1)
refer to the above graphs. an increase in the economy’s human capital would:
a.move the economy away from point a and toward point b.
b.shift curve cd to ab.
c.move the economy away from point b and toward point a.
d.shift curve ab to cd.
2) The total demand for money will shift to the left as a result of:
A.a decline in nominal GDP.
B.an increase in the price level.
C.a change in the interest rate.
D.an increase in nominal GDP.
3) allocative efficiency refers to:
a.the use of the least-cost method of production.
b.the production of the product-mix most wanted by society.
c.the full employment of all available resources.
d.production at some point inside of the production possibilities curve.
4) at the current price there is a shortage of a product. we would expect price to:
a.increase, quantity demanded to increase, and quantity supplied to decrease.
b.increase, quantity demanded to decrease, and quantity supplied to increase.
c.increase, quantity demanded to increase, and quantity supplied to increase.
d.decrease, quantity demanded to increase, and quantity supplied to decrease.
5) The last few years of the 1990s in the United States were characterized by:
A.low inflation and high unemployment.
B.stagflation.
C.low inflation and low unemployment.
D.a high misery index.
6) In the U.S. balance of payments, foreign purchases of assets in the United States are
a:
A.foreign currency outflow.
B.foreign currency inflow.
C.current account item.
D.debit, or outpayment.
7) assume for a competitive firm that mc = avc at $12, mc = atc at $20, and mc = mr at
$16. this firm will:
a.realize a profit of $4 per unit of output.
b.maximize its profit by producing in the short run.
c.minimize its losses by producing in the short run.
d.shut down in the short run.
8) Legal protections against direct copying of written material are called __________;
legal protections against using a product’s name are called __________.
A.patents; trademarks
B.trademarks; patents
C.copyrights; trademarks
D.copyrights; patents
9) The shape of the immediate-short-run aggregate supply curve implies that:
A.total output depends on the volume of spending.
B.increases in aggregate demand are inflationary.
C.output prices are flexible, but input prices are not.
D.government cannot bring an economy out of a recession by increasing spending.
10)
refer to the above figure. the optimal level of immigration in this country:
a.is q1.
b.is q2.
c.is q3.
d.cannot be determined with the information given
11)
refer to the above diagram. if price is reduced from p1 to p2, total revenue will:
a.increase by a minus c.
b.increase by c minus a.
c.decrease by a minus c.
d.decrease by c minus a.