1) U.S. firms collectively devote the largest portion of their total R&D spending to:
A.applied research (pursuing invention).
B.basic scientific research.
C.innovation and diffusion.
D.financing startup firms.
2) In the table below are aggregate demand and supply schedules.
(a)On the graph below, plot the aggregate demand curve shown in columns (1) and (2)
in the above table, and label this curve AD1.
(b)On the graph below, plot the aggregate supply curve shown in columns (1) and (4) in
the above table; and label this curve AS.
(c)What is the level of equilibrium real domestic output and price level?
(d)Now assume that aggregate demand changes. Use columns (1) and (3) to plot the
new aggregate demand curve; and label this curve AD2.
(e)What is the new level of equilibrium real domestic output and price level?
3) The next four questions refer to the following price and output data over a five-year
period for an economy that produces only one good. Assume that year 2 is the base
year.
(a)If year 2 is the base year, give the price index for year 3.
(b)Give the nominal GDP for year 4.
(c)What is the real GDP for year 4?
(d)Tell which years you would deflate nominal GDP and which years you would inflate
nominal GDP in finding real GDP.
4) the law of supply:
a.reflects the amounts that producers will want to offer at each price in a series of
prices.
b.is reflected in a downsloping supply curve.
c.shows that the relationship between producer revenue and quantity supplied is
negative.
d.reflects the income and substitution effects of a price change.
5) Extraction costs of a non-renewable resource include the:
A.cost of removal from the ground only.
B.cost of removal from the ground plus the cost of preparation for sale.
C.cost of removal from the ground, the cost of preparation for sale, and the cost of not
being able to extract and sell the resource in the future.
D.cost of removal from the ground plus replanting costs.
6) The short-run aggregate supply curve represents circumstances where:
A.both input and output prices are fixed.
B.both input and output prices are flexible.
C.input prices are fixed, but output prices are flexible.
D.input prices are flexible, but output prices are fixed.
7) If M is $300, P is $4, and Q is 200, then V must be:
A.4.
B.2 2/3.
C.1.
D.3.
8)
Refer to the above table. The after-tax MPS shown is:
A..1.
B..2.
C..33.
D..4.
9)
Refer to the above data. How many workers will this profit-maximizing firm choose to
employ?
A.6
B.5
C.4
D.3
10) in the health care market:
a.demand has increased relative to supply.
b.supply has increased relative to demand.
c.neither demand nor supply has changed significantly in the past two decades.
d.the concepts of demand and supply are irrelevant.
11)
the above diagram concerns supply adjustments to an increase in demand (d1to d2) in
the immediate market period, the short run, and the long run. in the immediate market
period the increase in demand will:
a.have no effect on either equilibrium price or quantity.
b.increase equilibrium price, but not equilibrium quantity.
c.increase equilibrium quantity, but not equilibrium price.
d.increase both equilibrium price and quantity.
12) According to the standard government definitions, the percentage of the U.S.
population now considered to be living in poverty is about:
A.24.1 percent.
B.20.5 percent.
C.5.8 percent.
D.12.3 percent.
13) Suppose the balance on the financial account is -$300 billion and the balance on the
capital account is +$5 billion. The size of the current account is:
A.+$295 billion.
B.-$295 billion.
C.+$305 billion.
D.+$5 billion.
14)
refer to the above diagram. the firm will produce at a loss if price is:
a.less than p1
b.p2
c.p3
d.p4
15)
refer to the above diagram which is a rectangular hyperbola, that is, a curve such that
each rectangle drawn from any point on the curve will be of identical area. if this
rectangular hyperbola was a demand curve, we could say that it would be:
a.elastic at high prices and inelastic at low prices.
b.elastic at low prices and inelastic at high prices.
c.impossible to generalize about its elasticity.
d.of unit elasticity throughout.
16) answer the next question(s) on the basis of the following five data sets wherein it is
assumed that the variable shown on the left is the independent variable and the one on
the right is the dependent variable. assume in graphing these data that the independent
variable is shown on the horizontal axis and the dependent variable on the vertical axis.
refer to the above data sets. the vertical intercept is negative for:
a.none of the data sets.
b.data sets 1 and 3 only.
c.data sets 2 and 4 only.
d.data sets 1 and 5 only.
17) The concept of investment in human capital indicates that:
A.union workers are better educated and more productive than nonunion workers.
B.expenditures on education can be explained in essentially the same way as
expenditures on machinery and equipment.
C.worker productivity correlates negatively with annual earnings.
D.the level of education is unrelated to the level of one’s income.
18) Which of the following statements is correct?
A.Interest rates and bond prices vary directly.
B.Interest rates and bond prices vary inversely.
C.Interest rates and bond prices are unrelated.
D. Interest rates and bond prices vary directly during inflations and inversely during
recessions.
19) Economic growth in the DVCs might increase if IACs:
A.reduce their tariffs and import quotas.
B.encourage more immigration of high-skilled DVC workers.
C.outlaw direct private investment abroad by IAC corporations.
D.discourage capital flight to the DVCs.
20)
Refer to the above diagram. Which tax system will generate the largest cyclical
deficits?
A.T4
B.T3
C.T2
D.T1