Marginal utility can be
A) negative.
B) zero.
C) positive.
D) positive, negative or zero.
Figure 4-5
The figure above represents the market for pecans. Assume that this is a competitive
market. If the price of pecans is $9,
A) economic surplus is maximized.
B) too many consumers want to buy pecans.
C) the quantity supplied is greater than the economically efficient quantity.
D) the quantity demanded is economically efficient but the quantity supplied is
economically inefficient.
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.
Which of the following would decrease the natural rate of unemployment?
A) a decrease in the number of younger, less skilled workers in the economy
B) an increase in the generosity of unemployment insurance programs
C) fewer restrictions on unions to negotiate wage changes with companies
D) a decrease in government-sponsored programs that train unemployed workers so
they can find new jobs quickly
In order to derive an individual’s demand curve for salmon, we would observe what
happens to the utility-maximizing bundle when we change
A) income and hold everything else constant.
B) tastes and preferences and hold everything else constant.
C) the price of the product and hold everything else constant.
D) the price of a close substitute and hold everything else constant.
Figure 16-5
Suppose the firm represented in the diagram decides to use a two-part pricing strategy
such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is
the quantity it should produce?
A) 240 units
B) 320 units
C) 480 units
D) 560 units
Which of the following statements is false?
A) Not all individuals in both countries are made better off as a result of international
trade.
B) Within each country, some individuals are made better off as a result of international
trade, but one of the countries will be worse off overall.
C) Although some individuals may not be made better off as a result of international
trade, both countries may be made better off overall.
D) Each country as a whole is made better off as a result of international trade, but
individuals within each country may be made worse off.
How can the influence of a third variable be shown on a two-dimensional graph?
A) by allowing the relationship to be nonlinear
B) by allowing the position of the relationship line or curve to shift on the graph
C) by drawing a third axis coming out of the two axes
D) by super-imposing the third variable on the two-dimensional graph
Which of the following is a true statement about the multiplier?
A) The formula for the multiplier overstates the real world multiplier when we take into
account the impact of changes in GDP on imports, inflation and the interest rate.
B) The larger the MPC, the smaller the multiplier.
C) The multiplier is the ratio of the change in spending to the change in GDP.
D) The multiplier makes the economy less sensitive to changes in autonomous
expenditure.
If an airport decides to expand by building an additional passenger terminal, and in
doing so it lowers its average cost per airplane landing, it was previously operating at
A) minimum efficient scale.
B) more than minimum efficient scale.
C) less than minimum efficient scale.
D) minimum capacity.
In 2013, global profits for McDonald’s ________ when measured in local currencies
than they did when measured in dollars. This occurred because the value of the U.S.
dollar increased relative to most other currencies.
A) increased by more
B) decreased by more
C) increased by less
D) decreased by less
The rapid growth of China’s economy relative to the United States has benefitted U.S.
consumers because
A) competition from China has made jobs harder to find in the United States.
B) U.S. consumers can purchase more lower-priced goods made in China.
C) the United States has comparative advantage in more goods than China does.
D) goods made in China are always of higher quality than goods made in the United
States.