1) the long run is characterized by:
a.the relevance of the law of diminishing returns.
b.at least one fixed input.
c.insufficient time for firms to enter or leave the industry.
d.the ability of the firm to change its plant size.
2) which of the following would mostly likely increase the demand for gasoline?
a.the expectation by consumers that gasoline prices will be higher in the future.
b.the expectation by consumers that gasoline prices will be lower in the future.
c.a widespread shift in car ownership from suvs to hybrid sedans.
d.a decrease in the price of public transportation.
3) The U.S. tax-transfer system (as distinct from the tax system alone) is:
A.progressive.
B.proportional.
C.bimodal.
D.regressive.
4) A profit-maximizing firm will:
A.expand employment if marginal revenue product equals marginal resource cost.
B.reduce employment if marginal revenue product equals marginal resource cost.
C.reduce employment if marginal revenue product is less than marginal resource cost.
D.expand employment if marginal revenue product is less than marginal resource cost.
5) which of the following transactions would be included in gdp?
a.mary buys a used book for $5 at a garage sale.
b.nick buys $5000 worth of stock in microsoft.
c.olivia receives a tax refund of $500.
d.peter buys a newly constructed house.
6) The following diagram is a flexible exchange market for foreign currency:
Refer to the above diagram. Other things equal, a leftward shift of the demand curve
would:
A.depreciate the dollar.
B.appreciate the euro.
C.reduce the equilibrium quantity of euros.
D.cause a surplus of euros.
7) transfer payments are:
a.excluded when calculating gdp because they only reflect inflation.
b.excluded when calculating gdp because they do not reflect current production.
c.included when calculating gdp because they are a category of investment spending.
d.included when calculating gdp because they increase the spending of recipients.
8) if marginal cost is:
a.falling, then average total cost must also be falling.
b.rising, then average total cost must also be rising.
c.rising, then average total cost could be either falling or rising.
d.falling, then average total cost could be either falling or rising.
9) The food-stamp program is designed to:
A.increase the supply of farm products.
B.decrease the supply of farm products.
C.increase the demand for farm products.
D.decrease the demand for farm products.
10) In which of the following sets of circumstances can we confidently expect
inflation?
A.aggregate supply and aggregate demand both increase
B.aggregate supply and aggregate demand both decrease
C.aggregate supply decreases and aggregate demand increases
D.aggregate supply increases and aggregate demand decreases
11)
In the above diagram, the economy’s relevant aggregate demand and
immediate-short-run aggregate supply curves, respectively, are lines:
A.4 and 3.
B.4 and 1.
C.2 and 4.
D.2 and 3.
12) the two main types of managed care organizations are:
a.u.s. veterans hospitals and university health clinics.
b.health maintenance organizations (hmos) and private nursing homes.
c.health maintenance organizations (hmos) and preferred provider organizations (ppos).
d.preferred provider organizations (ppos) and nonprofit hospitals.
13) The antitrust laws are enforced by the:
A.Federal Bureau of Investigation.
B.Antimonopoly Court of Appeals.
C.Federal Justice Department and the Federal Trade Commission.
D.Department of Commerce.