1) Money market deposit accounts are included in:
A.M1 only.
B.M2 only.
C.neither M1 nor M2.
D.both M1 and M2.
2)
refer to the above diagram. this firm will earn only a normal profit if product price is:
a.p1
b.p2
c.p3
d.p4
3) A large hospital in a relatively small city finds that, if its demand for nurses
increases, the wages of nurses will rise. We can say that the hospital:
A.is a monopsonist.
B.faces a perfectly elastic supply of nurses.
C.is functioning in a perfectly competitive labor market.
D.will confront a surplus of nurses.
4)
refer to the above diagram. economies of scale:
a.are evident over the entire range of output.
b.occur over the 0q1 range of output.
c.begin at output q3.
d.occur only over the q1q3 range of output.
5) (Last Word) Suppose you deposit $5,000 in a bank which pays 10 percent interest
compounded twice a year. The actual annual interest rate you receive is:
A.10 percent.
B.11 percent.
C.10.25 percent.
D.12 percent.
6) The Gini ratio of income inequality ranges between:
A.0 and 10,000
B.1 and 10
C.-1 and +1
D.0 and 1
7) in the united states, business cycles have occurred against a backdrop of a long-run
trend of:
a.declining unemployment.
b.stagnant productivity growth.
c.rising real gdp.
d.rising inflation.
8) full-employment output is also called:
a.zero-unemployment output.
b.equilibrium output.
c.potential output.
d.zero-savings output.
9) If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real
wage will:
A.be unaffected.
B.rise by 4 percent.
C.fall by 4 percent.
D.rise by 8 percent.
10) All of the following are regulatory commissions dealing with industrial regulation
(as distinct from social regulation) except the:
A.Food and Drug Administration.
B.Federal Energy Regulatory Commission.
C.Federal Communications Commission.
D.50 state public utility commissions.
11)
refer to the above diagram. the concept of opportunity cost is best represented by the:
a.shift of the production possibilities curve from pp1 to pp2.
b.move from b on pp1 to e on pp2.
c.move from b on pp1 to c on pp1.
d.move from d inside pp1 to b on pp1.