Figure 7-1 Figure 7-1 shows the U.S.
demand and supply for leather footwear. Suppose the government allows imports of
leather footwear into the United States. What will be the quantity of imports?
A) Q0
B) Q1
C) Q2
D) Q2 – Q0
Between 1981 and 2011, the overall mortality rate in the United States
A) decreased by more than 25 percent.
B) slowly but steadily increased.
C) remained fairly constant.
D) was similar to the average rate in most low-income countries.
Table 4-4
Table 4-4 shows the demand and supply schedules for the low-skilled labor market in
the city of Westover.
Suppose that the quantity of labor demanded decreases 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 = $10.00; Q = 390,000
B) W = $9.50; Q = 380,000
C) W = $8.50; Q = 340,000
D) W = $8.00; Q = 350,000
Which of the following cause the unemployment rate as measured by the Bureau of
Labor Statistics to overstate the true extent of joblessness?
A) inflation
B) discouraged workers
C) counting people as employed who are working part time, although they would prefer
to be working full time
D) unemployed persons falsely report themselves to be actively looking for a job
Automobile insurance companies have a problem with people who buy insurance and
then drive recklessly or take less care to avoid losses after being insured. In other
words, the automobile insurance market is subject to
A) asymmetric information.
B) market signaling.
C) moral hazard.
D) adverse selection.
How do a sole proprietorship and a corporation differ?
A) Proprietorships have unlimited liability while corporations have limited liability.
B) Corporations can issue stocks and bonds, while proprietorships cannot.
C) Corporations face more taxes than do proprietorships.
D) All of these are differences between the two types of businesses.
GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP.
B) GDP is not adjusted for pollution.
C) GDP is adjusted for changes in crime rates.
D) GDP is adjusted for increases in drug addiction.
In an oligopoly market
A) the pricing decisions of all other firms have no effect on an individual firm.
B) individual firms pay no attention to the behavior of other firms.
C) advertising of one firm has no effect on all other firms.
D) one firm’s pricing decision affects all the other firms.
Double taxation refers to
A) corporations paying taxes on profits and individuals paying taxes on wage income.
B) individuals paying taxes on wage income and individuals paying taxes on dividends.
C) corporations paying taxes on profits and individuals paying taxes on dividends.
D) corporations paying taxes on capital gains and individuals paying taxes on wage
income.
Which of the following is an example of a trade restriction?
A) Japan places a tax on all Korean automobiles.
B) Domestic wine is more expensive than wine imported from Chile.
C) The United States, Canada, and Mexico sign the NAFTA agreement.
D) Consumers prefer German beer to domestic beer.
Suppose that the price of a money clip increases from $0.75 to $0.90 and quantity
supplied rises from 8,000 units to 10,000 units. Use the midpoint formula to calculate
the price elasticity of supply.
A) 1.22
B) 1.0
C) 0.82
D) 0.07
Figure 13-11
What is the monopolistic competitor’s profit maximizing output?
A) Q1 units
B) Q2 units
C) Q3 units
D) Q4 units
In monopolistic competition there is/are
A) many sellers who each face a downward-sloping demand curve.
B) a few sellers who each face a downward-sloping demand curve.
C) only one seller who faces a downward-sloping demand curve.
D) many sellers who each face a perfectly elastic demand curve.
Table 11-4
In the table above, which countries are consistent with the predictions of the economic
growth model?
A) Botswana and Thailand
B) Japan and Guatemala
C) only Japan
D) all four countries