If the probability of losing your job remains ________, a recession would be a good
time to purchase a home because the Fed usually ________ interest rates during this
time.
A) low; lowers
B) low; raises
C) high; lowers
D) high; raises
E) low; does not change
Figure 18-6 Figure 18-6
shows the Lorenz curves for Islandia and Syldavia.
Which country has the more unequal distribution of income?
A) Islandia
B) Syldavia
C) They may have the same absolute income distribution although their relative income
distribution is different.
D) There is insufficient information to answer the question.
Figure 24-2
Ceteris paribus, an increase in the expected price of an important natural resource
would be represented by a movement from
A) SRAS1 to SRAS2.
B) SRAS2 to SRAS1.
C) point A to point B.
D) point B to point A.
Figure 5-2 Figure 5-2 shows a
market with a negative externality.
The deadweight loss due to the externality is represented by the area
A) abc.
B) abf.
C) abd.
D) ade.
Table 15-1
A monopoly producer of foreign language translation software faces a demand and cost
structure as given in Table 15-1.
What is the amount of the firm’s profit?
A) $335
B) $350
C) $880
D) $910
Table 3-2
The table above shows the demand schedules for caviar of two individuals (Ari and
Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market
quantity demanded would
A) decrease by 36 oz.
B) increase by 52 oz.
C) increase by 36 oz.
D) decrease by 52 oz.
Which of the following policies would reduce frictional unemployment?
A) a decrease in the minimum wage
B) a job retraining program
C) implementing an unemployment insurance policy
D) building an online job database that helps workers find jobs
The marginal revenue curve for a perfectly competitive firm
A) is downward-sloping.
B) is the same as its demand curve.
C) is perfectly inelastic.
D) is the same as its marginal cost curve.
Table 2-13
Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can
either devote their time to grooming dogs or bathing cats.
What is Tammi’s opportunity cost of grooming a dog?
A) half a bathed cat
B) two bathed cats
C) two-thirds of a bathed cat
D) one and a half bathed cats
An oligopolistic industry is characterized by all of the following except
A) existence of entry barriers.
B) the possibility of reaping long run economic profits.
C) firms pursuing aggressive business strategies, independent of rivals’ strategies.
D) production of standardized products.
An asset is
A) anything of value owned by a person or a firm.
B) a payment by a corporation to its shareholders.
C) a nonmonetary opportunity cost.
D) anything owed by a person or a firm.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and
the required reserve ratio is 10 percent. If the Federal Reserve raises the required
reserve ratio to 12 percent, then the bank will now have excess reserves of
A) $12,000.
B) $0.
C) -$2,000.
D) -$12,000.