Figure 10-1
Refer to Figure 10-1. Which of the following is consistent with the graph depicted
above?
A) An expected recession decreases the profitability of new investment.
B) Technological change increases the profitability of new investment.
C) The government runs a budget surplus.
D) Households become spendthrifts and begin to save less.
Figure 2-9
Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland. Each
country produces two goods, snow cones and popsicles.
Refer to Figure 2-9. Which country has a comparative advantage in the production of
snow cones?
A) Greenland
B) They have equal productive abilities.
C) Iceland
D) neither country
Which of the following is a characteristic of stock?
A) Stock represents a promise to repay a fixed amount of funds.
B) The face value or principal plus interest is repaid at a specified period of time.
C) The length of coupon payments is fixed by the stated maturity period.
D) Stock represents ownership in a firm.
Currency traders expect the dollar to depreciate. What impact will this have on
equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will
decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
D) The dollar will depreciate, and the change in the equilibrium quantity of dollars
exchanged cannot be determined.
In the United States in 2012, of the firms that employed more than 200 workers that
offer health insurance to workers, about ________ of employees did not accept the
coverage.
A) 2%.
B) 38%.
C) 62%.
D) 98%.
You are given the following market data for Venus automobiles in Saturnia.
Demand: P = 35,000 – 0.5Q
Supply: P = 8,000 + 0.25Q
where P = Price and Q = Quantity.
a. Calculate the equilibrium price and quantity.
b. Calculate the consumer surplus in this market.
c. Calculate the producer surplus in this market.
Personal income is defined as
A) national income less retained earnings plus transfer payments and plus interest on
government bonds.
B) national income plus retained earnings less transfer payments and less interest on
government bonds.
C) national income less depreciation.
D) national income less personal taxes.
Historically, the largest U.S. federal budget deficits as a percentage of GDP in the 20th
century occurred during
A) World War I and World War II.
B) the Great Depression.
C) 1970-1997.
D) the Vietnam war.
E) 1998-1999.
Table 4-2
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to
pay for a concert ticket. If the price of one of the tickets is $20
A) everyone will buy a ticket except for Zachary.
B) only Violet and Walter will buy tickets.
C) Xavier’s consumer surplus is $50.
D) the total consumer surplus from the purchase of tickets will be $122.
If the Fed chose to change its policy actions implemented during the heart of the
recession faster than the timing suggested by the White House, this would be an
indication of the Fed’s
A) lack of credibility.
B) independence.
C) changing its monetary policy target.
D) frictional relationship with the White House.
If firms are more optimistic that future profits will rise and remain strong for the next
few years, then
A) investment spending will fall.
B) investment spending will rise.
C) investment spending will remain unaffected.
D) investment spending will rise and then fall.
Two economists from Northwestern University estimated the benefit households
received from subscribing to broadband Internet service. They found that in the year
they analyzed, 47 million consumers paid an average of $36 per month to subscribe to a
broadband Internet service, and estimated the value of total consumer surplus for these
subscribers was equal to $890.5 million. Based on these numbers, what was the average
monthly consumer surplus per subscriber for broadband Internet service?
A) $0.05
B) $0.77
C) $13.06
D) $18.95
If a decrease in income leads to in a decrease in the demand for ice cream, then ice
cream is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.
Which of the following is not one of the ways that the German government ended the
hyperinflation of the 1920s?
A) negotiating a new agreement with the Allies (the United States, Great Britain,
France, and Italy) that reduced its reparations payments
B) reducing government expenditures and raising taxes to balance its budget
C) raising the required reserve ratio to reduce bank loans
D) replacing the existing mark with a new mark
How has the growing popularity of factory outlet stores affected the market for clothing
at retail department stores?
A) the demand curve for clothing at retail department stores shifts to the right.
B) the demand curve for clothing at retail department stores shifts to the left.
C) the supply curve for clothing at retail department stores shifts to the right.
D) the supply curve for clothing at retail department stores shifts to the left.
Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars
B) a decrease in the demand for dollars
C) a decrease in the supply of dollars
D) a decrease in the demand for imports from foreign countries