Who receives the goods and services produced in the United States depends largely on
A) how income is distributed.
B) how the goods and services are produced.
C) what goods and services are produced.
D) government redistribution.
If the U.S. government implements a tariff on Chinese tire imports all of the following
would be made worse off except
A) U.S. consumers.
B) American tire retailers.
C) Chinese tire manufacturers.
D) American tire manufacturing workers.
Sole proprietorships are ________ type of business.
A) the most profitable
B) the least common
C) the most common
D) the least risky
Typically, the ________ in a country, the higher the level of spending per person on
health care.
A) higher the level of income per person
B) larger the population
C) higher the level of income taxes
D) lower the median age of the population
Figure 3-4
If the price is $15,
A) there would be a surplus of 300 units.
B) there would be a shortage of 300 units.
C) there would be a surplus of 400 units.
D) there would be a shortage of 400 units.
Table 6-3
Over what range of prices is the demand inelastic?
A) over the entire range of prices
B) between $12 and $16
C) between $8 and $16
D) between $2 and $8
In the United States, total health care spending per person has been ________, and
out-of-pocket spending on health care per person has been ________.
A) rising; rising
B) rising; falling
C) falling; rising
D) falling; falling
________ account(s) for between 1 and 4 percent of health care costs in the United
States.
A) The aging population
B) Uninsured patients receiving treatments at hospital emergency rooms that could have
been provided less expensively at doctor’s offices
C) The payments to settle malpractice lawsuits and the premiums doctors pay for
malpractice insurance
D) Advances in medical technology
A consumer is willing to purchase a product up to the point where
A) he spends all of his income.
B) the marginal benefit is equal to the price of the product.
C) the quantity demanded is equal to the quantity supplied.
D) he is indifferent between consuming and saving.
An increase in the demand for American-made goods will
A) increase the supply of dollars on the foreign exchange market.
B) decrease the supply of dollars on the foreign exchange market.
C) increase the demand for dollars on the foreign exchange market.
D) decrease the demand for dollars on the foreign exchange market.
The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to
the information age. What did this technological change do the short-run supply curve?
A) It shifted the short-run aggregate supply curve to the left.
B) It shifted the short-run aggregate supply curve to the right.
C) It moved the economy up along a stationary short-run aggregate supply curve.
D) It moved the economy down along a stationary short-run aggregate supply curve.
Some superstar athletes in the sports industry earn very high levels of income relative to
other occupations, and over time the wage differential has been increasing. What could
have caused this?
A) The supply of star athletes has decreased.
B) The supply of star athletes has increased due to college athletic programs.
C) Technological advances such as cable television has increased the demand for sports
entertainment.
D) The market power of athletes’ unions has increased.
All of the following are examples of explicit cost a firm might incur except
A) the out-of-pocket expense to hire employees.
B) taxes owed to the state government.
C) the rental value of the warehouse space the company owns and uses for itself.
D) the revenue a firm generates in using its resources.
Which of the following is not one of the five competitive forces?
A) the threat from potential entrants
B) the bargaining power of buyers
C) the firm’s ability to differentiate its product
D) the bargaining power of suppliers
When the value of a currency is determined mostly by demand and supply, but with
occasional government intervention, the exchange rate system is defined as
A) fixed.
B) floating.
C) managed float.
D) Bretton Woods.
“Because Coke and Pepsi are substitutes, a decrease in the price of Pepsi will cause the
demand for Coke to decrease. This initial shift in demand for Coke results in a lower
price for Coke; this lower price will cause the demand curve for Coke to shift to the
left.” Which of the following correctly comments on this statement?
A) The statement will be true if consumer tastes for Coke and Pepsi do not change.
B) The statement is false because a change in the price of Coke would not change the
demand for Coke.
C) The statement is false because Pepsi is an inferior good; Coke is a normal good.
D) The statement is false because one cannot assume that Coke and Pepsi are
substitutes for all consumers.