Disposable personal income is defined as
A) personal income less personal taxes plus indirect sales taxes.
B) personal income less transfer payments plus personal taxes.
C) personal income less personal taxes.
D) personal income less depreciation.
On a two-dimensional graph, ________ allows for the effects of additional variables.
A) moving along a curve
B) shifting curves
C) eliminating a curve
D) adding an additional curve
When a monopolistically competitive firm lowers its price, one good thing happens to
the firm. What is this “one good thing” called?
A) the output effect
B) the price effect
C) the income effect
D) the substitution effect
Deflation will
A) increase aggregate demand.
B) increase the quantity of real GDP demanded.
C) decrease aggregate demand.
D) decrease the quantity of real GDP demanded.
Which of the following are primarily macroeconomic topics and which are primarily
microeconomic topics? a. college tuition rates
b. farm subsidies
c. national income
d. automobile prices
e. air traffic congestion
f. economic recession
In the United States, health care spending per person based on income per person is
________ the average for most other countries.
A) slightly lower than
B) significantly higher than
C) significantly lower than
D) comparable to
The body that is responsible for dating the beginning and ending dates for a recession is
A) the Fed.
B) the Congress.
C) the National Bureau of Economic Research.
D) the Bureau of Economic Analysis.
Federal Reserve Board Chairmen Paul Volcker, Alan Greenspan, and Ben Bernanke all
have focused on which of the following as their main goal of monetary policy?
A) high employment
B) price stability
C) economic growth
D) stability of financial markets
The public choice model assumes that government policy makers
A) must promote the public interest at the expense of their own self-interests in order to
be re-elected.
B) will pursue their self-interests in personal affairs but only if it does not conflict with
the public interest.
C) will often act irrationally in their personal affairs, but will act rationally when they
promote the public interest.
D) are likely to pursue their own self-interests, even if their self-interests conflict with
the public interest.
When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it
increases its production to 70,000 units of output, its total cost increases to $9.4 million.
Within this range, the marginal cost of an additional unit of output is
A) $41.43.
B) $134.29.
C) $135.
D) $145.
Article Summary. Starting as a Chicago antique store that sold sandwiches on the
side, Potbelly has grown from this 1977 beginning into a company which today
operates approximately 300 sandwich shops in the United States. In October 2013,
Potbelly sold stock for the first time through an initial public offering (IPO), with
shares jumping in price from the initial offering price of $14 to more than $32 on
the same day. Since 2011, Potbelly has seen an increase in both sales and revenue,
and earned a profit of $2.8 million in the first half of 2013.
Source: Matt Krantz, “Potbelly IPO shares more than double on open,” USA
Today, October 4, 2013. When Potbelly sold stock to the public in its IPO, it did so
through the NASDAQ market. This was an example of Potbelly raising funds through
A) reinvesting retained earnings.
B) a financial intermediary.
C) dividend reinvestment.
D) a financial market.
A farm worker gets paid today in money, but plans to spend the money next week. This
illustrates which function of money?
A) medium of exchange
B) unit of account
C) store of value
D) standard of deferred payment
Suppose that in 2013, the national income in the United States was $200 billion,
depreciation was $15 billion, personal taxes were $20 billion, and transfer payments
were $10 billion. Gross domestic product in 2013 is
A) $185 billion.
B) $215 billion.
C) $220 billion.
D) $245 billion.