At macroeconomic equilibrium, total ________ equals total ________.
A) spending; production
B) investment; inventories
C) consumption; production
D) taxes; transfers
The law of demand implies, holding everything else constant, that as the price of gelato
A) increases, the demand for gelato will increase.
B) increases, the quantity of gelato demanded will increase.
C) decreases, the quantity of gelato demanded will increase.
D) decreases, the demand for gelato will increase.
Which of the following would most likely induce the Federal Reserve to conduct
expansionary monetary policy? A significant decrease in
A) oil prices.
B) business taxes.
C) income tax rates.
D) investment spending.
In the 1930s the United States charged an average tariff rate
A) that was less than its average tariff rate in 2007.
B) that cut its exports to other countries by 50 percent.
C) that was less than 2 percent.
D) that exceeded 50 percent.
Article Summary. The article describes three key ways startup companies can get
the most benefit from celebrity endorsements. One way is choosing a celebrity that
can bring credibility to the company and then incorporating the celebrity into the
company’s marketing strategy. Second, get public relations value from the
celebrity by offering exclusive interviews, contests, and photos and videos of the
celebrity with the product. Finally, make sure to choose a celebrity who will
represent the product at all times, giving the product maximum exposure.
Source: Kevin Tighe II, “3 Ways Startups Can Turn Celebrity Endorsements Into
Big Gains,” Forbes, March 8, 2013.
Economists refer to an increase in sales due to celebrity endorsements as being the
result of
A) network externalities.
B) the endowment effect.
C) social influence.
D) the ultimatum game.
Developing countries with low saving rates and poor levels of health and education are
likely to experience
A) high levels of foreign direct investment.
B) easy access to financial backing from banks.
C) rapid growth in household incomes.
D) low rates of growth in real GDP per capita.
The number of people who have gray hair is very high among residents living in
Florida. A student concludes that living in Florida causes hair to turn gray. What is the
flaw in this student’s reasoning?
A) The student is drawing a false conclusion by making the mistake of omitting critical
variables such as the age and gender of the residents.
B) The student is using an inadequate sample size.
C) The student is drawing a false conclusion; he is confusing cause and effect.
D) The student has failed to take into account other causes of gray hair.
Table 19-13
Consider the data shown above for Vicuna, a country that produces only two products:
oranges and shirts. Real GDP for Vicuna for 2009 using 2011 as the base year equals
A) $4,620.
B) $5,100.
C) $5,650.
D) $5,850.
A tariff
A) makes domestic consumers better off.
B) makes both domestic producers and consumers better off.
C) makes everyone worse off.
D) makes domestic producers better off.
Figure 9-1 Figure 9-1 shows the U.S. demand
and supply for leather footwear.
Under autarky, the deadweight loss is
A) $0.
B) $15.
C) $30.
D) $40.
Figure 28-8
A typical long-run Phillips curve would have the appearance of a curve running through
points
A) A and B.
B) A and C.
C) B and C.
D) A, B and C.
Assume that Australia has a comparative advantage in producing surfboards and New
Zealand imports surfboards from Australia. We can conclude that
A) Australia also has an absolute advantage in producing surfboards relative to New
Zealand.
B) Australia has a lower opportunity cost of producing surfboards relative to New
Zealand.
C) New Zealand has an absolute disadvantage in producing surfboards relative to
Australia.
D) Labor costs are higher for surfboard producers in New Zealand than in Australia.
Sparkle, one of many firms in the market for toothpaste, is in long-run equilibrium.
Sparkle has a small market share and has been in business for a long time.
a. Identify the market structure in which Sparkle operates. Explain your answer.
b. What is Sparkle’s profit or loss? Explain your answer. If you cannot determine the
profit or loss, explain what information is missing.
c. Draw a diagram showing Sparkle’s demand curve, marginal revenue curve, average
total cost curve and marginal cost curve. Label your diagram.
The current account includes records of a country’s
A) net exports.
B) net investment income.
C) net transfers.
D) All of the above are included in an economy’s current account.
Which of the following is not part of the “individual mandate” provision of the Patient
Protection and Affordable Care Act (ACA)?
A) Individuals are allowed to opt out of the insurance program if they can prove they
have no serious health issues and do so before the act fully takes effect in the year 2014.
B) By 2016, fines for not having health insurance will be the greater of $695 per person
or 2.5 percent of income.
C) Beginning in 2014, individuals who do not acquire health insurance will be subject
to a fine.
D) With limited exceptions, every resident of the United States will be required to have
health insurance that meets certain basic requirements.
The statement, “My iPhone is worth $300” represents money’s function as
A) a medium of exchange.
B) a unit of account.
C) a store of value.
D) a standard of deferred payment.