Unemployment insurance is usually available to workers in ________ for a shorter
period of time than it is in ________.
A) the United States; Canada
B) Canada and some Western European countries; the United States
C) Canada; some Western European countries
D) some Western European countries; the United States
Under current tax law individuals do not pay taxes on health insurance benefits they
receive from their employers. As a result
A) the federal government spends more than it receives in tax revenue.
B) individuals are encouraged to want generous health coverage that reduces their
incentives to cut costs.
C) the quality of health care provided is less than it would be if benefits were taxed.
D) politicians are encouraged to raise income and payroll taxes.
Why is a dollar today more valuable than a dollar a year from now?
A) The dollar today can be immediately used to buy something.
B) A dollar a year from now will likely have less purchasing power because of inflation.
C) The unknown future is riskier than the known present.
D) all of these
George Gnat subscribes to a monthly pest control service for his home. Last week the
owner of the service informed George that he will have to raise his monthly service fee
because of increases in the price of gasoline used by his workers on their service trips.
How is the market for pest control services affected by this?
A) There is an increase in the supply of pest control services.
B) There is a decrease in the demand for pest control services.
C) There is a decrease in the quantity supplied of pest control services.
D) There is a decrease in the supply of pest control services.
If equilibrium is achieved in a competitive market
A) there is no deadweight loss.
B) the deadweight loss will be maximized.
C) the deadweight loss will equal the sum of consumer surplus and producer surplus.
D) the deadweight loss will be the same as the opportunity cost of the last unit of output
sold.
Figure 19-12
The graph above depicts supply and demand for U.S. dollars during a trading day,
where the quantity is millions of dollars. In order to support a fixed exchange rate of
0.30 pounds per dollar, the British central bank must
A) buy 0.4 million dollars per trading day.
B) sell 0.4 million dollars per trading day.
C) buy 0.8 million dollars per trading day.
D) sell 0.8 million dollars per trading day.
If the price level rose in three consecutive years from 100 to 120 to 140, then the annual
inflation rate over those years would
A) increase.
B) remain the same.
C) decrease.
D) equal 20%.
The International Nickel Company of Canada is often cited as an example of monopoly.
What was the source of the barrier to entry that gave this firm monopoly power?
A) It was a public enterprise; therefore, the Canadian government blocked entry into the
market for nickel.
B) There were important network externalities in the production of nickel.
C) Economies of scale resulted in the company becoming a natural monopoly.
D) control of a key resource
A study discussed in the Making the Connection feature in the text found that there is
________ that some consumers are not well aware of prices, even for goods they buy
regularly.
A) no evidence
B) substantial evidence
C) little evidence
D) no reason to believe
Marsha Murphy complained, “Many jobs that are filled mostly by men offer higher
wages than most jobs that are typically filled by women. In many cases, the jobs men
have require the same education and skills as the jobs women have. This is clearly
unfair. Women should be paid the same wages as men are paid for jobs that are
equivalent in terms of their qualifications.” Which of the following statements describes
Marsha’s position?
A) Marsha believes that women’s wages should include a compensating differential.
B) Marsha believes employers assume that men and women have different job
preferences.
C) Marsha believes that employers are reluctant to hire women for certain jobs because
of cognitive dissonance.
D) Marsha endorses a concept called comparable worth.
Figure 27-1
Suppose the economy is in short-run equilibrium below potential GDP and no fiscal or
monetary policy is pursued. Using the static AD–AS model in the figure above, this
would be depicted as a movement from
A) A to B.
B) B to C.
C) C to B.
D) B to A.
E) A to E.
The key characteristics of a monopolistically competitive market structure include
A) many small (relative to the total market) sellers acting independently.
B) all sellers sell a homogeneous product.
C) barriers to entry are strong.
D) sellers have no incentive to advertise their products.