All centrally planned economies
A) have been political dictatorships.
B) started out as market economies.
C) began as mixed economies.
D) have become mixed economies.
The Pre-Existing Condition Insurance Plan is a federally administered part of the
Affordable Care Act, and is designed for people with pre-existing medical conditions to
obtain insurance.By offering health insurance to all U.S. citizens with pre-existing
medical conditions, the Pre-Existing Condition Insurance Plan
A) eliminates asymmetric information for the insurer, but not for the insured.
B) eliminates asymmetric information for the insured, but not for the insurer.
C) eliminates asymmetric information for both the insurer and the insured.
D) reduces, but does not eliminate, asymmetric information for both the insurer and the
insured.
The difference between a firm’s assets and liabilities is its
A) accounting profit.
B) economic profit.
C) net worth.
D) implicit costs.
In 2013, infant mortality in the United States was ________ per 1,000 live births.
A) 5.9
B) 45.4
C) 82.7
D) 228.9
Profit is the difference between
A) marginal revenue and marginal cost.
B) total revenue and variable cost.
C) total revenue and total explicit cost.
D) total revenue and total cost.
If a worker can produce 20 units of output which can be sold for $4 per unit, what is the
maximum wage that firm should pay to hire this worker?
A) $80
B) $80 minus the firm’s profit markup
C) It depends on what the going wage rate is in the labor market.
D) There is insufficient information to answer the question.
Which of the following is a flow in the circular flow model?
A) the flow of goods and services from households to firms
B) the flow of profit and the flow of revenue
C) the flow of income earned by firms and the flow of expenditures earned by
households
D) the flow of revenue received by firms and the flow of payments to resource owners
Figure 3-8
The graph in this figure illustrates an initial competitive equilibrium in the market for
apples at the intersection of D2 and S1 (point C). Which of the following changes would
cause the equilibrium to change to point B?
A) A positive change in the technology used to produce apples and decrease in the price
of oranges, a substitute for apples.
B) An increase in the wages of apple workers and an increase in the price of oranges, a
substitute for apples.
C) An increase in the number of apple producers and a decrease in the number of apple
trees as a result of disease.
D) A decrease in the wages of apple workers and an increase in the price of oranges, a
substitute for apples.
By the year 2019, health care’s share of gross domestic product in the United States is
projected to
A) return to its 1995 level.
B) have declined to only 6.5 percent.
C) be more than three times as high as it was in 1965.
D) reach a level of 75 percent.
How would an increase in the U.S. federal budget deficit affect the exchange rate in the
market for dollars?
A) The exchange rate will increase.
B) The exchange rate will decrease.
C) The exchange rate will not be affected by a change in the federal budget deficit.
D) The impact of the increase in the federal budget deficit on the exchange rate cannot
be predicted.
What impact might a decrease in the U.S. federal budget deficit have on interest rates
and exchange rates in the market for the U.S. dollar? (Assume the exchange rate is
stated in terms of foreign currency per U.S. dollar.)
A) Interest rates and exchange rates increase.
B) Interest rates increase and exchange rates decrease.
C) Interest rates decrease and exchange rates increase.
D) Interest rates and exchange rates decrease.
According to the real business cycle model,
A) increases in aggregate demand raise GDP.
B) increases in aggregate demand lower GDP.
C) increases in aggregate demand do not affect GDP.
D) increases in aggregate demand lower the price level.
According to the quantity theory of money, if the money supply grows at 20 percent
and real GDP grows at 5 percent, then the inflation rate will be
A) 15 percent.
B) 20 percent.
C) 25 percent.
D) 100 percent.