1)
Refer to the above diagram for the Federal funds market. If the Fed wants the Federal
funds rate to be i1, what quantity of reserves do they need to make available to banks?
A.Qf1.
B.Qf2.
C.Qf3.
D.It cannot be determined with the information given.
2) if real gdp in a particular year is $80 billion and nominal gdp is $240 billion, the gdp
price index for that year is:
a.100.
b.200.
c.240.
d.300.
3) Which of the following nations has a total fertility rate that would suggest a declining
population?
A.Hong Kong.
B.Japan.
C.Germany.
D.All of these nations.
4)
Refer to the above data. The labor supply curve facing firms is:
A.such that it does not intersect the labor demand curve.
B.upsloping.
C.perfectly inelastic.
D.perfectly elastic.
5) The user cost of extracting a non-renewable resource is:
A.the sum of the dollar expenditures incurred to extract the resource.
B.the cost of not being able to extract it in the future if it is extracted and sold in the
present.
C.the selling price of the resource to the companies using it to produce goods and
services.
D.directly proportional to how much of the non-renewable resource remains.
6) if the elasticity of demand for labor in the united states is unitary, immigration into
the united states can be expected to:
a.increase the average u.s. wage rate.
b.decrease the total amount of wage earnings that u.s. workers receive.
c.increase the total amount of wage earnings that u.s. workers receive.
d.leave the total amount of wage earnings that u.s. workers receive unchanged.
7)
Refer to the above data. At $20 million of R&D expenditures, the:
A.marginal cost of R&D exceeds the marginal benefit.
B.expected total return from R&D is at a maximum.
C.interest rate cost of funds is negative.
D.marginal benefit of R&D exceeds the marginal cost.
8) “Income receivers should be paid in accordance with the value of output each
produces.” This statement is consistent with the:
A.monopoly theory of income distribution.
B.marginal productivity theory of income distribution.
C.least-cost, but not profit-maximizing, combination of inputs.
D.concept of compensating wage differences.
9)
refer to the above diagram. the profit-maximizing output:
a.is n
b.is k
c.is h
d.cannot be determined from the information given.
10) Critics of minimum-wage legislation argue that it:
A.keeps inefficient producers in business.
B.reduces employment.
C.undermines incentives to work.
D.is deflationary.
11) suppose the total monetary value of all final goods and services produced in a
particular country in 2008 is $500 billion and the total monetary value of final goods
and services sold is $450 billion. we can conclude that:
a.gdp in 2008 is $450 billion.
b.ndp in 2008 is $450 billion.
c.gdp in 2008 is $500 billion.
d.inventories in 2008 fell by $50 billion.
12) suppose losses cause industry x to contract and, as a result, the prices of relevant
inputs decline. industry x is:
a.a constant-cost industry.
b.a decreasing-cost industry.
c.an increasing-cost industry.
d.encountering x-inefficiency.
13) Other things equal, a decrease in the price level will:
A.shift the aggregate supply curve to the left.
B.shift the aggregate demand curve to the left.
C.cause a movement up a short-run aggregate supply curve.
D.cause a movement down an aggregate supply curve.
14) dash airlines is considering the addition of a flight from red cloud to david city. the
total cost of the flight would be $1,100, of which $800 are fixed costs already incurred.
expected revenues from the flight are $600. dash should:
a.not add this flight because only flights which cover their full costs are profitable.
b.not add this flight because it is not profitable at the margin.
c.add this flight because marginal revenue exceeds marginal costs.
d.not add this flight because total costs exceed total revenue.
15) the growth of gdp may understate changes in the economy’s economic well-being
over time if the:
a.distribution of income becomes increasingly unequal.
b.quality of products and services improves.
c.environment deteriorates because of pollution.
d.amount of leisure decreases.
16) if nominal gdp in some year is $280 and real gdp is $160, then the gdp price index
for that year is:
a.175.
b.57.
c.160.
d.280.
17) Suppose complementary inputs A and B are being used by a firm in the
profit-maximizing amounts. If the price of A now increases, the firm should use:
A.more of B, provided the substitution effect exceeds the output effect.
B.more of B because of the substitution effect.
C.less of B because of the substitution effect.
D.less of B because of the output effect.