Figure 4-10 Figure 4-10 shows the
market for apartments in Bay City. Recently, the government imposed a rent ceiling at
R0. Suppose that instead of a price ceiling, the government imposed a price floor of R1.
What is the quantity of apartments demanded at the new price?
A) 0
B) Q1
C) QXOA
D) Q0
In the United States in 2012, the percentage of people with some form of health
insurance was about
A) 17%.
B) 29%.
C) 54%.
D) 84%.
Figure 27-5
In the dynamic model of AD–AS in the figure above, if the economy is at point A in year
1 and is expected to go to point B in year 2, Congress and the president would most
likely
A) decrease government spending.
B) increase government spending.
C) increase oil prices.
D) increase taxes.
E) lower interest rates.
Uninsured patients receiving treatments at hospital emergency rooms that could have
been provided less expensively at doctor’s offices account for ________ of health care
costs in the United States.
A) between 1 and 4 percent
B) approximately 25 percent
C) almost 40 percent
D) between 15 and 20 percent
Figure 5-6
Figure 5-6 shows the market for measles vaccinations, a product whose use generates
positive externalities. What is the market equilibrium output level?
A) Q1
B) Q2
C) Q1 + Q2
D) Q2 – Q1
An increase in the demand for peanuts due to changes in consumer tastes, accompanied
by an increase in the supply of peanuts as a result of favorable growing conditions, will
result in
A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium
price.
B) an increase in the equilibrium price of peanuts and no change in the equilibrium
quantity.
C) an increase in the equilibrium price of peanuts; the equilibrium quantity may
increase or decrease.
D) an increase in the equilibrium quantity of peanuts; the equilibrium price may
increase or decrease.
Which of the following can a firm use to defend a successful product’s brand name?
A) The firm can obtain a patent on the brand name.
B) The firm can apply for a trademark to ban other firms from using the product’s name.
C) The firm can increase the amount it spends on advertising for the product.
D) The firm can attempt to copyright the brand name.
Table 2-5
Table 2-5 shows the number of labor hours required to produce a cell phone and a board
foot of lumber in Estonia and Finland. What is Finland’s opportunity cost of producing
one cell phone?
A) 0.25 board feet of lumber
B) 4 board feet of lumber
C) 12 board feet of lumber
D) 16 board feet of lumber
An equilibrium in a game in which players pursue their own self-interests and do not
cooperate is called a
A) cartel equilibrium.
B) noncooperative equilibrium.
C) prisoner’s dilemma equilibrium.
D) dominant strategy equilibrium.
Figure 13-18
Which of the following statements is true?
A) Da represents the long-run demand curve facing a monopolistic competitor in a
constant-cost industry while Ddepicts the demand curve in the short run.
B) Darepresents the long-run demand curve facing a monopolistic competitor in a
constant-cost industry while Ddepicts the long-run demand curve in an increasing-cost
industry.
C) Darepresents the long-run demand curve facing a perfect competitor while Ddepicts
the long-run demand curve facing a monopolistic competitor.
D) Darepresents the long-run supply curve in a perfectly competitive, constant-cost
industry while Ddepicts the long-run demand curve facing a monopolistic competitor in
a decreasing-cost industry.
Because consumers who have insurance provided by their employers usually only pay a
deductible for a visit to the doctor’s office, they ________ of health care services than
they would if they paid a price that better represented the true cost of providing the
service.
A) demand a larger quantity
B) demand a smaller quantity
C) supply a larger quantity
D) supply a smaller quantity
A policy that offers parents a tax reduction based on how much they are saving for their
children’s college education should ________ the equilibrium level of loanable funds
and ________ the rate of long-term growth.
A) decrease; increase
B) increase; decrease
C) decrease; decrease
D) increase; increase
If real GDP in a closed economy is $40 billion, consumption is $20 billion, and
government purchases are $10 billion, what is investment?
A) $10 billion
B) $30 billion
C) $40 billion
D) $70 billion
Suppose the United States decides to go back on the gold standard. This should
A) decrease the Federal Reserve’s ability to pursue active monetary policy.
B) increase the effectiveness of contractionary monetary policy.
C) increase the effectiveness of expansionary monetary policy.
D) improve the Federal Reserve’s ability to target inflation.
When the price of oil rises unexpectedly, the equilibrium price level ________ and the
unemployment rate ________ in the short run.
A) rises; falls
B) rises; rises
C) falls; falls
D) falls; rises
Suppose a monopolistically competitive firm’s output where marginal revenue equals
marginal cost is 66 units and the price corresponding to this quantity is $18. If the
average total cost at this output is $16.55, then its total profit is
A) $1,188.
B) $1,092.30.
C) $95.70.
D) $1.45.
Table 4-3
The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes
in producing men’s clothing. If the market price of Marko’s polo shirts is $30, Marko’s
will produce
A) 0 shirts.
B) 1 shirt.
C) 3 shirts.
D) 4 shirts.
A monopolistically competitive firm that earns an accounting profit in the short run
A) must also earn an economic profit in the short run.
B) does not earn enough to earn an economic profit in the short run.
C) could earn an economic profit, break even or suffer an economic loss in the short
run.
D) could earn an economic profit or break even, but could not suffer an economic loss
in the short run.
In the United States from 1981 to 2011, deaths from diabetes increased largely due to
the effects of
A) foreign-produced insulin.
B) stress in the workplace.
C) a larger immigrant population.
D) increasing obesity.
What is a second-price auction?
A) an auction in which the bidder who submitted the highest bid is awarded the object
being sold and pays a price equal to the second highest amount bid
B) an auction in which the bidder who submitted the second highest bid is awarded the
object being sold
C) an auction in which the bidder who submitted the highest bid is awarded the object
being sold and pays a price equal to the average of the highest and second highest
amount bid
D) an auction in which the bidder who submitted the second highest bid is awarded the
object being sold and pays a price equal to the average of the highest and second
highest amount bid