1)
refer to the above diagram. other things equal, this economy will achieve the most rapid
rate of growth if:
a.the ratio of capital to consumer goods is minimized.
b.it chooses point c.
c.it chooses point b.
d.it chooses point a.
2) with a downsloping demand curve and an upsloping supply curve for a product, an
increase in consumer income will:
a.increase equilibrium price and quantity if the product is a normal good.
b.decrease equilibrium price and quantity if the product is a normal good.
c.have no effect on equilibrium price and quantity.
d.reduce the quantity demanded, but not shift the demand curve.
3) microsoft charges a substantially lower price for a software upgrade than for the
initial purchase of the software. this implies that microsoft views the demand curve for
the software upgrade to be:
a.more elastic than the demand for the original software.
b.upsloping rather than downsloping.
c.less elastic than the demand for the original software.
d.of less value than the original software.
4) Present consumption supported by large trade deficits may come at the expense of:
A.permanent debt to foreign interests.
B.permanent foreign ownership of formerly U.S. owned assets.
C.large sacrifices of future consumption.
D.all of these.
5)
Refer to the above diagram. Other things equal, an interest rate reduction coupled with
a rightward shift in curve A will:
A.shift curve B upward.
B.shift curve B downward.
C.have no effect on curve B.
D.reduce GDP.
6) The following table for a commercial bank or thrift:
Refer to the above table. When the legal reserve ratio is 30 percent, the monetary
multiplier is:
A.5.
B.4.
C.3.33.
D.2.5.
7) Economic growth in the DVCs might increase if IACs:
A.reduce their tariffs and import quotas.
B.encourage more immigration of high-skilled DVC workers.
C.outlaw direct private investment abroad by IAC corporations.
D.discourage capital flight to the DVCs.
8) How would the following situations affect the equilibrium interest rate in the
loanable funds market?
(a)The states agree to abolish sales taxes.
(b)The government reduces the budget deficit.
(c)Technological improvements are made to increase expected rates of return.
9) approximately how many people became permanent legal residents of the united
states in 2007?
a.1 million.
b.700,000
c.500,000
d.350,000
10) a leftward shift in the supply curve of product x will increase equilibrium price to a
greater extent the:
a.more elastic the supply curve.
b.larger the elasticity of demand coefficient.
c.more elastic the demand for the product.
d.more inelastic the demand for the product.