1) If an unintended increase in business inventories occurs:
A.we can expect aggregate production to be unaffected.
B.we can expect businesses to increase the level of production.
C.we can expect businesses to lower the level of production.
D.aggregate expenditures must exceed the domestic output.
2) In 2006, the United States current account deficit was what proportion of GDP?
A.2.3 percent
B.5.7 percent
C.6.2 percent
D.8.2 percent
3) The amount of land covered by forests is:
A.declining in all nations.
B.increasing in all nations.
C.increasing in places like the U.S. and Western Europe, while declining in countries in
South and Central America.
D.declining in places like the U.S. and Western Europe, while increasing in countries in
South and Central America.
4) Social, as distinct from industrial, regulation is the major focus of the:
A.Federal Trade Commission.
B.Federal Energy Regulatory Commission.
C.Federal Communications Commission.
D.Consumer Products Safety Commission.
5) suppose total output (real gdp) is $10,000 and worker-hours are 20,000. we can
conclude that:
a.real gdp per capita must be $200,000.
b.the price-level index must be less than 100.
c.labor productivity must be $0.5.
d.nominal gdp must be between $10,000 and $20,000.
6)
Refer to the above diagram of the market for money. The equilibrium interest rate is:
A.i1.
B.i2.
C.i3.
D.not determinable without additional information.
7) On January 1, 2008, Alex deposited $5000 into a savings account that pays interest
of 5 percent, compounded annually. If he makes no further deposits or withdrawals,
how much will Alex have in his account on December 31, 2010 (3 years later)?
A.$5,750
B.$5,788
C.$5,813
D.$5,825
8) if a purely competitive firm is maximizing economic profit:
a.it is necessarily maximizing per-unit profit.
b.it may or may not be maximizing per unit profit.
c.then per-unit profit will be minimized.
d.it is necessarily overallocating resources to its product.
9) The following balance sheet for the ABC National Bank in answering the next
question(s). Assume the required reserve ratio is 20 percent.
Refer to the above data. Assuming the bank loans out all of its remaining excess
reserves as a checkable deposit, and has a check cleared against it for that amount, the
bank will now have excess reserves of:
A.$0.
B.$3,000.
C.$12,000.
D.$5,000.
10) The basis of the following table shows market shares of firms in hypothetical
industries. Assume these are distinct industries with no buyer-seller relationships or
competition among them.
Refer to the above table. A merger between Firm 2 and Firm 3 in Alpha would be a:
A.vertical merger.
B.horizontal merger.
C.diagonal merger.
D.conglomerate merger.