In September 2012, the average price of gasoline in the United States was $3.91 per
gallon, and consumers purchased nearly 5 percent less gasoline than they had during
September 2011, when the average price of gasoline was $3.66 per gallon. Based on
these figures, from September 2011 to September 2012, the demand for gasoline was
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
The highest-valued alternative that must be given up to engage in an activity is the
definition of
A) utility.
B) implicit cost.
C) opportunity cost.
D) economic sacrifice.
Figure 11-12
The movement from isoquant T to isoquant U depicts
A) a change in preferences with regards to input usage.
B) an increase in the cost of production.
C) an increase in output.
D) an increase in labor usage holding capital and output constant.
Figure 5-13 Figure 5-13
illustrates the market for gasoline before and after the government imposes a tax to
bring about the efficient level of gasoline production. The gasoline tax raises the price
paid by consumers by ________ per gallon.
A) $0.75
B) $1.25
C) $1.75
D) $2.00
What is “brain drain”?
A) the tendency for highly educated workers in high-income countries to move to
low-income countries to volunteer their services
B) increased recruiting efforts that attempt to raise the average level of education in
developed nations
C) foreign direct investment that flows from a developed country to a developing
country
D) the loss of highly educated people from a low-income country as they move to
higher-income opportunities in foreign countries
Since 1950, the average length of a recession in the United States has been
A) such that recessions barely exist.
B) less than a year.
C) between 1 and 2 years.
D) greater than 2 years.
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that
the cost of the market basket
A) equaled $160 in 1996.
B) equaled $160 in 1983.
C) rose 160% from the cost of the market basket in the base year.
D) rose 60% from the cost of the market basket in the base year.
If a country’s currency is “pegged” to the dollar, its exchange rate is
A) floating.
B) flexible.
C) fixed.
D) undervalued.
A situation in which a country does not trade with other countries is called
A) autarky.
B) self-actualization.
C) autonomy.
D) independence.
If a corporate bond with a face value of $5,000 pays yearly coupon payments of $100,
what is the coupon rate?
A) 2%
B) 5%
C) 10%
D) 20%
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your
total utility from consuming cake is
A) maximized.
B) decreasing.
C) negative.
D) increasing.
The extra cost associated with undertaking an activity is called
A) net loss.
B) marginal cost.
C) opportunity cost.
D) foregone cost.
A decrease in the price of GPS systems will result in
A) a smaller quantity of GPS systems supplied.
B) a larger quantity of GPS systems supplied.
C) a decrease in the demand for GPS systems.
D) an increase in the supply of GPS systems.
Refer to Figure 5-13. The market equilibrium price of gasoline is ________ per gallon.
A) $3.00
B) $3.75
C) $4.25
D) $5.00