The price elasticity of supply is equal to
A) the value of the slope of the supply curve.
B) the change in quantity supplied divided by the change in price.
C) the percentage change in price divided by the percentage change in quantity
supplied.
D) the percentage change in quantity supplied divided by the percentage change in
price.
Article Summary. In an August 2013 speech from the Lincoln Memorial, President
Obama was expected to emphasize that increased economic equality is needed to
improve racial equality. Economic gaps based on race have endured for 50 years,
with the differences in unemployment rates between blacks and whites remaining
virtually unchanged and the gap in wealth actually increasing. “If you look at 50
years after the 1960s civil rights movement, the most stubborn and persistent
challenge when it comes to the nation’s racial challenge remains in the areas of
economics and wealth,” said Marc Morial, president of the National Urban
League.
Source: Zachary A. Goldfarb, “For Obama, 50 years after historic march,
economic equality the path to racial justice,” Washington Post, August 17, 2013.
The article mentions increased economic equality is needed in terms of wealth, and for
some people this means a more equitable distribution of wealth. What is meant by a
more equitable distribution of wealth?
A) a more allocatively efficient distribution of wealth
B) a more productively efficient distribution of wealth
C) a more fair distribution of wealth
D) wealth distributed based on income levels
Figure 2-6
If the economy is currently producing at point E, what is the opportunity cost of moving
to point B?
A) 26 thousand forks
B) 20 thousand forks
C) 60 thousand spoons
D) 0 spoons
Since 1999, the capital account has recorded
A) transactions that affect net capital flows in the economy.
B) relatively minor transactions, such as migrants’ transfers, and sales and purchases of
nonproduced, nonfinancial assets.
C) transactions that affect the balance of trade or the balance of services.
D) statistical discrepancy between the current account and the financial account.
The process of bundling financial assets together and buying and selling these bundles
in a secondary financial market is called
A) open market operations.
B) securitization.
C) fractional reserve lending.
D) seigniorage.
What is the formula you should use to determine a bank account’s future value in one
year?
A) Future value equals the present value plus the rate of interest.
B) Future value equals the present value minus the rate of interest.
C) Future value equals the present value multiplied by one plus the rate of interest in
decimals.
D) Future value equals the present value divided by one plus the rate of interest in
decimals.
Which of the following would decrease the unemployment rate?
A) an increase in the minimum wage
B) an increase in the efficiency wage
C) an increase in labor union membership
D) government aid to retrain unemployed workers
All else equal, if the supply of veterinarians continues to increase while the population
of dogs and cats continues to decline, the incomes of veterinarians will
A) increase.
B) decline.
C) remain unchanged.
D) be indeterminate.
Which of the following is not true for a firm in perfect competition?
A) Profit equals total revenue minus total cost.
B) Price equals average revenue.
C) Average revenue is greater than marginal revenue.
D) Marginal revenue equals the change in total revenue from selling one more unit.
Figure 13-17
What is the amount of excess capacity?
A) Qh – Qf units
B) Qj – Qf units
C) Qj – Qh units
D) Qh – Qg units
A perfectly competitive firm’s short-run supply curve is
A) upward sloping and is the portion of the marginal cost curve that lies above the
average total cost curve.
B) upward sloping and is the portion of the marginal cost curve that lies above the
average variable cost curve.
C) perfectly elastic at the market price.
D) horizontal at the minimum average total cost.
Which of the following reforms could potentially reduce spending on health care
without reducing the effectiveness of health care received?
A) nationalize health care so that all health services are government funded and
operated
B) give every citizen a fixed amount of money that can only be spent on health care
services
C) reimburse consumers for preventive health care expenditures so as to avoid costly
emergency medical treatments in the future
D) standardize the tax treatment of employer-based health insurance benefits and
private spending on health care
The value of what a U.S.-owned McDonald’s produces in South Korea is included in
the U.S. ________ and the South Korean ________.
A) GDP; GDP
B) GNP; GDP
C) GDP; GNP
D) GNP; GNP