1) when a consumer shifts purchases from x to y, the marginal utility of x falls and the
marginal utility of y rises.
2) Most of the DVCs of the world are located in Western Europe.
3) About one-half of U.S. electricity is generated using coal.
4) ITQs both limit catches and encourage fishing in the least costly way.
5) the european union (eu) is a free trade zone comprising all the nations of eastern and
western europe.
6) changes in the average age of the u.s. population over the past decade have decreased
the demand for health care.
7) A system of fixed exchange rates is more likely to result in exchange controls than is
a system of flexible (floating) exchange rates.
8) Actual investment consists of planned investment plus unplanned changes in
inventories (plus or minus.)
9) Statistical discrimination is also known as occupational discrimination.
10) The higher the interest rate, the larger will be the amount of money demanded for
transaction purposes.
11)
refer to the above information. over the $13-$11 price range, demand is:
a.perfectly elastic.
b.perfectly inelastic.
c.elastic.
d.inelastic.
12) If the prices received by farmers increased and the prices paid by farmers also
increased, the parity ratio:
A.will necessarily be unchanged.
B.may either increase or decrease.
C.will necessarily increase.
D.will necessarily decline.
13) Which of the following is a true statement?
A.There is a long-run tradeoff between inflation and unemployment.
B.There is no tradeoff between inflation and unemployment in the long run.
C.The short-run Phillips Curve is horizontal.
D.The long-run Phillips Curve is horizontal.
14) a productive activity that creates substantial external benefits should be:
a.encouraged by subsidization.
b.discouraged by special taxes or legislation.
c.exempt from governmental intervention.
d.prohibited.
15) Economists call the pursuit of a transfer of wealth through government at someone
else’s expense:
A.the paradox of voting.
B.the Coase theorem.
C.rent-seeking behavior.
D.the benefits-received principle.
16) In the United States professional football players earn much higher incomes than
professional soccer players. This occurs because:
A.most football players are good soccer players while the reverse is not true.
B.consumers have a greater demand for football games than for soccer games.
C.football and soccer games are highly substitutable products for most consumers.
D.the marginal productivity of soccer players exceeds that of football players.
17) In a private closed economy, when aggregate expenditures equal GDP:
A.consumption equals investment.
B.consumption equals aggregate expenditures.
C.planned investment equals saving.
D.disposable income equals consumption minus saving.
18)
refer to the above diagram. the movement from curve (a) to curve (c) suggests an
improvement in civilian goods technology but not in war goods technology.
19) Tariffs:
A.may be imposed either to raise revenue (revenue tariffs) or to shield domestic
producers from foreign competition (protective tariffs).
B.are also called import quotas.
C.are excise taxes on goods exported abroad.
D.are per unit subsidies designed to promote exports.
20)
Refer to the above diagram for the Federal funds market. If the Fed wants to raise the
Federal funds rate from i1 to i3, it should:
A.lower the reserve ratio.
B.loan more funds at the discount rate.
C.buy bonds from the banks and the public.
D.sell bonds to banks and the public.
21)
Refer to the diagram above, assuming that the firm represented is operating on curve
TC0. A change from TC0 to TC1 could be caused by:
A.a decrease in extraction costs.
B.an increase in user costs.
C.an increase in the price of the resource.
D.a decrease in the price of the resource.
22) remittances and backflows of experienced workers:
a.reduce the efficiency gains from migration.
b.reverse wage equalization that occurred with the original migration.
c.exacerbate the problem of “brain drain” from developing nations.
d.redistribute gains toward the original emigrant nation
23) What are the major characteristics of pure monopoly?
24) What, if any, is the relationship between the mobility of a particular type of labor
and the supply of labor?
25) Arrange the following items in the form of a commercial banks balance sheet, and
explain how each might come into being.
Stock shares, $300,000; Reserves, $60,000; Property, $290,000; Checkable deposits,
$150,000; Securities, $40,000; Loans, $60,000
26) How could legal immigration increase a nations stock of capital and what effects
would such an increase have on productivity, production costs and product prices?
27) What are four real and potential problems with the public debt?
28) The table below contains hypothetical international balance-of-payments data for
the United States. All figures are in billions. Compute with the appropriate sign (+ or )
and enter in the table the six missing items. What was the condition of the balance of
payments in the United States?
29) Calculate the multiplier when the MPC is .5, .75, .90. What is the relationship
between MPC and the multiplier?
30) How was the original DeBeers diamond company an example of classic monopoly
behavior? How did it manipulate demand and supply?