For a perfectly competitive firm,
In Figure 7-4, marginal product of labor is diminishing for levels of employment
How long are the terms of members of the Board of Governors in the Federal Reserve
System?
a. 2 years
b. 4 years
c. 6 years
d. 14 years
e. The remainder of the governor’s life.
Patent laws establish property rights for new goods
A midwestern farmer grows wheat and sells it to a miller for $500. After processing, the
miller sells the flour to a baker for $800, who then sells it to a grocery store for $1,000.
The grocery store sells it to customers for $1,200. In these transactions, how much has
been added to GDP?
a. $500
b. $800
c. $1,000
d. $1,200
e. $3,500
Using open market operations to create or reduce deposits has two advantages over
other tools. Those advantages are
a. secrecy and security
b. precision and effectiveness
c. secrecy and effectiveness
d. security and precision
e. precision and secrecy
Market consumer surplus at any price
If households experienced greater uncertainty about their economic future, which of the
following would occur in the market for loanable funds?
a. Both the supply and demand for funds would increase, lowering the interest rate and
raising investment spending.
b. The supply of funds would decrease, raising the interest rate and lowering investment
spending.
c. The supply of funds would decrease, lowering both the interest rate and investment
spending.
d. The supply of funds would increase, lowering both the interest rate and investment
spending.
e. The supply of funds would increase, lowering the interest rate and raising investment
spending.
The marginal revenue product (MRP) of labor is the
In 2008, the nominal GDP of the United States was approximately
a. $11.0 trillion
b. $14.4 trillion
c. $10.1 trillion
d. $12.0 trillion
e. $7.5 trillion
The concave shape of the production possibilities frontier reflects
We say there is productive inefficiency in saving lives if
Differences in marginal revenue products among workers can help explain the presence
of wage differentials.
Gross domestic product (GDP) is
a. the total value of all goods and services produced for the marketplace during a given
period, within a nation’s borders
b. the total value of all final goods and services produced for the marketplace during a
given period, by a nation’s citizens and businesses, both within a nation’s borders and
abroad
c. the total value of all final goods and services produced for the marketplace during a
given period, within a nation’s borders
d. the total value of all goods and services produced for the marketplace during a given
period, by a nation’s citizens and businesses
e. the total value of all goods, services and inputs produced for the marketplace during a
given period, within a nation’s borders