1)
refer to the above diagram. the slope of curve zz at point b is:
a.infinity.
b.zero.
c.+1
d.-1
2) If actual reserves in the banking system are $40,000, excess reserves are $10,000,
and checkable deposits are $240,000, then the legal reserve requirement is:
A.10 percent.
B.12.5 percent.
C.20 percent.
D.5 percent.
3) welfare checks and food stamps are examples of _____________ used by the
government to redistribute income.
a.transfer payments.
b.market intervention.
c.taxation.
d.corporate subsidies.
4) Monetarists believe the private economy is inherently:
A.unstable and the public sector should be small.
B.unstable and the public sector should be large.
C.stable, but that the public sector should be large.
D.stable and that the government sector should be small.
5)
refer to the above data for a nondiscriminating monopolist. at its profit-maximizing
output, this firm’s total costs will be:
a.$300.
b.$248.
c.$198.
d.$126.
6) most of the disagreement among economists involves:
a.facts.
b.principles.
c.positive statements.
d.normative statements.
7) The principal-agent problem arises in labor markets because:
A.a firm may realize excessively large profits.
B.workers may provide less-than-expected work effort.
C.compensating wage differences do not pay for differences in the nonmonetary aspects
of jobs.
D.human capital investments vary among workers.
8)
if the budget line shifts from bb to bb in the above diagram we can infer that the:
a.price of y has increased and the price of x has decreased.
b.price of y has decreased and the price of x has increased.
c.prices of both x and y have increased.
d.prices of both x and y have decreased.
9) the “play or pay” proposal for health care reform is designed to:
a.increase access to health care by inducing more employers to provide health
insurance.
b.make health care vouchers freely available to all people living in poverty.
c.provide health care to all americans through the federal government as the single
insurer.
d.contain health care costs through government determination of doctors’ fees and
hospital charges.
10)
refer to the above diagram. which of the following is a normative statement?
a.point c is superior to point b because it is important to enhance the future of society.
b.if society is initially at point c, it must sacrifice 6 units of bread to obtain one more
unit of tractors.
c.if society produces 2 units of tractors and 12 units of bread, it is not using its available
resources with maximum efficiency.
d.other things equal, the combination of outputs represented by point d will result in
more rapid economic growth than will the combination represented by point c.
11) Answer the question on the basis of the following marginal product data for
resources a and b. The output of these independent resources sells in a purely
competitive market at $1 per unit.
Refer to the above data. Assuming the prices of resources a and b are $5 and $8
respectively, what is the least costly combination of resources for the firm to employ in
producing 192 units of output?
A.2 of a and 6 of b
B.6 of a and 2 of b
C.4 of a and 3 of b
D.3 of a and 4 of b
12) the twin problems of the u.s. health care industry are:
a.rapidly rising costs and unequal access to health care.
b.declining quality of health care and the duplication of specialized equipment at
hospitals.
c.declining per capita spending on health care and the moral hazard problem.
d.the decline in the number of family physicians and the failure to vaccinate children.
13) Why is the effect of a change in price of a substitute good potentially ambiguous?
14) What are two domestic reasons for the recent productivity acceleration experienced
in the U.S.?
15) In 1997, GDP in the tiny country of Lindora was $4 million and the price of a
market basket of goods was $15. In 2008, GDP in Lindora was $5 million and the price
of a market basket of goods was $ Given this information, it is clear that Lindora GDP
had a higher level of production in 2008 than 1997. Evaluate this statement.
16) Why would farmland closer to the limits of a city be worth more than farmland
farther out?
17) Explain the statement: Clean air and water have become increasingly scarce and
valuable resources because they have been treated in the past as if they were free and
unlimited in supply. What methods might be used to internalize spillover costs?