Which of the following can a firm use to defend a successful product’s brand name?
A) The firm can obtain a patent on the brand name.
B) The firm can apply for a trademark to ban other firm’s from using the product’s
name.
C) The firm can increase the amount it spends on advertising for the product.
D) The firm can attempt to copyright the brand name.
To make the calculation of real GDP more accurate, in 1996 the BEA switched to using
A) base-year prices.
B) current prices.
C) chain-weighted prices.
D) market prices.
Public saving in the economy can be increased by
A) lowering taxes.
B) raising government spending.
C) raising taxes.
D) raising transfer payments.
As recently as 2000, ________ percent of doctors were in private practice and by 2013,
________ percent of doctors were in private practice.
A) only 20; more than 70
B) nearly 60; less than 40
C) about 50; about 50
D) over 80; less than 15
Which of the following is an appropriate discretionary fiscal policy if equilibrium real
GDP falls below potential real GDP?
A) an increase in government purchases
B) an increase in the supply of money
C) an increase in individual income taxes
D) a decrease in transfer payments
Which of the following explains why a firm would be interested in the knowing the
price elasticity of demand for a good it sells?
A) The price elasticity of demand can be used to determine the impact of changes in
income on quantity sold.
B) Knowing the price elasticity of demand allows the firm to determine how the cost of
producing additional units of the good will change.
C) Knowing the price elasticity of demand allows the firm to calculate how changes in
the price of the good will affect the firm’s total profit.
D) The price elasticity of demand allows the firm to calculate how changes in the price
of the good will affect the firm’s total revenue.
Figure 2-4 Figure 2-4 shows
various points on three different production possibilities frontiers for a nation. Consider
the following events:
a. an increase in the unemployment rate
b. general technological advancement
c. an increase in consumer wealth Which of the events listed above could cause a
movement from Z to V ?
A) a only
B) a and b only
C) b and c only
D) a, b, and c
Figure 12-1
At point L in the figure above, which of the following is true?
A) Aggregate expenditure is greater than GDP.
B) The economy has achieved macroeconomic equilibrium.
C) Actual inventories are greater than planned inventories.
D) GDP will be increasing.
Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What
happens in the market for solar panels if the government offers tax breaks to encourage
manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase
B) S increases, D no change, P decreases, Q increases
C) D and S increase, P and Q decrease
D) D no change, S increases, P decreases, Q decreases
Which of the following is a key determinant of the price elasticity of supply?
A) the slope of the supply curve
B) the availability of substitutes in production
C) the available technology
D) the time it takes to change output in response to a change in price