Consider the following items:
a. the album “21” by Adele
b. a Dutch horticulturalist’s new method for cultivating hybrid tulips
c. Rolls Royce’s “Spirit of Ecstasy” hood ornament design
d. the sale of Tumi luggage at a Macy’s department store Which of the items listed is an
example of intellectual property?
A) a and b only
B) a, b, and c
C) a and d only
D) all of the items listed
If a restaurant was a natural monopoly, its
A) marginal cost curve would still be declining when it crossed the demand curve.
B) average total cost curve would still be declining when it crossed the demand curve.
C) marginal revenue curve wold be the same as its demand curve.
D) marginal revenue curve would be horizontal.
Firms use two marketing tools to differentiate their products. What are these two tools?
A) lobbying and word of mouth
B) market research and demand estimation
C) brand management and advertising
D) consumer surveys and market experiments
Suppose the government wants to maintain a balanced budget. To achieve this goal,
when the economy falls into recession government would need to ________ taxes,
which would cause aggregate demand to ________.
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
A decrease in the reserve requirement ________ bank reserves and ________ the
money supply.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
If the marginal tax rate is equal to the average tax rate as taxable income increases, the
tax structure is
A) regressive.
B) proportional.
C) progressive.
D) unfair.
The multiplier is calculated as the change in ________ / change in ________.
A) real GDP; autonomous expenditure
B) autonomous expenditure; real GDP
C) nominal GDP; autonomous expenditure
D) real GDP; induced spending
Which of the following is not a reason why low-income countries might experience low
economic growth?
A) The country has endured extended periods of war.
B) The country fails to enforce a rule of law.
C) The country has a good education system.
D) The country has a low rate of saving and investment.
Which of the following models has as its central idea that workers and firms have
rational expectations?
A) the monetarist model
B) the new classical model
C) the real business cycle model
D) the new Keynesian model
According to a study by economists Raymond Fisman and Edward Miguel, as the level
of corruption in a country increases,
A) so does the number of parking violations by the country’s United Nations delegates.
B) so does the size of the country’s population.
C) the levels of foreign direct investment and foreign portfolio investment decrease.
D) the levels of real GDP per capita and real income per capita increase.
As the recession persisted into 2009, the unemployment rate in the United States rose to
________, the highest rate since the recession of 2001-2002 and the second highest
since the Great Depression.
A) 5.5 percent
B) 9.3 percent
C) 17.6 percent
D) 25.1 percent
Proponents of the new classical macroeconomics do not believe which of the
following?
A) Expansionary monetary policy can be an effective policy tool.
B) Workers and firms use information contained in Fed policy to form inflation
expectations.
C) Wages and prices will adjust rapidly in the economy.
D) The economy will normally be at its potential level.