1) An increase in input productivity will:
A.shift the aggregate supply curve leftward.
B.reduce the equilibrium price level, assuming downward flexible prices.
C.reduce the equilibrium real output.
D.reduce aggregate demand.
2) Suppose population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual
incomes of $5,000, $2,500, $1,250, $750, and $500, respectively.
Refer to the above information. What percentage of total income is received by the
lowest 60 percent of the income receivers in population A?
A.60
B.50
C.25
D.18
3) compared to coffee, we would expect the cross elasticity of demand for:
a.tea to be negative, but positive for cream.
b.tea to be positive, but negative for cream.
c.both tea and cream to be negative.
d.both tea and cream to be positive.
4)
Refer to the above diagrams for two separate product markets. Assume that society’s
optimal level of output in each market is Q0 and that government purposely shifts the
market supply curve from S to S1 in diagram (a) and from S to S2 in diagram (b). The
shift of the supply curve from S to S2 in diagram (b) might be caused by a per unit:
A.subsidy paid to the producers of this product.
B.tax on the producers of this product.
C.subsidy paid to the buyers of this product.
D.tax on the buyers of this product.
5) the larger the positive cross elasticity coefficient of demand between products x and
y, the:
a.stronger their complementariness.
b.greater their substitutability.
c.smaller the price elasticity of demand for both products.
d.the less sensitive purchases of each are to increases in income.
6) The equilibrium rate of interest in the market for money is determined by the
intersection of the:
A.supply of money curve and the asset demand for money curve.
B.supply of money curve and the transactions demand for money curve.
C.supply of money curve and the total demand for money curve.
D.investment demand curve and total demand for money curve.
7) The first discovery (as distinct from first commercial application) of a product or
process is called:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
8) refer to the above data. the value for z is:
a.-5
b.+5
c.-10
d.zero
9) critics of the north american free trade agreement (nafta) feared that it would:
a.increase the flow of illegal mexican immigrants to the united states.
b.cause the european union and japan to raise trade barriers against u.s. goods.
c.cause a massive loss of u.s. jobs to mexico.
d.increase foreign ownership of assets in the united states.
10) (Last Word) Most economists view economic growth as:
A.good for the environment because richer economies spend more on environmental
protection.
B.bad for the environment because richer economies extract resources at a faster rate.
C.good for the environment because richer economies produce less chemicals.
D.bad for the environment because people in richer economies tend to care less about
the environment.
11) Other things equal, the monopsonistic employer will pay a:
A.lower wage rate and hire fewer workers than will a purely competitive employer.
B.higher wage rate but hire fewer workers than will a purely competitive employer.
C.lower wage rate but hire a larger number of workers than will a purely competitive
employer.
D.higher wage rate and hire a larger number of workers than will a purely competitive
employer.