Once a country has lost its comparative advantage in producing a good, its income will
be ________ and its economy will be ________ if it switches from producing the good
to importing it.
A) higher; less efficient
B) higher; more efficient
C) lower; less efficient
D) lower; more efficient
If a graph has a line that shows the quantity of flat-screen televisions sold in the last
five years, it is known as
A) a pie chart.
B) a time-series graph.
C) a demand curve for outsourcing.
D) a supply curve of outsourcing.
Economic discrimination takes place when an employer
A) pays workers the lowest wage possible.
B) pays workers different wages on the basis of some arbitrary characteristics of
workers that are irrelevant to the job performed.
C) pays lower wages to workers who are not as productive as other workers.
D) pays workers compensating wage differentials.
________ refers to reductions in a firm’s costs that result from an increase in the size of
an industry.
A) Internal economies
B) External economies
C) Autarkial dominance
D) Streamlining
Which of the following is a microeconomics question?
A) Why do economies experience periods of recession?
B) Will government intervention lower the unemployment rate?
C) Why has growth in the economy slowed down over the past decade?
D) How will Apple decide on a selling price for the iPad?
If workers and firms have rational expectations, they understand that ________
monetary policy will raise the inflation rate, so actual inflation ________ expected
inflation.
A) expansionary; will be equal to
B) expansionary; will be greater than
C) contractionary; will be equal to
D) contractionary; will be less than
E) expansionary; will be less than
When a firm charges $4.95 instead of $5.00, what do economists call this pricing
strategy?
A) cost-plus pricing
B) indirect pricing
C) odd pricing
D) unusual pricing
Which of the following statements is trueabout scarcity?
A) Scarcity refers to the situation in which unlimited wants exceed limited resources.
B) Scarcity is not a problem for the wealthy.
C) Scarcity is only a problem when a country has too large a population.
D) Scarcity arises when there is a wide disparity in income distribution.
Which of the following will result in an increase in labor productivity?
A) a decrease in the number of people attending institutions of higher education
B) a decline in the amount of human capital per worker
C) an increase in technology
D) a decline in the capital stock per hour worked
If real GDP in a closed economy is $40 billion, consumption is $20 billion, and
government purchases are $10 billion, what is investment?
A) $10 billion
B) $30 billion
C) $40 billion
D) $70 billion
Forecasts made by White House economists and economists at the Congressional
Budget Office in 2011 projected that real GDP
A) would return to potential GDP by the end of 2011.
B) would not return to potential GDP until the first quarter of 2013.
C) would not return to potential GDP until 2016.
D) would never return to potential GDP.
What would happen in the market for laser eye surgery if insurance companies started
to cover a portion of the price of voluntary procedures?
A) Demand will increase, but this will not shift the supply curve.
B) Supply will increase, but this will not shift the demand curve.
C) Demand and supply will both increase.
D) Demand will increase and supply will decrease.