1) Explain the impact of each of the following upon commercial bank reserves: (a) the
Federal Reserve sells government bonds in the open market to private buyers; (b) the
commercial banks reduce their indebtedness to the Federal Reserve Banks; (c) the
Treasury makes a number of large disbursements in accelerating space research.
2)
suppose elroy’s budget line is as shown on the above diagram. if his tastes change in
favor of coke and against popcorn, the budget line will:
a.become steeper.
b.become flatter.
c.shift rightward.
d.be unaffected.
3) (Last Word) In 2001, Microsoft was found guilty of violating:
A.Section 7 of the Clayton Act.
B.Sections 1 and 2 of the Sherman Act.
C.the Federal Trade Commission Act.
D.Section 20 of the Wagner Act.
4) Which one of the following is true about the U.S. Federal Reserve System?
A.There are 12 regional Federal Reserve Banks.
B.The head of the U.S. Treasury also chairs the Federal Reserve Board.
C.There are 14 members of the Federal Reserve Board.
D. The Open Market Committee is smaller in size than the Federal Reserve Board.
5) A fractional reserve banking system:
A.is susceptible to bank panics.
B.prevents money creation through the lending process.
C.only tends to exist in developing economies.
D.prevents the Federal Reserve from influencing the money supply.
6) Noncompeting groups of workers are the result of:
A.differences in the age-earnings profiles of workers.
B.differences in the “job tastes” of workers.
C.differences in the innate and acquired abilities of workers.
D.geographic immobilities.
7) assume that the size of the underground economy increases both absolutely and
relatively over time. as a result:
a.real gdp will rise more rapidly than nominal gdp.
b.gdp will tend to increasingly understate the level of output through time.
c.gdp will tend to increasingly overstate the level of output through time.
d.the accuracy of gdp will be unaffected through time.
8) Which of the monetary policy tools can alter both the level of excess reserves and the
money multiplier?
A.open market operations
B.the reserve ratio
C.the discount rate
D.the federal funds rate
9)
Refer to the above diagram where curves (a) through (e) are for five different countries.
The Gini ratio is lowest in country:
A.a.
B.b.
C.c.
D.e.
10) (last word) legislation proposed in 2007, if passed, would have:
a.eliminated immigration quotas.
b.increased the emphasis on allowing immigrants based on family connections rather
than based on education and skills.
c.provided a form of amnesty for illegal immigrants through the issuance of z visas.
d.done all of these.
11) if a rational consumer is in equilibrium, which of the following conditions will hold
true?
a.mua = mub = muc = … = mun.
b.the marginal utility of each good purchased will be zero.
c.the marginal utility of the last dollar spent on each good purchased will be the same.
d.the total utility obtained from each good purchased will be the same.
12) in 1975 mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains
popular and profitable today. this longevity illustrates the idea of:
a.opportunity cost.
b.upsloping supply.
c.consumer sovereignty.
d.specialization.
13)
refer to the above short-run data. total fixed cost for this firm is:
a.about $67.
b.$300.
c.$200.
d.$100.
14) which of the following is a land resource?
a.a farmer
b.an oil drilling rig
c.a machine for detecting earthquakes
d.natural gas
15) In recent years, the United States has had large:
A.current account surpluses.
B.current account deficits.
C.balance of trade surpluses.
D.balance of payments surpluses.
16) introduction of the verson stamping machine helped firms in the automobile
industry:
a.eliminate diminishing returns in production.
b.achieve greater economies of scale.
c.reach their minimum efficient scale at a lower level of production.
d.shift their avc, atc, and mc curves upward.
17)
in the above diagram curves 1, 2, and 3 represent the:
a.average, marginal, and total product curves respectively.
b.marginal, average, and total product curves respectively.
c.total, average, and marginal product curves respectively.
d.total, marginal, and average product curves respectively.
18)
Refer to the above diagram that relates to Firm X. Which of the following would
illustrate process innovation by X?
A.a downshift in the total product curve from TP1 to TP2
B.an upshift in the total product curve from TP2 to TP1
C.a move from a to b on TP1
D.a move from c to d on TP2