 2000 and 2010 the economic freedom of the United States a. declined and its rank fell from third to tenth during this period. b. increased, and the U.S. became the freest economy in the world during this decade. c. was largely unchanged and the
Economics: Private and Public Choice 15th Edition
472186
Exam Prep
MicroEconomic 92216
When economists say the demand for a good is highly inelastic, they mean that a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good. b. the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the
Economics: Private and Public Choice 15th Edition
472191
Exam Prep
MicroEconomic 93707
Which of the following is true about inflation? a. It reduces the cost-of-living of the typical worker. b. It is measured by changes in the cost of a typical market basket of goods between time periods. c. It causes the purchasing power of a dollar to rise. d. It has no effect on real
Economics: Private and Public Choice 15th Edition
668785
Exam Prep
Topic 1 The Role Government Key Blooms
Economics Special Topic 1Government Spending and Taxation MULTIPLE CHOICE 1. Between 1960 and 2012, the share of federal spending allocated to national defense a. declined sharply, while the share allocated to health care increased substantially. b. rose sharply, while the share allocated to health care declined substantially.
Economics: Private and Public Choice 15th Edition
668788
Exam Prep
Topic 2 Social Security Trust Fun Dis Approximately Trillion Now
Economics Special Topic 2The Economics of Social Security MULTIPLE CHOICE 1. The payments made to the beneficiaries of the Social Security program are financed by a. insurance premiums previously paid into the system by the beneficiaries. b. current receipts derived from the Social Security payroll tax. c.
Economics: Private and Public Choice 15th Edition
669036
Exam Prep
Topic 10 Union Strength 33 Which The Following Would Expected
Economics Special Topic 10Do Labor Unions Increase the Wages of Workers? MULTIPLE CHOICE 1. Since 1970, union membership, as a percent of the labor force, has a. remained virtually unchanged. b. increased slightly. c. declined steadily. d. increased significantly. ANS: C PTS: 1 DIF: Moderate
Economics: Private and Public Choice 15th Edition
669039
Exam Prep
Topic 11 The Supply Of Oil For Users In The United States
Economics Special Topic 11The Question of Resource Exhaustion MULTIPLE CHOICE 1. Predictions of severe shortages due to impending natural resource depletion a. are widely accepted by resource economists even though such predictions are a relatively new occurrence. b. have been wrong in the past, but most resource
Economics: Private and Public Choice 15th Edition
669042
Exam Prep
Topic 12 Environmental Protection Agency Scientists That Will
Economics Special Topic 12Difficult Environmental Cases and the Role of Government MULTIPLE CHOICE 1. When it is difficult to assign and enforce property rights, a. markets result in outcomes that are often inefficient. b. courts can easily negotiate efficient outcomes. c. establishing better property rights is always
Economics: Private and Public Choice 15th Edition
669020
Exam Prep
Topic 3  managed Mutual Funds Will Persistently Earn A Higher Rate Of
Economics Special Topic 3The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity MULTIPLE CHOICE 1. Which of the following is true? a. Most stockholders own stock because they want to run the business. b. The shareholders of a large well-established firm can be reasonably
Economics: Private and Public Choice 15th Edition
669023
Exam Prep
Topic 4 Economics Special Topic 4great Debates Economics Keynes
Economics Special Topic 4Great Debates in Economics: Keynes Versus Hayek MULTIPLE CHOICE 1. The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20th century primarily because a. it provided the only logically consistent view of what caused the Great Depression. b.
Economics: Private and Public Choice 15th Edition
669030
Exam Prep
Topic 7 The Trade Deficit The United States
Economics Special Topic 7The Federal Budget and the National Debt MULTIPLE CHOICE 1. Which of the following is true? a. A budget deficit will reduce the national debt. b. A budget deficit will increase the national debt. c. A balanced budget will increase the national debt. d.
Economics: Private and Public Choice 15th Edition
669032
Exam Prep
Topic 8 Given The Current Structure Of Health-care Finance
Economics Special Topic 8The Economics of Health Care MULTIPLE CHOICE 1. Real expenditures on Medicare and Medicaid a. rose during the 1970s and 1980s, but they have been declining since 1990. b. fell during the 1970s and 1980s, but they have been increasing since 1990. c. increased
Economics: Private and Public Choice 15th Edition
669034
Exam Prep
Topic 9 The Earnings Differential Between Men And Women Who Never Married
Economics Special Topic 9Earnings Differences Between Men and Women MULTIPLE CHOICE 1. Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period. a. rising; declining b. rising; increasing c.
Economics: Private and Public Choice 15th Edition

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