1) government transfer payments:
a.have been virtually eliminated by federal revenue sharing.
b.have virtually no effect on the distribution of income.
c.make the distribution of income less equal.
d.make the distribution of income less unequal.
2) Other things equal, an improvement in productivity will:
A.shift the aggregate demand curve to the left.
B.shift the aggregate supply curve to the left.
C.shift the aggregate supply curve to the right.
D.increase the price level.
3) Which of the following bargaining tactics is illegal?
A.a lockout
B.a strike
C.refusal to meet with union representatives
D.hiring strikebreakers
4) Which of the following actions by the Fed will increase commercial bank lending
potential?
A.Raising the reserve ratio.
B.Increasing the Federal funds rate target.
C.Expanding the amount of reserves available through the term auction facility.
D.Selling bonds to commercial banks and the public.
5) A competitive employer should hire additional labor as long as:
A.the MRP exceeds the wage rate.
B.the wage rate is less than MP.
C.average product exceeds MP.
D.MC exceeds MR.
6) (consider this) according to the consider this box about hypothetical countries slogo,
sumgo, and speedo, small differences in __________ make for large differences in
_________ over several decades, assuming the same growth of population for each
country.
a.inflation rates; unemployment rates
b.unemployment rates; economic growth rates
c.economic growth rates: real gdp per capita
d.tax rates; real gdp per capita
7) in a competitive market:
a.demand will not always reflect all external benefits.
b.demand will always reflect all external benefits.
c.supply will always reflect all external costs.
d.supply will always reflect all external benefits.
8) (consider this) consumers might leave a fast-food restaurant without being served
because:
a.they are misinformed about the marginal cost and marginal benefits of the food being
served.
b.they conclude that the marginal cost (monetary plus time costs) exceeds the marginal
benefit.
c.the environment is not conducive to a rational choice.
d.the lines waiting for service are not of equal length.
9) When investment remains the same at each level of GDP in a private closed
economy, the slope of the aggregate expenditures schedule:
A.exceeds the MPC.
B.is less than the MPC.
C.equals the MPS.
D.equals the MPC.
10)
In the above diagram, at $10 million of R&D expenditure the:
A.expected rate of return exceeds the interest rate cost of funds.
B.firm is spending an optimal amount on R&D.
C.interest rate cost of funds exceeds the expected rate of return.
D.marginal benefit of R&D is less than the marginal cost of R&D.