1) The following information is for a closed economy:
Refer to the above information. If both government spending and taxes are zero, the
equilibrium level of GDP is:
A.$200.
B.$300.
C.$400.
D.$500.
2) labor productivity is defined as:
a.total output/worker-hours.
b.nominal gdp minus real gdp.
c.the ratio of real capital to worker-hours.
d.the annual increase in nominal gdp per worker.
3) The infant industry argument for tariffs is criticized:
A.because it is difficult to determine which industries merit protection.
B.because direct subsidies are probably a better means of stimulating such industries.
C.because the tariffs may remain after the industry reaches maturity.
D.for all of these reasons.
4)
Refer to the above market for money diagrams. Curve D1 represents the:
A.total demand for money.
B.transactions demand for money.
C.asset demand for money.
D.stock of money.
5) corporate profits are found by:
a.summing corporate income taxes, dividends, and undistributed corporate profits.
b.adding corporate income taxes and dividends, and subtracted undistributed corporate
profits.
c.subtracting corporate income taxes from the sum of dividends and undistributed
corporate profits.
d.summing dividends, undistributed corporate profits, and proprietors’ income.
6) The following information about the cost ratios for two products-fish (F) and chicken
(C)-in countries Singsong and Harmony. Assume that production occurs under
conditions of constant costs and these are the only two nations in the world.
Singsong: 1F = 2C
Harmony: 1F = 4C
Refer to the above information. If these two nations specialize based on comparative
advantage:
A.Singsong will both produce chicken and catch fish.
B.Harmony will both produce chicken and catch fish.
C.Harmony will produce chicken and Singsong will catch fish.
D.Singsong will produce chicken and Harmony will catch fish.
7) If the United States has full employment and the dollar dramatically depreciates in
value, we can expect (other things equal):
A.both U.S. imports and U.S. exports to rise.
B.both U.S. imports and U.S. exports to fall.
C.U.S. exports to fall and U.S. imports to increase.
D.inflation to occur.
8) In a two-nation model, the equilibrium world price will occur where:
A.one nation’s export supply curve intersects the other nation’s import demand curve.
B.exports are exactly twice the level of imports.
C.both nations’ export supply curves are horizontal.
D.both nations’ import demand curves are vertical.
9) If aggregate demand decreases, and as a result, real output and employment decline
but the price level remains unchanged, it is most likely that:
A.the money supply has declined.
B.the price level is inflexible downward and a recession has occurred.
C.cost-push inflation has occurred.
D. productivity has declined.
10) Use the figures in the table below to answer the following questions.
(a)What is the value of M1?
(b)What is the value of M2?
11)
Refer to the above diagram. The impact of the public sector on the equilibrium GDP:
A.is expansionary.
B.is contractionary.
C.is neutral.
D.cannot be determined from the information given.
12)
Refer to the above diagram for a specific economy. Which of the following best
describes the relationship shown by this curve?
A.The demand for labor is large when the rate of inflation is small.
B.When the rate of unemployment is high, the rate of inflation is high.
C.The rate of inflation and the rate of unemployment are inversely related.
D.The rate of inflation and the rate of unemployment are directly related.
13) the phase of the business cycle in which real gdp declines is called:
a.the peak.
b.an expansion.
c.a recession.
d.the trough.
14)
refer to the above diagram. if price falls from $10 to $2, total revenue:
a.rises from a + b to a+ b + d + c and demand is elastic.
b.falls from a + d to b + c and demand is inelastic.
c.rises from c + d to b + a and demand is elastic.
d.falls from a + b to b + c and demand is inelastic.
15) The supply of land is:
A.almost perfectly inelastic.
B.negatively sloped.
C.relatively elastic.
D.perfectly elastic.
16) the demand for commodity x is represented by the equation p = 100 – 2q and supply
by the equation p = 10 + 4q.
refer to the above information. if demand changed from p = 100 – 2q to p = 130 – q, the
new equilibrium quantity is:
a.15
b.20
c.24
d.32
17)
refer to the above tables. suppose that the amount and quality of resources are the same
in both countries. we can conclude that:
a.duckistan is technologically better than herbania at producing military goods.
b.herbania is technologically better than herbania at producing both military goods and
civilian goods.
c.the total opportunity cost of producing 4 units of military goods is the same in both
countries.
d.herbania is technologically superior to duckistan in producing civilian goods.
18) Elephant populations have:
A.expanded everywhere because of state control of elephant populations.
B.declined in countries where they are owned by local villages, and expanded where
they are owned by the state.
C.expanded in countries where they are owned by local villages, and declined where
they are owned by the state.
D.declined everywhere, regardless of whether property rights over elephants are
recognized.
19) which of the following statements is correct?
a.the u.s. population has increased more rapidly than real gdp in recent decades.
b.improved education and training of labor is the most important source of u.s.
productivity growth.
c.the average american factory worker has about 16 years of formal education.
d.the amount of real capital used per worker has increased historically in the united
states.
20) for a purely competitive firm total revenue:
a.is price times quantity sold.
b.increases by a constant absolute amount as output expands.
c.graphs as a straight upsloping line from the origin.
d.has all of these characteristics.