1) Rational expectations theory implies that the:
A.aggregate demand curve is vertical.
B.long-run aggregate supply curve is vertical.
C.long-run aggregate supply curve is horizontal.
D.long-run aggregate supply curve is quite flat.
2)
suppose you have a money income of $10, all of which you spend on coke and popcorn.
in the above diagram, the prices of coke and popcorn respectively are:
a.$.50 and $1.00.
b.$1.00 and $.50.
c.$1.00 and $2.00.
d.$.40 and $.50.
3) the following total utility data for products l and m. assume that the prices of l and m
are $3 and $4 respectively and that the consumer’s income is $18.
refer to the above data. how many units of the two products will the consumer
purchase?
a.3 of l and none of m
b.4 of l and 2 of m
c.3 of l and 5 of m
d.2 of l and 3 of m
4) which of the following is a public good?
a.chewing gum
b.bread
c.a professional baseball game
d.street lights in a city
5) Use the below graph to show what happens to
total revenue when: (a) price falls from P1 to P2; (b) price rises from P3 to P2. Explain
your answer in terms of areas of total revenue gained or lost using the alphabetical
letters representing different areas on the graph. (c) Is demand elastic or inelastic? How
do you know?
6) which of the following statements is correct?
a.the value of the independent variable is determined by the value of the dependent
variable.
b.the value of the dependent variable is determined by the value of the independent
variable.
c.the dependent variable designates the “cause” and the independent variable the
“effect.”
d.dependent variables graph as upsloping lines; independent variables graph as
downsloping lines.
7)
the budget line shift from ab to cd in the above figure is consistent with:
a.decreases in the prices of both m and n.
b.an increase in the price of m and a decrease in the price of n.
c.a decrease in money income.
d.an increase in money income.
8) Answer the next question(s) on the basis of the following table for a particular
country in which C is consumption expenditures, Ig is gross investment expenditures, G
is government expenditures, X is exports, and M is imports. All figures are in billions of
dollars. Each question is independent of the other questions.
Refer to the above table. A decrease in the interest rate would:
A.increase the values in column (3) and increase aggregate demand.
B.decrease the values in column (3) and increase aggregate demand.
C.increase the values in column (2) and decrease aggregate demand.
D. decrease the values in column (2) and decrease aggregate demand.
9) Which of the following are all assets to a commercial bank?
A.demand deposits, stock shares, and reserves
B.vault cash, property, and reserves
C.vault cash, property, and stock shares
D.vault cash, stock shares, and demand deposits
10) An increase in the present value of the profit that can be obtained by delaying
resource extraction will lead profit-maximizing firms to:
A.reduce extraction in the present.
B.increase the current rate of extraction.
C.invest in less extraction equipment.
D.hire more workers to support current production.
11) Since 1950, the energy efficiency of the United States economy in terms of
producing goods and services has:
A.not changed.
B.more than doubled.
C.risen about 50 percent.
D.risen more than threefold.
12) gdp is:
a.the monetary value of all goods and services (final, intermediate, and non-market)
produced in a given year.
b.total resource income less taxes, saving, and spending on exports.
c.the economic value of all economic resources used in the production of a year’s
output.
d.the monetary value of all final goods and services produced within a nation in a
specific year.
13)
refer to the above data. the marginal cost of the fifth unit of output is:
a.$3.
b.$62.
c.$80.
d.$78.