Table 9-10
Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
a. Which person has an absolute advantage in the production of pens? pencils?
b. Which person has a comparative advantage in the production of pens?
c. Which person has a comparative advantage in the production of pencils?
Figure 13-9
Which of the graphs in the figure depicts a monopolistically competitive firm that is
earning economic profits?
A) Panel A
B) Panel B
C) Panel C
D) Panel A and Panel B
Figure 15-1
In the figure above, the money demand curve would move from Money demand1 to
Money demand2 if
A) real GDP decreased.
B) the price level increased.
C) the interest rate decreased.
D) the Federal Reserve sold Treasury securities.
In the United States, currency includes
A) gold, silver, and paper money.
B) checking and savings account deposits.
C) paper money and coins in circulation.
D) traveler’s checks.
If tablet computers are considered substitutes for e-readers, the increase in the price of
tablet computers would, all else equal,
A) increase the demand for e-readers.
B) decrease the demand for e-readers.
C) increase the quantity of e-readers demanded.
D) decrease the quantity of e-readers demanded.
Figure 4-1
Figure 4-1 shows Arnold’s demand curve for burritos.
If the market price is $2.00, what is the consumer surplus on the first burrito?
A) $0.50
B) $1.00
C) $2.00
D) $7.50
A decrease in the demand for eggs due to changes in consumer tastes, accompanied by
a decrease in the supply of eggs as a result of an outbreak of Avian flu, will result in
A) a decrease in the equilibrium quantity of eggs and no change in the equilibrium
price.
B) a decrease in the equilibrium price of eggs and no change in the equilibrium
quantity.
C) a decrease in the equilibrium price of eggs; the equilibrium quantity may increase or
decrease.
D) a decrease in the equilibrium quantity of eggs; the equilibrium price may increase or
decrease.
If economists forecast a decrease in aggregate expenditure, which of the following is
likely to occur?
A) GDP will rise.
B) GDP will fall.
C) Wages will rise.
D) Inventories will fall.
In order to change inflationary expectations in 1979, the Fed’s monetary policy under
Paul Volcker’s leadership resulted in ________ and ________.
A) disinflation; high unemployment
B) steep inflation; low unemployment
C) disinflation; low unemployment
D) steep inflation; high unemployment
E) deflation; high unemployment
Table 4-6
The equations above describe the demand and supply for Aunt Maud’s Premium Hand
Lotion. The equilibrium price and quantity for Aunt Maud’s lotion are $20 and 30
thousand units. What is the value of producer surplus?
A) $600 thousand
B) $300 thousand
C) $150 thousand
D) $30 thousand
Marginal utility can be
A) negative.
B) zero.
C) positive.
D) positive, negative or zero.
Investors in which two countries accounted for about 25 percent of all foreign
purchases of U.S. stocks and bonds in 2012?
A) Canada and the Cayman Islands
B) Japan and China
C) China and Canada
D) Japan and the United Kingdom
Figure 16-6 Watanabe Sensei
operates the only martial arts school in Hartfield. For simplicity, assume that consumers
have identical demand curves and that Sensei knows what this demand curve is. Figure
16-6 shows this demand curve.
If Sensei acts as a monopolist and charges the profit-maximizing price, what is the
consumer surplus received by his customers?
A) the area A + B + C + D
B) the area A + B + C + D + E
C) the area A + B
D) the area A + C + H
Abercrombie & Fitch wants to raise $8 million to finance the construction of a new
store, and the company wishes to raise the funds through direct finance. Which of the
following methods could it use?
A) It could sell $8 million in bonds.
B) It could borrow $8 million from a bank.
C) It could issue $8 million in stocks.
D) It could choose either A or C.