If, in the market for oranges, the supply has increased then
A) the supply curve for oranges has shifted to the right.
B) the supply curve for oranges has shifted to the left.
C) there has been a movement upwards along the supply curve for oranges.
D) there has been a movement downwards along the supply curve for oranges.
Figure 4-4 Figure 4-4 shows the market for tiger
shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80.
Now suppose producers decide to cut output to 40in order to raise the price to $18.
What is the value of producer surplus at a price of $18?
A) $240
B) $300
C) $340
D) $720
Figure 4-8
Figure 4-8 shows the market for beer. The
government plans to impose a unit tax in this market. What is the size of the unit tax?
A) $2
B) $5
C) $7
D) $12
An increase in a fixed exchange rate from $2.00 per pound to $2.10 per pound is called
a(n) ________ of the pound.
A) devaluation
B) depreciation
C) appreciation
D) revaluation
An isocost line shows
A) all the possible combinations of two inputs that a firm can use to produce its output.
B) all the possible combinations of two inputs a firm can use that have the same total
cost.
C) all the possible combinations of two inputs a firm can use that have the same
marginal cost.
D) all the possible combinations of two inputs with constant returns to scale.
Table 2-8
Table 2-8 shows the output per month of two people, Wilma and Betty. They can either
devote their time to making marble statues or making marble benches.
Which of the following statements istrue?
A) Wilma has an absolute advantage in making both products.
B) Betty has an absolute advantage in making both products.
C) Betty has an absolute advantage in making statues and Wilma in making benches.
D) Betty has an absolute advantage in making benches and Wilma in making statues.
The monetary policy target the Federal Reserve focuses primarily on today is
A) the unemployment rate.
B) M1.
C) the inflation rate.
D) the interest rate.
E) M2.
Consider the market for pilots. What is likely to happen to the equilibrium wage and
quantity of pilots if the government enforces a lower mandatory retirement age, say
from age 65 to age 62?
A) The equilibrium wage and the equilibrium quantity of pilots rise.
B) The equilibrium wage and the equilibrium quantity of pilots fall.
C) The equilibrium wage falls and the equilibrium quantity of pilots rises.
D) The equilibrium wage rises and the equilibrium quantity of pilots falls.
The highest valued alternative that must be given up to engage in an activity is the
definition of
A) economic equity.
B) marginal benefit.
C) opportunity cost.
D) marginal cost.
Suppose you have worked at a local sandwich shop for six months and now you plan to
ask your manager for a raise. How can you convince your manager that you are worth
more money than you are currently being paid?
A) by threatening to quit if he refuses to give you a raise
B) by demonstrating to your manager the marginal revenue product your employment
contributes to the sandwich shop
C) by explaining to him how difficult it is for you to save enough money to go to
college
D) by convincing him that you are a dedicated worker and ready to take on more
responsibilities at the shop
A supplier of an input is unlikely to have bargaining power if
A) the input supplied is specialized.
B) many firms can supply the input.
C) it is the sole supplier of the input.
D) it has a patent on the input.
Figure 9-3
Since 1953 the United States
has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of
the quota. If there was no quota, how many pounds of peanuts would domestic
consumers purchase?
A) 10 million
B) 28 million
C) 34 million
D) 40 million
The largest proportion of M1 is made up of
A) currency.
B) checking account deposits.
C) traveler’s checks.
D) savings account deposits.
E) time deposits.
Figure 11-4
Which of the following combinations of points illustrates changes in the Soviet Union’s
economy from 1950 to 1980?
A) E to B
B) B to D
C) B to E
D) A to B to C
If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate
of interest?
A) -9.5%
B) -3.5%
C) 1.5%
D) 3.5%
E) 9.5%
If firms differentiate their products in different ways and charge different price because
of these differentiation factors, then
A) the law of one price is not violated.
B) transaction costs are being ignored.
C) the firm must not be maximizing profit.
D) demand must be perfectly elastic.
________ is defined as national income + transfers – taxes.
A) Gross private domestic investment
B) GDP
C) Personal income
D) Disposable income
What would happen in the market for knee replacement surgery if insurance companies
started to cover a smaller portion of the cost of the surgery?
A) Demand will decrease, but this will not shift the supply curve.
B) Supply will decrease, but this will not shift the demand curve.
C) Demand and supply will both decrease.
D) Demand will decrease and supply will increase.
Of the following high-income countries, which has the lowest life expectancy at birth?
A) Canada
B) Japan
C) the United Kingdom
D) the United States