1)
In the above diagram, the economy’s short-run AS curve is line ___ and its long-run AS
curve is line ___.
A.1; 3
B.2; 4
C.3; 4
D.2; 1
2) the gdp gap measures the difference between:
a.ndp and gdp.
b.ni and pi.
c.actual gdp and potential gdp.
d.nominal gdp and real gdp.
3) the short-run average total cost curve is u-shaped because:
a.average fixed costs decline continuously as output increases.
b.of increasing and diminishing returns.
c.of economies and diseconomies of scale.
d.minimum efficient scale is encountered.
4) 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.
5) if a firm is confronted with economic losses in the short run, it will decide whether or
not to produce by comparing:
a.marginal revenue and marginal cost.
b.price and minimum average variable cost.
c.total revenue and total cost.
d.total revenue and total fixed cost.
6) Over time, technological change has:
A.reduced both the price elasticity and income elasticity of the demand for farm
products.
B.reduced the minimum efficient scale of production in agriculture and increased the
prices of farm products.
C.increased both price elasticity and income elasticity of the demand for farm products.
D.increased the minimum efficient scale of production in agriculture and reduced the
prices of farm products.
7) Name the type of unemployment occurring in each of the causes below and explain
your answer.
(a)Frank recently lost his job as the computer manufacturing company he works for
recently downsized after poor sales and poor performance of the economy during the
last year.
(b)Julie just recently graduated from college and is spending the summer traveling
before she begins a job with a consulting firm in the fall.
(c)Tom recently lost his job as the steel manufacturing firm he worked for moved their
plant overseas. The other steel plants in the nation have been also been following this
trend.
(d)Susan recently left her marketing job at a local bank because she found that finance
interests her more. She is currently looking for a job as a financial consultant.
8)
Refer to the above diagrams. The profit-maximizing firm’s total wage cost:
A.is 0abc.
B.is 0wbc.
C.is wab.
D.cannot be determined.
9) A nation’s capital and financial account:
A.contains inpayment items, but not outpayment items.
B.includes service exports and service imports.
C.includes both inpayments and outpayments.
D.includes net investment income and net transfers.
10) globally, on average test scores of eighth-grade math and science students, the u.s.
ranks
a.15th and 9th, respectively.
b.1st and 1st, respectively.
c.11th and 5th, respectively.
d.8th and 6th, respectively.
11) other things equal, if a full-employment economy reallocated a substantial quantity
of its resources to capital goods, we would expect:
a.present consumption to rise.
b.future consumption to fall.
c.a lower rate of growth of real gdp.
d.labor productivity to rise.
12) The aggregate supply curve (short-run):
A.graphs as a horizontal line.
B.is steeper above the full-employment output than below it.
C.slopes downward and to the right.
D.presumes that changes in wages and other resource prices match changes in the price
level.