An example of a seasonally unemployed worker would be
A) a software engineer who is laid off because of declining demand for the software he
writes.
B) a day care provider who quits his job to go back to school.
C) a General Motors employee loses her job because the company is downsizing its
work force.
D) a ski lift operator who loses his job when the snow melts in the spring.
E) a mother who quits her job to stay home with her children.
The explicit cost of production is also called
A) variable cost.
B) accounting cost.
C) direct cost.
D) overhead cost.
Which of the following is an example of a worker experiencing cyclical
unemployment?
A) a worker who changes jobs to move closer her family
B) an assembly line worker who loses his job because of automation
C) a freightliner employee that got laid off because of the recession of 2007-2009
D) a lifeguard who was hired during the summer season is laid off after summer is over
E) a worker who quits his job because he does not get along with his boss
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the
change in GDP, holding everything else constant? (Assume the price level stays
constant.)
A) a $300 billion decrease in GDP
B) a $300 billion increase in GDP
C) a $30 billion increase in GDP
D) a $133.33 billion decrease in GDP
E) a $133.33 billion increase in GDP
In what year was the Bretton Woods system of currency exchange set up?
A) 1912
B) 1924
C) 1944
D) 1969
Which antitrust law prohibited firms from buying stock in competitors and from having
directors serve on the boards of competing firms?
A) the Clayton Act
B) the Securities and Exchange Act
C) the Sherman Act
D) the Robinson-Patman Act
Figure 3-4
At a price of $10, how many units will be sold?
A) 200
B) 400
C) 600
D) 800
Phil Harrison is a welder who works on skyscrapers and extension bridges. Phil’s
brother William is also a welder but he works in a manufacturing plant where he does
all of his welding on ground level. Which of the following would not explain why Phil
earns a higher wage than his brother?
A) cognitive dissonance
B) Phil has greater experience as a welder than his brother has.
C) Phil’s marginal revenue product is greater than William’s marginal revenue product.
D) Phil’s job is more hazardous than William’s job.
Governments grant patents to
A) compensate firms for research and development costs.
B) encourage competition.
C) encourage low prices.
D) encourage firms to reveal secret production techniques.
When the coupon rate on newly issued bonds decreases relative to older, outstanding
bonds, what happens?
A) The market price of the older bond falls in the secondary market.
B) The market price of the older bond rises in the secondary market.
C) Older bonds can still be sold at their face value.
D) Older bonds will sell for more than their face value.
What are property rights?
A) the title to ownership of any physical asset
B) a legal document verifying ownership of intangible assets
C) the rights individuals or firms have to the exclusive use of their property, including
the right to buy or sell it
D) the right of the government to appropriate private assets for the good of society
Figure 11-4
The movement from E to B to D in the figure above illustrates
A) an improvement in technology.
B) a decline in capital per worker.
C) diminishing returns to capital.
D) diminishing returns to labor.
Which of the following statements is true?
A) As the wage rate rises, the substitution effect decreases the opportunity cost of
leisure and causes a worker to devote more time to working and less time to leisure.
B) As the wage rate rises, the substitution effect increases the opportunity cost of leisure
and causes a worker to devote more time to working and less time to leisure.
C) As the wage rate rises, the income effect increases the opportunity cost of leisure and
causes a worker to devote more time to working and less time to leisure.
D) As the wage rate rises, the income effect causes a worker to devote more time to
work and less time to leisure.
The possibility that the economy may benefit from having market power, rather than
being very competitive, is closely identified with which famous economist?
A) Arnold Harberger
B) Joseph Schumpeter
C) Sergey Brin
D) Donald Turner
Which of the following generates allocative efficiency in a market economy?
A) national government intervention
B) voluntary exchange between buyers and sellers
C) United Nations rules for competition
D) equity
Figure 4-8 Figure 4-8 shows the market for
apartments in Springfield. Recently, the government imposed a rent ceiling of $1,000
per month. What is the value of producer surplus after the imposition of the ceiling?
A) $40,000
B) $100,000
C) $300,000
D) $430,000
One result of the financial meltdown of the late 2000s was that mortgage institutions
________ and ________ were brought under direct control of the government.
A) Fannie Mae; Freddie Mac
B) Glass Steagall; Sarbanes Oxley
C) Goldman Sachs; Morgan Stanley
D) Lehman Brothers; FDIC
Which of the following is an example of an activity undertaken by an entrepreneur?
A) deciding whether to purchase a gasoline-powered automobile or an electric vehicle
B) being appointed as the head of a charitable organization
C) running for a seat on the city council
D) starting your own cigar manufacturing business
Article Summary. According to the International Energy Agency (IEA), increased
oil production resulting from U.S. shale oil has invigorated the North American oil
industry and has created a global supply shock. The shale oil and gas industry has
generated tens of billions of dollars in revenues and hundreds of thousands of new
jobs, and could result in the United States changing from being the world’s largest
oil importer to a net exporter within a few years. An IEA forecast predicts that
because of shale oil, the United States will become the world’s largest oil producer
by 2017, with supply growing by 3.9 million barrels per day from 2012-2018.
Source: Denise Roland, and AFP, “US shale energy creates global oil ‘supply
shock’,” Telegraph, May 14, 2013.
The supply shock mentioned in the article summary may well result in a decrease in the
price of oil. After an unexpected decrease in the price of oil, the long-run adjustment
________ the price level and ________ the unemployment rate as they return to their
original levels.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Suppose that when the price of ice cream increases, Liza decreases her purchase of hot
fudge. To Liza,
A) ice cream and hot fudge are complements.
B) ice cream and hot fudge and substitutes.
C) ice cream and hot fudge are normal goods.
D) ice cream is a normal good and hot fudge is an inferior good.