1) Process innovation can be depicted as:
A.an upward shift in a firm’s total product curve.
B.an upward shift in a firm’s marginal cost curve.
C.a downward shift in a firm’s marginal revenue curve.
D.an increase in product demand.
2)
Which aggregate expenditure schedule(s) AE in the above diagram for a private closed
economy represent the highest level of investment, assuming investment is the same at
each level of income and the level of consumption at zero income for each schedule?
A.AE4 only
B.AE2 and AE3
C.AE1 and AE4
D.AE3 and AE4
3)
Refer to the above diagram. If the full-employment level of GDP is D, then it would be
appropriate fiscal policy for government to:
A.decrease spending and increase taxes.
B.decrease spending and decrease taxes.
C.increase spending and increase taxes.
D.increase spending and decrease taxes.
4) which of the following individuals is most likely to migrate to switzerland, assuming
that all face equally good prospects of securing a good job after arrival?
a.ricardo is 25 years old, single, and currently lives in italy.
b.ivan is 50 years old, married, and currently lives in russia.
c.maria is 40 years old, married with three children, and currently lives in mexico.
d.tran is 35 years old, single, speaks only vietnamese and a little english, and currently
lives in vietnam.
5) The value today of a sum of money to be received in the future is referred to as:
A.the future value of that sum of money.
B.the present value of that sum of money.
C.compound interest.
D.the time-value of money.
6) Real wages in the United States in the long run:
A.show no discernible relationship to output per worker.
B.have increased at about the same rate as increases in output per worker.
C.have increased slower than increases in output per worker.
D.have increased faster than increases in output per worker.
7) The multiple by which the commercial banking system can expand the supply of
money on the basis of excess reserves:
A.is larger the smaller the legal reserve ratio.
B.is the reciprocal of the bank’s actual reserves.
C.is directly or positively related to the size of the required reserve ratio.
D.will be zero when the required reserve ratio is 100 percent.
8) a topographical map shows successively higher equal-elevation lines, whereas an
indifference map shows successively higher levels of total:
a.utility.
b.revenue.
c.profit.
d.cost.
9) suppose that a 20 percent increase in the price of normal good y causes a 10 percent
decline in the quantity demanded of normal good x. the coefficient of cross elasticity of
demand is:
a.negative and therefore these goods are substitutes.
b.negative and therefore these goods are complements.
c.positive and therefore these goods are substitutes.
d.positive and therefore these goods are complements.
10) at an annual growth rate of 7 percent, real gdp will double in about:
a.11 years.
b.10 years.
c.13 years.
d.9 years.
11) if labor productivity in the health care industry rises very slowly relative to wages
and salaries in the industry, this would tend to:
a.increase the demand for health care.
b.decrease the demand for health care.
c.increase the supply of health care.
d.decrease the supply of health care.