What is the Congressional act, enacted in 1933 and repealed in 1999, which prevented
financial firms from being both commercial banks and investment banks?
A) the Sarbanes-Oxley Act
B) the Glass-Steagall Act
C) the Taft-Hartley Act
D) the Cellar-Kefauver Act
In 2004, hurricanes damaged a large portion of Florida’s orange crop. As a result of this,
many orange growers were not able to supply fruit to the market. At the pre-hurricane
equilibrium price (i.e., at the initial equilibrium price), we would expect to see
A) a surplus of oranges.
B) the quantity demanded equal to the quantity supplied.
C) a shortage of oranges.
D) an increase in the demand for oranges.
Statistics on real GDP during World War II may give a misleading indication of whether
World War II was a period of prosperity because
A) inflation may have been considerably higher than estimated.
B) most of the increased production was for military goods, not consumption goods.
C) government agents purposely inflated the production numbers to maintain American
support for the war.
D) government agencies were shorthanded and did a particularly poor job of collecting
data.
Of the following high-income countries, which has the highest obesity rate?
A) Canada
B) Japan
C) the United Kingdom
D) the United States
Table 2-20
Table 2-20 shows the number of labor hours required to produce a wristwatch and a
pound of rice in Japan and Thailand.
Japan has a comparative advantage in the production of
A) rice.
B) wristwatches.
C) both products.
D) neither product.
Figure 9-3 Since 1953 the
United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates
the impact of the quota. If there was no quota, how many pounds of peanuts would be
imported?
A) 16 million
B) 28 million
C) 30 million
D) 40 million
Economists assume that the goal of consumers is to
A) do as little work as possible to survive.
B) make themselves as well off as possible.
C) expend all their income.
D) consume as much as possible.
The difference between the ________ and the ________ from the sale of a product is
called producer surplus.
A) lowest price a firm would have been willing to accept; price it actually receives
B) highest price a firm wold have been willing to accept; lowest price it was willing to
accept
C) cost to produce a product; price a firm actually receives
D) cost to produce a product; profit received
Arnold Kim began blogging about Apple products during his fourth year of medical
school. Kim’s website, MacRumors.com, became so successful that he decided to give
up his medical career and work full time on his website, despite the nearly $200,000 he
had invested in his education. In making his decision, the $200,000 he spent on his
education
A) should be ignored since it represents a sunk cost.
B) should be considered since it is money he has spent and needs to recoup.
C) should be ignored only if Kim can earn more than $200,000 by running his website.
D) should be considered since it is money he could have used to invest in his website.
Figure 13-1
Ceteris paribus, an increase in personal income taxes would be represented by a
movement from
A) AD1 to AD2.
B) AD2 to AD1.
C) point A to point B.
D) point B to point A.
Actual investment spending includes spending by consumers on
A) durable goods.
B) nondurable goods.
C) new houses.
D) services.