A voter will tend to be more informed if the issue in question
a. affects everyone very little.
b. is complicated and difficult to understand.
c. has an intense and a direct effect on the voter.
d. is of special interest to a small group to which the voter does not belong.
Since most colleges and universities charge the same tuition to every student regardless
of what time students choose to take their classes,
a. the schools must develop some type of non-price rationing device.
b. it follows that all classes will have a shortage of seats.
c. it follows that all classes will have a surplus of seats.
d. it follows that some classes will likely have a shortage of seats while other classes
may have a surplus of seats.
e. a and d
Exhibit 3-9
X is produced using input Z. If the price of Z rises, an economist would expect a
movement in the market for X from
a. E to F.
b. A to B.
c. F to E.
d. B to A.
Exhibit 7-5Economic Data for Country Z
What was Country Z€s economic growth rate between year 1 and year 2?
a. 7.3%
b. 8.3%
c. 5.3%
d. 6.8%
Which of the following can a homebuyer pay for indirectly when purchasing a home?
a. good weather
b. a good school district
c. a nice view
d. all of the above
Jake is an excellent barber. However, all customers who come to him for a haircut must
buy a bottle of shampoo. This type of arrangement is known as
a. a tie-in sale.
b. a sweetheart deal.
c. an exclusive contract.
d. a cross subsidy.
When total production is greater than total expenditures, __________ is produced than
households want to buy, which leads to __________ in inventory, which signals firms
that they have __________, which causes firms to cut back production.
a. less; decreases; underproduced
b. less; increases; overproduced
c. more; decreases; underproduced
d. more; increases; overproduced
The law of diminishing marginal utility helps to explain why supply curves are
generally upward sloping.
a. True
b. False
If countries 1 and 2 produce only two goods, A and B, and they have the same
opportunity cost for the production of good A (and thus good B), then
a. each country will specialize in the production of one good and engage in trade.
b. neither country will specialize in the production of a good, but both will engage in
trade.
c. one country will specialize in the production of a good, and both will engage in trade.
d. neither country will specialize in the production of a good, and there will be no
incentive for trade.
The foreign exchange market is the market where
a. goods and services of different countries are exchanged.
b. currencies of different countries are exchanged.
c. transportation services for foreign goods are contracted.
d. either a or c
e. none of the above
The purchasing power parity theory predicts better in the __________ run, and when
there __________ in inflation rates across countries.
a. long; is little difference
b. short; are large differences
c. long; are large differences
d. short; is little difference
Suppose United States net exports are -$50 billion.Then the dollar depreciates.In the
short run, the United States may move downward along the J-curve, with net exports
_________ and the AD curve shifting to the _______________.
a. coming closer to zero; left
b. coming closer to zero; right
c. moving further from zero; left
d. moving further from zero; right
“Economic growth” has occurred if
a. inflation rate between this year and last year is zero or less.
b. GDP this year exceeds the Real GDP this year.
c. unemployment rate this year is above the natural rate of unemployment.
d. Real GDP this year is greater than Real GDP last year.
Raising the required reserve ratio __________ the simple deposit multiplier which will
__________ the economy’s money supply.
a. raises; increase
b. raises; decrease
c. lowers; increase
d. lowers; decrease
Exhibit 9-7
Which point is representative of the economy with an unemployment rate that is greater
than the natural unemployment rate?
a. A
b. B
c. C
d. D
e. E
Suppose the supply of Malaysian rubber increases.If U.S. producers purchase this
rubber as an input, in the United States, this would cause a
a. rightward shift of the AD curve.
b. leftward shift of the AD curve.
c. rightward shift of the SRAS curve.
d. leftward shift of the SRAS curve.
In general, all markets equilibrate at the same speed.
a. True
b. False