Figure 2-2
Figure 2-2 above
shows the production possibilities frontier for Mendonca, an agrarian nation that
produces two goods, meat and vegetables. If Mendonca chooses to produce 120 pounds
of meat, how much vegetables can it produce to maximize production?
A) 0 pounds of vegetables
B) 60 pounds of vegetables
C) 100 pounds of vegetables
D) 160 pounds of vegetables
Figure 4-3 Figure 4-3 shows Kendra’s
demand curve for ice-cream cones.
If the market price is $2.50, what is Kendra’s consumer surplus?
A) $9.00
B) $7.50
C) $1.50
D) $0
In the United States from 1981 to 2011, deaths from all of the following declined
substantially except
A) cancer.
B) kidney disease.
C) heart attacks.
D) strokes.
Which of the following is part of an economic model?
A) norms
B) hypotheses
C) opinions
D) preferences of economic agents
Table 4-8
Table 4-8 shows the demand and supply schedules for the low-skilled labor market in
the city of Westover.
Suppose that the quantity of labor supplied increases by 40,000 at each wage level.
What are the new free market equilibrium hourly wage and the new equilibrium
quantity of labor?
A) W = $9.00; Q = 410,000
B) W = $9.50; Q = 420,000
C) W = $8.50; Q = 400,000
D) W = $8.00; Q = 390,000
The Taylor rule helps explain the relationship between the Fed’s ________ and
________.
A) money supply target; economic conditions
B) money supply target; the federal funds target
C) federal funds target; the monetary growth rule
D) federal funds target; economic conditions
Table 19-19
Given the information above, calculate the GDP deflator in 2013.
A) 114
B) 105
C) 95
D) 87
Frictional unemployment is the result of
A) a persistent mismatch between the skills and characteristics of workers and the
requirements of the jobs.
B) the search process of matching workers with jobs.
C) the ups and downs in inflation.
D) a slowdown in the economy.
An increase in capital inflows will
A) increase net foreign investment.
B) increase capital outflows.
C) decrease capital outflows.
D) increase the value of the domestic currency.
If the market price is $25, the average revenue of selling five units is
A) $5.
B) $12.50.
C) $25.
D) $125.
If marginal utility of apples is diminishing and is a positive amount, consuming one
more apple will cause
A) total utility to decrease.
B) a consumer to get no satisfaction from consuming apples.
C) a consumer’s total utility to increase.
D) a consumer to go beyond her optimal consumption of apples.