An example of a factor of production is
A) a car produced by an auto manufacturer.
B) a worker hired by an auto manufacturer.
C) a loan granted to an auto manufacturer.
D) the automobiles exported by an auto manufacturer.
The slope of a production possibilities frontier measures the ________ of producing
one more unit of a good.
A) marginal revenue
B) total revenue
C) marginal cost
D) opportunity cost
Holding everything else constant, an increase in the price of raisins will result in
A) an decrease in the quantity of raisins demanded.
B) an increase in the demand for raisins.
C) a decrease in the supply of raisins.
D) an increase in the quantity of raisins demanded.
If real GDP per capita in the United States is $8,000 in 2013, and if real GDP per capita
is $12,000 in 2023, what is the average annual percent changein the growth rate of GDP
per capita between 2013 and 2023?
A) 3.33%
B) 5%
C) 33%
D) 50%
Competition forces firms to produce and sell products as long as the ________ to
consumers exceeds the ________ of production.
A) marginal benefit; marginal cost
B) marginal benefit; marginal benefit
C) marginal cost; marginal cost
D) marginal cost; marginal benefit
Changes in ________ do not affect the level of aggregate supply in the long run.
A) technology
B) the number of workers in the economy
C) the price level
D) the amount of accumulated capital equipment
Which type of business is the most difficult to set up?
A) sole proprietorship
B) partnership
C) corporation
D) There is no difference in the difficulty of establishment.
Lucas and Sargent argue that the short-run trade-off between unemployment and
inflation is caused by
A) workers and firms using Fed policy to predict inflation.
B) workers and firms using all the information available to predict inflation.
C) workers and firms rapidly adjusting wages and prices in response to changes in
expectations.
D) workers and firms being fooled by unexpected changes in monetary policy.
The Federal Reserve cannot target both the money supply and the interest rate because
it does not control
A) bank reserves.
B) money demand.
C) the discount rate.
D) open market operations.
An increase in expected inflation will
A) increase real wages.
B) decrease the natural rate of unemployment.
C) shift the long-run Phillips curve to the right.
D) None of the above is correct.
Economists refer to the conflict between the interests of shareholders and the interests
of top management as
A) a stock-equity problem.
B) a liability problem.
C) a principal-agent problem.
D) a financial intermediary problem.
Because of the ________ of vaccinations, economic efficiency would be improved if
more people were vaccinated.
A) negative externality
B) positive externality
C) moral hazard
D) adverse selection