1)
Refer to the above diagram for the Federal funds market. If the Fed supplies $200
billion in reserves, the equilibrium prime interest rate is:
A.6.0 percent.
B.5.5 percent.
C.5.0 percent.
D.undeterminable with the information given.
2) A deficit on the current account:
A.normally causes a surplus on the capital and financial account.
B.normally causes a deficit on the capital and financial account.
C.has no relationship to the capital and financial account.
D.means that a nation is making international transfers.
3) approximately how many workers are employed in the u.s. health care industry?
a.800,000
b.2 million
c.9 million
d.14 million
4) the u.s. census bureau estimates that the net inflow of unauthorized immigrants is
now about:
a.100,000 annually.
b.200,000 annually.
c.350,000 annually.
d.700,000 annually.
5) Which of the following will generate a demand for country X’s currency in the
foreign exchange market?
A.travel by citizens of country X in other countries
B.the desire of foreigners to buy stocks and bonds of firms in country X
C.the imports of country X
D.charitable contributions by country X’s citizens to citizens of developing nations
6)
Which of the above distributions is closest to describing the United States?
A.A
B.B
C.C
D.D
7)
curve (3) in the above diagram is a purely competitive firm’s:
a.total cost curve.
b.total revenue curve.
c.marginal revenue curve.
d.total economic profit curve.
8) The purpose of an expansionary monetary policy is to shift the:
A.aggregate demand curve leftward.
B.aggregate demand curve rightward.
C.aggregate supply curve leftward.
D. investment demand curve leftward.
9) if real disposable income fell during a particular year, we can conclude that:
a.personal taxes increased.
b.inflation occurred.
c.transfer payments declined.
d. none of these necessarily occurred.
10) Pure or economic profit is:
A.the amount by which total revenue exceeds total costs.
B.determined by subtracting explicit costs from total revenue.
C.the return required to retain entrepreneurial talent in some particular line of
production.
D.the return to any resource the supply of which is perfectly inelastic.
11) In a market for pollution rights an increase in demand would:
A.raise the price of pollution rights, but leave the quantity unchanged.
B.stimulate the economic incentive to pollute.
C.increase the actual amount of pollution.
D.induce an increase in the supply of pollution rights.
12)
refer to the above diagram, in which s1 and d1 represent the original supply and
demand curves and s2 and d2 the new curves. in this market the indicated shift in
demand may have been caused by:
a.a decline in the number of buyers in the market.
b.a decline in the price of a substitute good.
c.an increase in incomes if the product is a normal good.
d.an increase in incomes if the product is an inferior good.
13) the price of old baseball cards rises rapidly with increases in demand because:
a.the supply of old baseball cards is inelastic.
b.the supply of old baseball cards in elastic.
c.the demand for old baseball cards is inelastic.
d.the demand for old baseball cards is elastic.
14) the slope of a straight line can be determined by:
a.comparing the absolute horizontal change to the absolute vertical change between two
points on the line.
b.comparing the absolute vertical change to the absolute horizontal change between two
points on the line.
c.taking the reciprocal of the vertical intercept.
d.comparing the percentage vertical change to the percentage horizontal change
between two points on the line.