In ________, health care spending per person based on income per person is
significantly higher than the average for most other countries.
A) Austria
B) Canada
C) Norway
D) the United States
Table 13-4
Table 13-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per
box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to
university and private research laboratories. At Victoria’s profit-maximizing output,
A) profit equals $2.
B) total revenue equals $24 and total cost equals $20.
C) total revenue equals $25 and total cost equals $22.
D) total revenue equals $21 and total cost equals $17.
The price level in the economy between 2012 and 2013 rose from 100 to 110. Between
2013 and 2014, the price level rose from 110 to 121. How does the short-run Phillips
curve predict the unemployment rate will change as a result?
A) The unemployment rate will decrease since inflation decreased.
B) The unemployment rate will decrease since inflation increased.
C) The unemployment rate will increase since inflation increased.
D) The unemployment rate will not change since there is no change in the rate of
inflation.
The marginal productivity theory of income distribution was developed by
A) Edward Lazear.
B) George Akerlof.
C) William Stanley Jevons.
D) John Bates Clark.
After the recession of 2007-2009, the unemployment rate peaked at 10.0 percent in
October 2009. Eighteen months later, it had
A) dropped by 50 percent.
B) declined by only 1 percentage point.
C) remained at 10.1 percent.
D) fallen to the natural rate of unemployment.
Figure 30-3
If the Thai government pegs its currency to the dollar at a value above $.03/baht, we
would say the currency is
A) undervalued.
B) overvalued.
C) parity valued.
D) equilibrium valued.
The broadest measure of the price level that includes all final goods and services is
A) the producer price index.
B) the consumer price index.
C) the GDP deflator.
D) the wholesale price index.
The Federal Reserve System’s four monetary policy goals are
A) low government budget deficits, low current account deficits, high employment, and
a high foreign exchange value of the dollar.
B) low rate of bank failures, high reserve ratios, price stability, and economic growth.
C) price stability, high employment, economic growth, and stability of financial
markets and institutions.
D) price stability, low government budget deficits, low current account deficits, and low
rate of bank failures.
Who controls a partnership?
A) the owners
B) stockholders
C) bondholders
D) employees
Economists reason that the optimal decision is to continue any activity up to the point
where the
A) marginal benefit is zero.
B) marginal benefit is greater than the marginal cost.
C) marginal cost is zero.
D) marginal benefit equals the marginal cost.
The demand and supply equations for the apple market are:
Demand: P = 12 – 0.01Q
Supply: P = 0.02Q
where P = price per bushel, and Q = quantity. a. Calculate the equilibrium price and
quantity.
b. Suppose the government guaranteed producers a price of $10 per bushel. What would
be the effect on quantity supplied? Provide a numerical value.
c. By how much would the $10 price change the quantity of apples demanded? Provide
a numerical value.
d. Would there be a shortage or surplus of apples?
e. What is the size of this shortage or surplus? Provide a numerical value.
According to the benefits-received principle of taxation
A) individuals who receive the benefits from a government program should pay the
taxes that support the program.
B) because high income individuals receive the most benefits from government
programs, they should pay more taxes than lower income individuals.
C) people in the same economic situation should bear an equal share of the tax burden.
D) the benefits of government programs such as national defense are shared equally by
all people; therefore, the burden of paying for these programs should be shared equally.
If a country’s currency is determined only by the demand and supply for that country’s
currency, the country is said to have a
A) floating exchange rate.
B) fixed exchange rate.
C) gold standard.
D) managed float.
Dr. Goldfinger decides to invest in companies which he believes can “improve the
productivity and efficiency” of health care services. What would Dr. Goldfinger need to
do to try to achieve allocative efficiency?
A) invest in companies that produce goods and services based on consumer preferences
B) invest in companies that produce goods and services at the lowest possible cost
C) invest in companies that fairly distribute their products and services
D) invest in companies that produce up to the point where the marginal cost of the last
unit produced is zero
When you purchase a new surfboard, you do so in the
A) resource market.
B) product market.
C) input market.
D) factor market.
Table 7-3
Mateo and Celeste produce custom saddles and spurs. Table 7-3 lists the number of
saddles and pairs of spurs Mateo and Celeste can each produce in one month. Select the
statement that accurately interprets the data in the table.
A) Mateo has a greater opportunity cost than Celeste for making saddles.
B) Mateo’s opportunity cost for making saddles is less than Celeste’s.
C) Celeste has a greater opportunity cost than Mateo for making saddles.
D) Mateo’s opportunity cost for making saddles and making spurs are both greater than
Celeste’s.
Figure 26-9
In the figure above suppose the economy is initially at point A. The movement of the
economy to point B as shown in the graph illustrates the effect of which of the
following policy actions by the Federal Reserve?
A) a decrease in income taxes
B) an increase in the required reserve ratio
C) an open market purchase of Treasury bills
D) an open market sale of Treasury bills
Harvey Rabbitt pays for monthly cable TV service. Last week the cable company
informed Harvey that his monthly cable price would go down because the city council
has granted approval for three new cable companies to service his area. How is the
market for cable TV services affected by this?
A) There is an increase in the supply of cable TV service.
B) There is a decrease in the demand for cable TV service.
C) There is a decrease in the quantity of cable TV service supplied.
D) There is a decrease in the supply of cable TV service.
Figure 3-2
A technological advancement would be represented by a movement from
A) A to B.
B) B to A.
C) S1 to S2.
D) S2 to S1.
Economic efficiency in a free market occurs when
A) consumer surplus is maximized.
B) producer surplus is maximized.
C) the sum of consumer surplus and producer surplus is maximized.
D) price is as low as possible.