Table 12-2
Table 12-2 lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume
that Margie operates in a perfectly competitive market. What is Margie’s total revenue if
she sells 250 pounds of apples?
A) $250
B) $500
C) $750
D) There is not enough information in the table to determine Margie’s total revenue.
What explains the appreciation of the Japanese yen relative to the U.S. dollar from 1970
to the early 1990s?
A) Japanese productivity rose faster than U.S. productivity.
B) Japanese inflation rose faster than U.S. inflation.
C) U.S. consumers reduced their preferences for Japanese goods.
D) High tariffs and restrictive quotas in the United States caused the value of the dollar
to decline.
If an industry is made up of five identical firms, the four-firm concentration ratio is
A) 5%.
B) 20%.
C) 80%.
D) 100%.
In a modern mixed economy, who decides what goods and services will be produced?
A) only the producers
B) only consumers
C) only the government
D) all of the above
Consider the following factors:
a. culture
b. religion
c. customs
d. prices
e. income Which of the factors above are likely to influence the choices consumers
make?
A) a, d, and e only
B) all the factors except b
C) all the factors except c
D) d and e only
E) all the factors listed
Table 9-12 Production and
Consumption Production
Without Trade With Trade
Estonia and Morocco can produce both swords and belts. Table 9-12 shows the
production and consumption quantities without trade, and the production numbers with
trade.
With trade, what is the total gain in belt production?
A) 30
B) 80
C) 120
D) 210
In the United States, the bulk of health care spending is paid by health insurance
companies. Such a system is also called a ________, where consumers of health care
pay a nominal fee and the rest are paid by the health insurance provider.
A) universal health care system
B) third-party payer system
C) socialized medicine system
D) single-payer system
The fastest growing category of government expenditure is
A) grants to state and local governments.
B) defense spending.
C) transfer payments.
D) government purchases.
Who controls a partnership?
A) the owners
B) stockholders
C) bondholders
D) employees
Figure 24-1
Ceteris paribus, an increase in firms’ expectations of the future profitability of
investment spending would be represented by a movement from
A) AD1 to AD2.
B) AD2 to AD1.
C) point A to point B.
D) point B to point A.
The Federal Reserve does not target both the money supply and an interest rate because
A) it would be too confusing to Wall Street and would disrupt the financial markets.
B) it would be too easy for Wall Street to determine what policy the Fed is following
and this would destabilize the economy.
C) it would be illegal according to the Federal Reserve Act.
D) the Fed cannot achieve a target for both the money supply and an interest rate at the
same time.
In New York City, about 1 million apartments are subject to rent control by the local
government. Rent control
A) puts a legal limit on the rent that landlords can charge for an apartment.
B) is a price floor which sets a minimum rent for apartments.
C) only applies to those apartments which are owned and rented out by the local
government.
D) is a government policy which limits apartment rental to those people whose incomes
are less than $50,000 per year.
Figure 4-1 Figure 4-1 shows Arnold’s demand curve for
burritos.
If the market price is $1.50, what is the consumer surplus on the second burrito?
A) $0.50
B) $1.00
C) $1.50
D) $3.50
Given the equations for C, I, G, and NX below, what is the marginal propensity to
consume? C = 1,000 + 0.8Y
I = 1,500
G=1,250
NX = 100 A) 0.2
B) 0.8
C) 1.8
D) 10
What is the NAIRU?
A) the natural accelerating inflation rate of unemployment
B) the nonaccelerating inflation rate of unemployment
C) the nongovernmental agency of inflationary rate unions
D) the new accrual index of real unemployment
Calculate the government purchases multiplier if the marginal propensity to consume
equals 0.8, the tax rate is 0.1, and the marginal propensity to import equals 0.2.
A) 2.1
B) 1.9
C) 1.7
D) 1.4
If inflation in the United States is higher than inflation in other countries, what will be
the effect on net exports for the United States?
A) Net exports will rise as U.S. exports increase.
B) Net exports will rise as U.S. imports decrease.
C) Net exports will decrease as U.S. exports decrease.
D) Net exports will decrease as U.S. imports decrease.