1) The Federal Open Market Committee (FOMC) is made up of:
A.the chair of the Board of Governors along with the 12 presidents of the Federal
Reserve Banks.
B.the seven members of the Board of Governors along with the president of the New
York Federal Reserve Bank.
C.the seven members of the Board of Governors of the Federal Reserve System along
with the three members of the Council of Economic Advisers.
D.the seven member of the Board of Governors of the Federal Reserve System along
with the president of the New York Federal Reserve Bank and four other Federal
Reserve Banks presidents on a rotating basis.
2) In 2007, the public debt was about:
A.$9 trillion.
B.$7.9 trillion.
C.$470 billion.
D.$184 billion.
3) Suppose two nations are considering specializing in either calculators or personal
computers. If solely producing calculators, country A can produce 300 and country B
can produce 400. If solely producing personal computers, country A can produce 150
and country B can produce 100. Assume their labor forces are of equivalent size.
(a)Which country has the comparative advantage in calculators? In computers?
(b)It is predicted that current demand will yield an exchange of 3 calculators for every 1
computer. Will trade occur? If not, is it because both countries are against trade?
4) refer to the above diagram. the profit-maximizing level of output for this firm:
a.is at point a
b.is at point b
c.is at point c
d.cannot be determined from the information given
5) Which of the following would reduce GDP by the greatest amount?
A.a $20 billion increase in taxes
B.$20 billion increases in both government spending and taxes
C.$20 billion decreases in both government spending and taxes
D.a $20 billion decrease in government spending
6) When the elasticity coefficient for resource demand is greater than one, resource
demand is:
A.inelastic.
B.elastic.
C.unit elastic.
D.perfectly inelastic.
7) (Last Word) Chief executive officers (CEOs) of large American corporations:
A.have higher average salaries than CEOs of similar-size firms in other industrial
nations.
B.have similar salaries, on average, to CEOs of same-size firms in other industrial
nations.
C.are, on average, older than CEOs of same-size firms in other industrial nations.
D.are, on average, younger than CEOs of same-size firms in other industrial nations.
8) Which of the following is a component of the equation of exchange?
A.consumption
B.the interest rate
C.investment
D.the velocity of money
9) purely competitive firms and pure monopolists are similar in that:
a.the demand curves of both are perfectly elastic.
b.significant entry barriers are common to both.
c.both are price makers.
d.both maximize profit where mr = mc.
10)
refer to the above diagram. arrows (1) and (3) are associated with:
a.the money market.
b.the resource market.
c.the product market.
d.international trade.
11) A nation’s export supply curve for a specific product:
A.is upsloping.
B.shows the amount of the product it will export at prices below its domestic price.
C.lies below its import demand curve for the product.
D.depends on domestic supply of the product, but not on domestic demand.
12)
Refer to the above diagram of a market for pollution rights. Without this market for
pollution rights, the quantity (tons) of pollution would be:
A.Q3, if demand is D2.
B.Q1, if demand is D1.
C.Q2, if demand is D2.
D.Q1, if demand is D2.
13) in 2007, the greatest number of immigrants arriving in the united states came from:
a.india and el salvador.
b.the dominican republic and cuba.
c.china and vietnam.
d.mexico and china.