Table 23-3
Given the consumption schedule in the table above, the marginal propensity to consume
is
A) 0.1.
B) 0.3.
C) 0.6.
D) 0.9.
In economics, choices must be made because we live in a world of
A) unemployment.
B) scarcity.
C) greed.
D) unlimited resources.
Figure 13-3
The marginal revenue from one additional unit sold is the sum of the gain in revenue
from selling the additional unit and the loss in revenue from having to charge a lower
price to sell the additional unit. Based on the diagram in the figure,
A) X represents the gain (price effect) and Y the loss (output effect).
B) X + Z represents the loss (output effect) and Y the gain (price effect).
C) Y represents the gain (output effect) and X the loss (price effect).
D) X represents the loss (price effect) and Y + Z the gain (output effect).
Payments by a corporation to its shareholders are known as
A) stocks.
B) bonds.
C) coupons.
D) dividends.
Table 7-1
Rob Crusoe and Bill Friday spent their week-long vacation on a desert island where
they had to find and make their own food. Rob and Bill spent one day each fishing and
picking berries. The table lists the pounds of output Rob and Bill produced. Use the
table above to select the statement that accurately interprets the data in the table.
A) Rob has an absolute advantage in picking berries and Bill has an absolute advantage
in catching fish.
B) Bill has an absolute advantage in picking berries and Rob has an absolute advantage
in catching fish.
C) Bill has an absolute advantage in picking berries and catching fish.
D) Rob has an absolute advantage in picking berries and catching fish.
Figure 4-3 Figure 4-3 shows the market for
granola. The market is initially in equilibrium at a price of P1 and a quantity of Q1. Now
suppose producers decide to cut output to Q2 in order to raise the price to P2. What area
represents producer surplus at the equilibrium price of P1?
A) A + B + D
B) D + E
C) D + E + G + H
D) A + B + C + D + E
In the United States, taxpayers are allowed to exclude from taxation a certain amount of
income, called
A) the personal income exclusion.
B) the income allowance.
C) the income tax credit.
D) the personal exemption.
Haiti was once a heavily forested country. Today, 80 percent of Haiti’s forests have been
cut down, primarily to be burned to create charcoal. The reduction in the number of
trees has led to devastating floods when it rains heavily. This is an example of
A) tragic externalities.
B) the tragedy of the commons.
C) human greed.
D) the consequences of not having a market economic system.
Table 8-3
Consider the data above (in billions of dollars) for an economy: Gross domestic product
(in billions of dollars) for this economy equals
A) $2,200.
B) $1,600.
C) $1,400.
D) $1,200.
Which of the following would shift the supply curve for energy drinks to the left?
A) a decrease in the expected future price of energy drinks
B) an increase in consumer income (assuming that energy drinks are normal goods)
C) a decrease in the number of firms that produce energy drinks
D) a decrease in the price of an input used to produce energy drinks
Which of the following is a characteristic of an oligopolistic market structure?
A) There are few dominant sellers.
B) Each firm sells a unique product.
C) It is easy for new firms to enter the industry.
D) Each firm need not react to the actions of rivals.
The federal budget deficit can be reduced by
A) raising taxes.
B) raising government spending.
C) raising transfer payments.
D) higher interest rates.
Caroline is an artist. She purchases canvas, paints, brushes, and accessories for $75. She
sells one of her original paintings to an art gallery for $1,500, even though an art lover
would pay $4,500 for that painting. How much value does Caroline add?
A) $75
B) $1,425
C) $1,500
D) $4,425
Article Summary. Arguing that a merger would lead to higher prices, reduced
service, and significantly less competition, the Justice Department and attorneys
general from 6 states and the District of Columbia filed a lawsuit in August to
challenge the pending merger of American Airlines and US Airways. The lawsuit
took some by surprise as the Justice Department has in recent years approved the
mergers of Delta with Northwest and United with Continental. The European
Union approved the merger in August, and American and US Airways had hoped
to complete the merger by September. Source: Even Perez, “US government seeks
to block American-US Airways merger,” CNN.com, August 13, 2013.
The standards used by the Department of Justice and the FTC to evaluate a potential
merger such as the one between American Airlines and US Airways are based on
market concentration as determined by the
A) Herfindahl-Hirschman Index.
B) Clayton Antitrust Act.
C) Anti-Collusion Task Force.
D) Robinson-Patman Act.
If a German firm produces cars in the United States, that production should count
towards
A) U.S. GNP.
B) German GDP.
C) U.S. GDP.
D) both U.S. GNP and German GDP.
Which of the following advances contributed to the “new economy” of the mid-1990s?
A) the increased use of the Internet in selling products and services
B) expanded cell phone use
C) the lower cost and increased availability of laptop computers
D) all of the above
Which of following is the best example of a monopoly if we use a broader definition of
monopoly?
A) Spuds McKenzie, a wealthy potato farmer in Idaho
B) Cheap Gas, one of two gasoline stations in a large rural community
C) Santos Tacos, the only taqueria in the small town of Santosville
D) Zippie Rentals, a sports car rental service in the downtown Boston area