If a decrease in income leads to in a decrease in the demand for mac and cheese, then
mac and cheese is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.
The aggregate demand curve shows the relationship between the ________ and
________.
A) inflation rate; quantity of real GDP demanded
B) real interest rate: quantity of real GDP supplied
C) nominal interest rate; quantity of real GDP demanded
D) price level; quantity of real GDP demanded
Traditionally, Wall Street investment banks had been organized as partnerships, but by
2000 they had converted to being publicly traded corporations. As partnerships, the
principle-agent problem is ________, but as publicly traded corporations, the
principal-agent problem is often ________.
A) increased; more severe
B) increased; less severe
C) reduced; more severe
D) reduced; less severe
If inflation is completely anticipated,
A) no one loses in the economy.
B) borrowers lose in the economy.
C) lenders lose in the economy.
D) firms lose because they incur menu costs.
Table 2-4
Table 2-4 shows the output per day of two gardeners, George and Jack. They can either
devote their time to mowing lawns or cultivating gardens.
What is George’s opportunity cost of cultivating a garden?
A) half a garden cultivated
B) two lawns mowed
C) two-thirds of a garden cultivated
D) one and a half lawns mowed
In the United States, the federal income tax is an example of a
A) progressive tax.
B) regressive tax.
C) proportional tax.
D) flat tax.
If the paint on your house was eaten away by the fumes from a factory nearby and you
hired a lawyer to sue the polluting firm, your legal fees would be considered
A) external costs.
B) transaction costs.
C) marginal benefits.
D) social costs of the pollution.
There has been catch-up among ________, but there has not been catch-up among
________.
A) developing countries such as Niger; industrialized countries such as Japan
B) industrialized countries such as Japan; all countries of the world
C) developing countries such as Niger; all countries of the world
D) all countries of the world together; industrialized countries such as Japan
Which of the following statements regarding the use of gold as money is false?
A) It has standardized quality.
B) It is durable.
C) It has value other than money.
D) It is acceptable to traders.
Figure 11-1
The marginal product of the 7th worker is
A) 66.
B) 9.43.
C) 2.
D) -2.
Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11
Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will
________ exports from the United States to Mexico and ________ U.S. aggregate
demand.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
Figure 17-2
Figure 17-2 shows the
marginal revenue product for Becca’s Baubles, a producer of hand-beaded bracelets. If
Becca can sell her bracelets at $3 each, what is the marginal product of the 4th worker?
A) $36
B) 12 bracelets
C) 36 bracelets
D) $144