1) about three-fourths of all health care costs are paid out-of-pocket by patients.
2) The equilibrium price level and equilibrium level of real GDP occur at the
intersection of the aggregate demand curve and the aggregate supply curve.
3) The capricious universe view is the idea that the IACs are exploiting the DVCs.
4) the wants of consumers are expressed in the product market with “dollar votes”.
5) The standard data on income distribution do not include the value of noncash
transfers as income.
6) Electricity generating plants with low fixed costs tend to have high operating costs.
7) A nation that imports more goods and services than it exports is necessarily realizing
an international balance of payments deficit.
8) in drawing a particular budget line, money income and the prices of the two products
are fixed.
9) Graphically, the height of the investment schedule depends on the real interest rate,
together with the location of the investment demand curve.
10) A firm should undertake all the R&D activity that it can afford.
11) A rightward and upward shift of the Phillips Curve is consistent with the occurrence
of stagflation.
12) The equilibrium level of GDP is associated with:
A.an excess of planned investment over saving.
B.no unintended changes in inventories.
C.an unintended decrease in business inventories.
D.an unintended increase in business inventories.
13) the long-run average total cost curve:
a.will rise if diminishing returns are encountered.
b.will fall if diminishing returns are encountered.
c.will rise if economies of scale are incurred.
d.is based on the assumption that all resources are variable.
14) The distribution of wealth in the United States is such that it:
A.is randomly distributed among income classes.
B.has no perceptible impact on the distribution of income.
C.reduces income inequality.
D.contributes to income inequality.
15) Which of the following would not shift the aggregate supply curve?
A.an increase in labor productivity
B.a decline in the price of imported oil
C.a decline in business taxes
D.an increase in the price level
16) suppose that an economy’s labor productivity and total worker-hours each grew by
3 percent between year 1 and year 2. we could conclude that this economy’s:
a.real gdp remained constant.
b.capital stock increased by 3 percent.
c.production possibilities curve shifted inward.
d. production possibilities curve shifted outward.
17) skeptics of the recent productivity acceleration say that:
a.it is too soon to judge whether the high productivity advances between 1995 and 2007
are permanent or transitory.
b.the difficulties of the dot.com companies in 2001 will eventually undermine
productivity.
c.between 1995 and 2007 the economy moved below its natural rate of unemployment
and paid the price in the form of accelerating inflation.
d.the improved growth performance of the u.s. economy between 1995 and 2007
resulted from adroit monetary policy and not from increases in productivity.
18) (consider this) capital is a:
a.flow, whereas gross investment and depreciation are stocks.
b.flow, as are gross investment and depreciation.
c.stock, as are gross investment and depreciation.
d.stock , whereas gross investment and depreciation are flows.
19) Which of the following is considered a renewable natural resource?
A.natural gas.
B.copper.
C.solar power.
D.coal.
20) total fixed cost (tfc):
a.falls as the firm expands output from zero, but eventually rises.
b.falls continuously as total output expands.
c.varies directly with total output.
d.does not change as total output increases or decreases.
21) historically, real gdp has increased less rapidly than nominal gdp because:
a.price indices have not reflected improvements in product quality.
b.the general price level has increased.
c.technological progress has resulted in more efficient production.
d.the general price level has declined.
22) The determinants of aggregate demand determine the location of the aggregate
demand curve. Explain three of the four basic determinants of aggregate demand.
23) What are four criticisms of the single tax on land?
24) What is the economic rationale for liability rules and lawsuits? What are the
limitations with this approach?
25) (Last Word) Has the effect of oil prices increases on the economy been diminished?
Cite evidence to support the case for a diminished effect.
26) What are the effects of migration on the real wages and output of a low-wage nation
and a high-wage nation? What are the simplifications used to analyze these effects?
27) What is the long-run equilibrium in the extended aggregate demand and aggregate
supply model?
28) Explain the major causes of the persistent trade deficits in the United States in
recent years.
29) Purely competitive firms sell their product at the same price. This is also true in
some oligopolistic markets with standardized products. Therefore, these oligopolies are
actually highly competitive. Evaluate critically.
30) What have been the principal effects of the persistent trade deficits of the 1990s?
31) Discuss the problems with policies to limit catch size and the use of the total
allowable catch (TAC) policy.