1) (Consider This) Governments’ main economic concern about low birthrates is that:
A.in a few decades there will not be enough working age adults to support pension
responsibilities to retirees.
B.the smaller population makes the economy more vulnerable to foreign takeover.
C.a declining population will reduce worker productivity.
D.smaller populations are more susceptible to epidemics.
2)
Refer to the above diagrams. The numbers in parentheses after the AD1, AD2, and
AD3, labels indicate the levels of investment spending associated with each curve,
respectively. All numbers are in billions of dollars. If the interest rate is 8 percent and
the goal of the Fed is full-employment output of Qf, it should:
A.increase the interest rate from 8 percent to 10 percent.
B.decrease the interest rate from 8 to 4 percent.
C.decrease the interest rate from 8 to 6 percent.
D.maintain the interest rate at 8 percent.
3) The first commercial introduction of transparent tape is an example of:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
4) camille is at the candy store with her grandmother, who offers to buy her $6 worth of
candy. if lollipops are $1 each, and candy bars are $2 each, what combination of candy
can camille’s grandmother buy for her?
a.six lollipops and three candy bars
b.two lollipops and two candy bars
c.three lollipops and two candy bars
d.one lollipop and three candy bars
5) Which of the following is correct?
A.The Federal government can delay any strike for eighty days.
B.About 3 percent of total work-time is lost in the United States because of strikes.
C.Work-time lost may overstate the cost of a strike if the work stoppage disrupts
production in related industries.
D.Work-time lost may overstate the cost of a strike if nonstruck firms increase their
production.
6) Suppose the balance on the current account is +$100 billion and the balance on the
capital account is -$1 billion. The balance on the financial account is:
A.+$101 billion.
B.-$100 billion.
C.-$99 billion.
D.+$100 billion.
7)
Other things equal, the relationship between the relative importance of a given type of
labor in a firm’s total costs and the elasticity of demand for that labor is such that the:
A.demand for labor will be elastic only if labor accounts for less than 50 percent of total
costs.
B.demand for labor will be elastic only if labor accounts for 50 percent or more of total
costs.
C.larger the labor cost-total cost ratio, the smaller will be the elasticity of labor demand.
D.larger the labor cost-total cost ratio, the greater will be the elasticity of labor demand.
8) answer the next question(s) on the basis of the following data. all figures are in
billions of dollars:
refer to the above data. ndp is:
a.$116.
b.$121.
c.$125.
d.$150.
9) since the signing of the north american free trade agreement (nafta) in 1993:
a.total employment in the united states has slightly declined.
b.total employment in the united states has greatly increased.
c.mexican exports to the united states have declined.
d.productivity growth in canada, mexico, and the united states has stagnated.
10) the addition of government to the circular-flow model illustrates that government:
a.purchases resources in the resource market.
b.provides services to businesses and households.
c.purchases goods in the product market.
d.does all of these.