Which of the following is a factor of production that generally is fixed in the short run?
A) raw materials
B) labor
C) a factory building
D) water
As a form of business, a partnership
A) has limited liability.
B) has only one owner.
C) cannot issue stock.
D) has the most government rules and regulations affecting it.
An increase in the domestic interest rate relative to other interest rates should
A) increase investment spending.
B) decrease consumption spending.
C) increase government spending.
D) increase net exports.
Figure 3-7
Assume that the graphs in this figure represent the demand and supply curves for ramen
noodles, an inferior good. Which panel describes what happens in this market as a result
of an increase in income?
A) Panel (a)
B) Panel (b)
C) Panel (c)
D) Panel (d)
The provision of the Patient Protection and Affordable Care Act (ACA) Insurance
companies are required to participate in a high-risk pool that will insure individuals
with pre-existing medical conditions who have been unable to buy health insurance for
at least six months is the ________ provision.
A) employer mandate
B) state health exchanges
C) individual mandate
D) regulation of health insurance
Figure 12-1
If the firm is producing 700 units,
A) it is making a profit.
B) it is making a loss.
C) it should cut back its output to maximize profit.
D) it should increase its output to maximize profit.
A consumer’s utility-maximizing combination of goods is given by the bundle that
corresponds to the point on
A) the indifference curve that intersects the horizontal axis.
B) the indifference curve that intersects the vertical axis.
C) an indifference curve that is tangent to the budget constraint.
D) the budget constraint where it intersects one of the axes.
Table 3-1
The table above shows the demand schedules for Kona coffee of two individuals (Luke
and Ravi) and the rest of the market. At a price of $4, the quantity demanded in the
market would be
A) 40 lb.
B) 70 lb.
C) 110 lb.
D) 150 lb.
In the short run, the Federal Reserve can affect which of the following?
A) the inflation rate
B) the unemployment rate
C) the growth rate of real GDP in the economy
D) all of the above
Since the 1950s,
A) the United States has not experienced a business cycle.
B) U.S. business cycle fluctuations have becomes more volatile.
C) U.S. business cycle fluctuations have become milder.
D) U.S. business cycle fluctuations have not changed.