1) the larger the positive cross elasticity coefficient of demand between products x and
y, the:
a.stronger their complementariness.
b.greater their substitutability.
c.smaller the price elasticity of demand for both products.
d.the less sensitive purchases of each are to increases in income.
2) When economists say that money serves as a medium of exchange, they mean that it
is:
A.a way to keep wealth in a readily spendable form for future use.
B.a means of payment.
C.a monetary unit for measuring and comparing the relative values of goods.
D.declared as legal tender by the government.
3) suppose nominal gdp in 2006 was $100 billion and in 2007 it was $260 billion. the
general price index in 2006 was 100 and in 2007 it was 180. between 2006 and 2007
the real gdp rose by approximately:
a.160 percent.
b.44 percent.
c.37 percent.
d.12 percent.
4) the owners of a firm face unlimited liability for the firm’s debts in:
a.a corporation.
b.a partnership, but not in a proprietorship.
c.a proprietorship, but not in a partnership.
d.both a proprietorship and a partnership.
5)
refer to the above information. average fixed cost is:
a.
b.
c.
d.
6) One consequence of the long-run problem faced by farms has been a:
A.rapid increase in the price of farm output.
B.massive exit of workers from agriculture to other sectors of the economy.
C.smaller average farm size.
D.reduction in U.S. exports of farm products.
7) firms seek to maximize:
a.per unit profit.
b.total revenue.
c.total profit.
d.market share.
8) the fundamental invention underpinning the recent productivity acceleration is the:
a.microchip.
b.fuel cell.
c.internet.
d.personal computer.
9) When the required reserve ratio is increased, the excess reserves of member banks
are:
A.reduced, but the multiple by which the commercial banking system can lend is
unaffected.
B.reduced and the multiple by which the commercial banking system can lend is
increased.
C.increased and the multiple by which the commercial banking system can lend is
increased.
D. reduced and the multiple by which the commercial banking system can lend is
reduced.
10) In 2006, a household with an annual income of $20,000 would find itself in the:
A.highest quintile of the household income distribution.
B.lowest quintile of the household income distribution.
C.second lowest quintile of the household income distribution.
D.second highest quintile of the household income distribution.
11)
refer to the above diagram. the movement from curve (a) to curve (c) suggests an
improvement in civilian goods technology but not in war goods technology.
12) the united states’ economy is considered to be at full employment when:
a.90 percent of the total population is employed.
b.90 percent of the labor force is employed.
c.about 4-5 percent of the labor force is unemployed.
d. 100 percent of the labor force is employed.