1) Union workers have higher rates of job turnover than do nonunion workers.
2) we would expect the coefficient of cross elasticity of demand for dvd players and
dvds to be positive.
3) The Americans with Disabilities Act of 1990 is an example of industrial regulation.
4) A negative GDP gap can be caused by either a decrease in aggregate demand or a
decrease in aggregate supply.
5) approximately how many people became permanent legal residents of the united
states in 2007?
a.1 million.
b.700,000
c.500,000
d.350,000
6) The latest industry to begin the deregulation process is the:
A.trucking industry.
B.airlines industry.
C.electricity industry.
D.railroad industry.
7) Suppose a worker feels unhappy with his job and consequently quits. This illustrates:
A.the voice mechanism.
B.featherbedding.
C.the exit mechanism.
D.blacklisting.
8) (Advanced analysis) If S = -60 + .25Y and Ig = 60, where S is saving, Ig is gross
investment, and Y is gross domestic product (GDP), then the equilibrium level of GDP
is:
A.$200.
B.$320.
C.$360.
D.$480.
9) When the economy is at full employment:
A.one cannot generalize in comparing the actual and the standardized budgets.
B.the standardized budget will show a surplus and the actual budget will show a deficit.
C.the actual budget will show a surplus and the standardized budget will show a deficit.
D.the actual and the standardized budgets will be equal.
10) What is the relationship between living standards and birthrates?
A.The relationship is negative at low levels of income, but becomes increasingly
positive as incomes rise.
B.They are unrelated.
C.The relationship is positive (directly related).
D.The relationship is negative (inversely related).
11) (Last Word) Which one of the following is one of the leading economic indicators?
A.index of consumer expectations
B.the unemployment rate
C.the consumer price index
D.Federal income tax collections
12) The Lorenz curve shows the:
A.progressiveness of the Federal tax system.
B.degree of inequality in the distribution of income.
C.degree of discrimination against African-Americans and other minorities.
D.percentage of the population that is below the poverty line.
13) limited liability means that:
a.creditors have no legal claim on the personal assets of a proprietor.
b.corporations cannot be sued.
c.creditors have no legal claim on the personal assets of a corporate stockholder.
d.corporations have a legal life independent of their owners and managers.
14)
Refer to the above diagram. If the full-employment level of GDP is A, then it would be
appropriate fiscal policy for government to:
A.decrease spending and increase taxes.
B.decrease spending and decrease taxes.
C.increase spending and increase taxes.
D.increase spending and decrease taxes.
15) suppose the price of a product rises and the total revenue of sellers increases.
a.it can be concluded that the demand for the product is elastic.
b.it can be concluded that the supply of the product is elastic.
c.it can be concluded that the supply of the product is inelastic.
d.no conclusion can be reached with respect to the elasticity of supply.
16)
Refer to the above diagram for a specific economy. The shape of this curve suggests
that:
A.the price level rises at a diminishing rate as the level of aggregate demand increases.
B.full employment and price stability are compatible goals only when aggregate
demand is falling.
C.each successive unit of decline in the unemployment rate is accompanied by a
smaller increase in the rate of inflation.
D.each successive unit of decline in the unemployment rate is accompanied by a larger
increase in the rate of inflation.
17) macroeconomic stability is said to exist in an economy whenever:
a.there is no inflation.
b.total spending exceeds production capacity.
c.output matches production capacity, labor is fully employed, and inflation is low and
stable.
d.the rates of output growth, unemployment, and inflation are all zero.
18) if mua/pa= 100/$35 = mub/pb= 300/? = muc/pc= 400/?, the prices of products b and
c in consumer equilibrium:
a.cannot be determined from the information given.
b.are $105 and $140 respectively.
c.are $105 and $175 respectively.
d.are $100 and $200 respectively.
19) suppose you go to a doctor but your health insurance plan does not reimburse you
because you have not yet paid enough out-of-pocket for the year to qualify for
insurance benefits. this is an example of:
a.coinsurance.
b.a deductible.
c.monopsony power.
d.a deferred benefit plan.
20) which of the following is assumed in constructing a typical production possibilities
curve?
a.the economy is using its resources inefficiently.
b.resources are perfectly shiftable among alternative uses.
c.production technology is fixed.
d.the economy is engaging in international trade.
21) the organization created to oversee the provisions of multilateral trade agreements,
resolve disputes under the international trade rules, and meet periodically to consider
further trade liberalization is called the:
a.international monetary fund (imf).
b.world trade organization (wto).
c.common market organization (cmo).
d.international trade commission (itc).
22) Prepare a list of government tax or spending policy options that would tend to shift
the aggregate supply curve rightward.
23) David Ricardo, a nineteenth century economist, wrote The price of corn is not high
because a rent is paid, but a rent is paid because the price of corn is high. Explain this
statement in the context of supply and demand.
24) Compare and contrast the characteristics of economic growth in ancient or
pre-industrial times with modern economic growth today.
25) A pure monopolist sells output for $4.00 per unit at the current level of production.
At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and
average total costs are $4.25. The marginal revenue is $3.00. What is the short-run
condition for the monopolist and what output changes would you recommend?
26) (Consider This) Why do small differences in the rate of economic growth produce
large differences in the size of the economy over time? Illustrate with an example.
27) What are two key facts that serve as the rationale for the multiplier effect?