Which of the following would shift the supply curve for smartphones to the right?
A) an increase in the price of a substitute in production
B) an increase in consumer income (assuming that all smartphones are normal goods)
C) a decrease in the number of firms that produce smartphones
D) a decrease in the price of an input used to produce smartphones
According to the short-run Phillips curve, if unemployment is 3.2% and inflation is
1.3%, an increase in the inflation rate might result in which of the following?
A) an increase in the unemployment rate to 3.4%
B) a decrease in the unemployment rate to 3.0%
C) a decrease in the demand for labor in the economy
D) a return to the original inflation rate of 1.3%
The impact of crowding out
A) is larger in a closed economy as compared to an open economy.
B) is larger in an open economy as compared to a closed economy.
C) is larger in an open economy as compared to a closed economy when fiscal policy is
contractionary.
D) is larger in a closed economy as compared to an open economy when fiscal policy is
contractionary.
Several studies have shown promising links between green tea consumption and cancer
prevention. How does this affect the market for green tea?
A) The quantity of green tea demanded increases because of a change in tastes in favor
of green tea.
B) The green tea demand curve shifts to the right because of a change in tastes in favor
of green tea.
C) The green tea demand curve shifts to the left because this new information will
increase the price of green tea.
D) The quantity of green tea demanded decreases because this new information will
increase the price of green tea.
In the United States from 1981 to 2011, deaths from ________ increased largely due to
the effects of increasing obesity.
A) strokes
B) cancer
C) heart attacks
D) diabetes
Table 2-12
Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat
in Guatemala and Honduras.
Honduras has a comparative advantage in the production of
A) canoes.
B) sailboats.
C) both products.
D) neither product.
Table 4-7
Table 4-7 shows the demand and supply schedules for labor market in the city of Pixley.
If a minimum wage of $11.50 is mandated there will be a
A) shortage of 20,000 units of labor.
B) surplus of 20,000 units of labor.
C) shortage of 40,000 units of labor.
D) surplus of 40,000 units of labor.
Some factors currently exist that inhibit the growth rate of the Chinese economy. One
reason that General Motors has been unwilling to bring its latest technology for
building electric and hybrid cars to China is
A) the introduction of free-market reforms.
B) the introduction of the relatively new resource of entrepreneurship.
C) the lack of laws that predictably enforce property rights.
D) the total lack of governmental intervention in the market place.
Figure 9-3 Since 1953 the
United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates
the impact of the quota. With a quota in place, what is the quantity consumed in the
domestic market and what portion of this is supplied by imports?
A) Domestic consumption equals 28 million pounds of which 18 million pounds are
imports.
B) Domestic consumption equals 40 million pounds of which 22 million pounds are
imports.
C) Domestic consumption equals 34 million pounds of which 16 million pounds are
imports.
D) Domestic consumption equals 34 million pounds of which 18 million pounds are
imports.
Table 13-4
Table 13-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per
box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to
university and private research laboratories. Based on the data in the table, which of the
following statements is true?
A) The table summarizes Victoria’s short-run, rather than long-run, market for plastic
vials.
B) Victoria could be either a monopolistically competitive or a perfectly competitive
firm.
C) Victoria should shut down temporarily.
D) Victoria should advertise more in order to increase the demand for plastic vials.
The amount of income a consumer has to spend on goods and services is known as
A) purchasing power.
B) effective demand.
C) a budget constraint.
D) wealth.
In a small European country, it is estimated that changing the level of capital from $8
million to $10 million will increase real GDP from $2 million to $3 million. What level
of GDP would you expect the economy to be able to reach if spending on capital
continued to rise to $12 million, assuming no technological change and no change in
the hours of work?
A) GDP would increase further, but by less than $1 million.
B) GDP would increase further by exactly $1 million.
C) GDP would increase further by more than $1 million
D) GDP would increase further by exactly $4 million.
In a closed economy, which of the following equations reflects investment? (Y = GDP,
C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y – C – G
B) Y – C – T
C) Y – T + TR
D) C + G –T
Of the Different types of businesses, a corporation has the ________ government rules
and the ________ government regulations affecting it.
A) least; least
B) least; most
C) most; least
D) most; most
Table 15-2
Table 4-13
The equations above describe the demand and supply for Aunt Maud’s Premium Hand
Lotion. The equilibrium price and quantity for Aunt Maud’s lotion are $20 and 30
thousand units. What is the value of consumer surplus?
A) $300 thousand
B) $450 thousand
C) $900 thousand
D) $1,500 thousand
Which of the following is an example of market “production,” as used by economist?
A) Garvey takes out a low-cost government loan to start his pet-sitting business.
B) Heidi makes a pizza for her family’s dinner.
C) Katrina works as a cashier at the local produce stand.
D) The theatre and film studies department in Fine Art’s College stages a play at the
local theatre.