Table 15-1
A monopoly producer of foreign language translation software faces a demand and cost
structure as given in Table 15-1.
What is the marginal revenue from the sale of the 12th unit?
A) $75
B) $50
C) $20
D) -$5
Holding the price of a firm’s output constant, if the marginal product of labor increases
A) the marginal revenue product of labor decreases.
B) the marginal revenue product of labor also increases.
C) the marginal products of other inputs also increase.
D) the marginal revenue product of labor may increase or decrease.
The president of Toyota’s Georgetown plant was quoted as saying, “Demand for high
volumes saps your energy. Over a period of time, it eroded our focus [and] thinned out
the expertise and knowledge we painstakingly built up over the years.” This quote
suggests that
A) Toyota was experiencing an excess demand for its automobiles which it had
difficulty keeping up with.
B) as Toyota expanded its capacity, it experienced diseconomies of scale.
C) Toyota was focused on “churning” out cars for which it did not invest sufficiently in
training its workers.
D) high demand for Toyota’s cars prevented the company from focusing on its strength:
auto design.
If the Fed does not take into account the additional policy channels available in an open
economy, then ________ when conducting contractionary monetary policy,
A) it is likely to decrease GDP too much and cause a recession
B) it is likely to decrease GDP too little and inflation will persist
C) it is likely to increase GDP too much and inflation will persist
D) it is likely to increase GDP too little and cause a recession
Figure 5-3 Figure 5-3 represents the market for
medical services with and without insurance, and the effect of a third-party payer
system on the demand for medical services. With insurance and a third-party payer
system, the equilibrium quantity of medical services is
A) 400.
B) 800.
C) 1,200.
D) >1,200.
The consumer price index implicitly assumes that the demand curve for each good and
service in the representative market basket is
A) positively sloped.
B) negatively sloped.
C) vertical.
D) horizontal.
Growth in labor productivity in the economy as a whole has been ________ labor
productivity in health care.
A) approximately equal to
B) slightly faster than
C) almost twice as slow as
D) more than twice as fast as
Anything owed by a person or a firm is
A) an asset.
B) a liability.
C) a bond.
D) equity.
For a demand curve to be upward sloping, the good would have to be an inferior good,
and
A) the income effect would have to be larger than the substitution effect.
B) the income effect would have to be smaller than the substitution effect.
C) the income effect would have to be equal to the substitution effect.
D) the income effect and the substitution effect would have to be nonexistent.
At a price of $8 per dozen, Chuy sells 40 dozen homemade tamales per week. When he
raised his price to $12 per dozen, he still sold 40 dozen per week. Based on this
information, the demand for his tamales is
A) perfectly elastic.
B) inelastic.
C) perfectly inelastic.
D) unit-elastic.
Real GDP is GDP in a given year
A) adjusted only for anticipated inflation.
B) adjusted only for unanticipated inflation.
C) valued in the prices of that year.
D) valued in the prices of the base year.
If at a price of $24, Octavia sells 36 home-grown orchids and at $30 she sells 24
home-grown orchids, the demand for her orchids is
A) elastic.
B) inelastic.
C) unit-elastic.
D) perfectly elastic.
If demand is perfectly inelastic, the absolute value of the price elasticity of demand is
A) zero.
B) less than one.
C) more than one.
D) equal to the absolute value of the slope of the demand curve.
Figure 2-1
Point B is
A) technically efficient.
B) unattainable with current resources.
C) inefficient in that not all resources are being used.
D) the equilibrium output combination.