1)
In the above diagram, a substantial appreciation of the U.S. dollar with no immediate
change in the U.S. price level would result in a:
A.movement upward along an existing aggregate supply curve such as AS1.
B.movement downward along an existing aggregate supply curve such as AS1.
C.rightward shift of the aggregate supply curve, such as from AS1 to AS2.
D.leftward shift of the aggregate supply curve, such as from AS1 to AS3.
2)
Refer to the above table representing Darcy’s bank account. Assuming that $1000 was
deposited into her account at the beginning of year 1, and no further deposits or
withdrawals were made, what is the value for cell D?
A.$67.4
B.$180
C.$191
D.It cannot be determined.
3) refer to the above diagram. the equilibrium points shown in the diagram along with
the price change that produced the shift of the budget line from ab to ac:
a.are consistent with a downsloping demand curve for product k.
b.imply that the consumer’s money income has declined, but his or her real income has
increased.
c.imply consumer irrationality since the dearer product is being substituted for the
cheaper product.
d.suggest that k is an inferior good.
4) If the dollar depreciates relative to the Russian ruble, the ruble:
A.will be less expensive to Americans.
B.may either appreciate or depreciate relative to the dollar.
C.will appreciate relative to the dollar.
D.will depreciate relative to the dollar.
5) (Consider This) The process of converting turkey entrails and other organic matter
into fuel oil became profitable when conventional oil reached a price of around
_______ per barrel.
A.$40.
B.$60.
C.$80.
D.$100.
6) microeconomics:
a.is the basis for the “after this, therefore because of this” fallacy.
b.is not concerned with details, but only with the overall big picture of the economy.
c.is concerned with individual economic units and specific markets.
d.describes the aggregate flows of output and income.
7) steve went to his favorite hamburger restaurant with $3, expecting to buy a $2
hamburger and a $1 soda. when he arrived he discovered that hamburgers were on sale
for $1, so steve bought two hamburgers and a soda. steve’s response to the decrease in
the price of hamburgers is best explained by:
a.the substitution effect.
b.the income effect.
c.the price effect.
d.a rightward shift in the demand curve for hamburgers.
8) Which of the following would call for inpayments to the United States?
A.gold flows into the United States
B.U.S. firms sell insurance to Brazilian shippers
C.U.S. sends foreign aid to developing countries
D.U.S. imports German automobiles
9) in which phase of the business cycle will the economy most likely experience rising
real output and falling unemployment rates?
a.expansion
b.recession
c.peak
d.trough
10)
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.
11)
On the basis of the above diagram we can say that the firm is earning:
A.a normal profit.
B.an economic profit.
C.neither a normal nor an economic profit.
D.total revenue insufficient to cover its total costs.
12) economists contend that most economic decisions are:
a.random
b.chaotic
c.spontaneous
d.purposeful
13) With which of the following countries does the United States have its largest goods
and services deficit?
A.Canada.
B.Germany.
C.Japan.
D.China.
14)
Refer to the diagram above, representing Slippery Slope Oil Company. A $10 increase
in the user cost would shift:
A.up the extraction cost curve only, and reduce the amount of oil extracted in the
present.
B.up both the extraction cost and total cost curves, and reduce the amount of oil
extracted in the present.
C.up the total cost curve only, and reduce the amount of oil extracted in the present.
D.down the total cost curve, and increase the amount of oil extracted in the future.