Table 11-7
Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
What is the variable cost of production when the firm produces 115 lanterns?
A) $1,556
B) $1,157
C) $956
D) $10.05
The current exchange rate system in the United States is best described as a
A) silver standard.
B) managed float exchange rate system.
C) fixed exchange rate system.
D) gold standard.
The deflation of the 1930s impacted the U.S. economy because it led some consumers
to ________ and because it ________.
A) postpone purchases while they waited for prices to fall even lower; increased the
burden on borrowers
B) demand higher wages in anticipation of prices eventually rising again; increased
manufacturing since firms could afford to hire more labor
C) borrow more money since money was now cheap; reduced the amount of money
consumers would have to pay back on their outstanding loans
D) increase purchases to take advantage of the falling prices; increased the burden on
lenders
In the United States during the Great Depression, tariffs were ________ than they were
following World War II, and ________ than they are today.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
If you were to ask your employer for a raise, which of the following would be your
most effective argument?
A) “I have a job offer at another firm that will pay me more than my current wage.”
B) “I am willing to work more hours each week.”
C) “Increases in my productivity have resulted in greater revenue and profits for your
business.”
D) “My marginal product is greater than my current wage.”
Figure 15-16 Figure 15-16 shows the
market demand and cost curves facing a natural monopoly.
In the absence of any government regulation, the profit-maximizing owners of this firm
will produce ________ units and charge a price of ________.
A) Q0 units; P0
B) Q1 units; P1
C) Q1 units; P4
D) Q3 units; P3
To combat a recession with discretionary fiscal policy, Congress and the president
should
A) decrease government spending to balance the budget.
B) decrease taxes to increase consumer disposable income.
C) lower interest rates and increase investment by increasing the money supply.
D) raise taxes on interest and dividends, but not on personal income.
Figure 3-1
A decrease in the price of the product would be represented by a movement from
A) A to B.
B) B to A.
C) D1 to D2.
D) D2 to D1.
For each of the following pairs of products state which are complements, which are
substitutes, and which are unrelated.
a. Swim fins and scuba tanks
b. Coca Cola and Volkswagens
c. Printers and ink cartridges
d. Ice and ice chests
e. Heineken and Corona
Which of the following is a macroeconomics question?
A) What determines the inflation rate?
B) What determines the production of DVDs?
C) What factors determine the price of carrots?
D) What determines the wage of auto workers?
Ethan Nicholas, who developed the iShoot application for the iPhone 3G, found that to
maintain sales in a profitable competitive market, the price of a product
A) will usually rise.
B) will usually fall.
C) will usually remain stable.
D) will eventually fall to zero.
If firms and workers have rational expectations, including knowledge of the policy
being used by the Federal Reserve, the short-run Phillips curve will be
A) negatively sloped.
B) positively sloped.
C) vertical.
D) flatter in the long run than it is in the short run.
Figure 13-13
What is the area that represents the firm’s profit?
A) profit = 0
B) P4edP2
C) P4eaP1
D) P3baP2
Some firms practice odd pricing because
A) they believe that customers will buy a larger quantity with an odd price.
B) it is a way to price discriminate.
C) it is too difficult for sellers to reeducate buyers into accepting even prices.
D) it lowers transactions costs.
Table 12-15
Using the table above, answer the following questions. The numbers in the table are in
billions of dollars.
a. What is the equilibrium level of real GDP?
b. What is the MPC?
c. If investment spending declines by $10 billion, what will happen to equilibrium
GDP?
The reason that the coffeehouse market is monopolistically competitive rather than
perfectly competitive is because
A) barriers to entry are very low.
B) there are many firms in the market.
C) products are differentiated.
D) entry into the market is blocked.
Table 8-27
The components of national income for an economy are represented in Table 8-27
above. All values are in billions of dollars. What is the level of disposable personal
income for this economy?
A) $1,080 billion
B) $1,010 billion
C) $980 billion
D) $860 billion
Table 20-16
Looking at the table above, real wages ________ from 2011 to 2012, and real wages
________ from 2012 to 2013.
A) rose; rose
B) rose; fell
C) fell; rose
D) fell; fell
Specializing in the production of a good or service in which one has a comparative
advantage enables a country to do which of the following?
A) never have to engage in trade with other nations
B) increase the variety of products that it can produce with a decrease in resources
C) consume a combination of goods that lies outside its own production possibilities
frontier
D) produce a combination of goods that lies outside its own production possibilities
frontier
Table 4-8
Table 4-8 shows the demand and supply schedules for the low-skilled labor market in
the city of Westover.
Suppose that the quantity of labor demanded increases by 40,000 at each wage level.
What are the new free market equilibrium hourly wage and the new equilibrium
quantity of labor?
A) W = $10.00; Q = 390,000
B) W = $9.50; Q = 380,000
C) W = $8.50; Q = 380,000
D) W = $8.00; Q = 390,000