How is a stock’s price-earnings ratio found?
A) by dividing the dividend by the closing price of the stock
B) by dividing the dividend by the firm’s earnings per share
C) by dividing current market price of the stock by the firm’s earnings per share
D) by subtracting the firm’s earnings per share from the closing price of the stock
Figure 12-1
If the economy is at a level of aggregate expenditure given by point K,
A) the economy is in equilibrium.
B) production is greater than spending.
C) production is less than spending.
D) inventories will increase above their desired level.
Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet
House is . What happens to sales revenue if the restaurant increases its price by 5
percent?
A) Sales revenue falls by less than 5 percent.
B) Sales revenue remains unchanged.
C) Sales revenue falls by 100 percent.
D) It cannot be determined without information on prices.
Figure 2-4
Figure 2-4 shows various points on three Different production possibilities frontiers for
a nation.
A movement from ________ is the result of negative technological change in plastic
production.
A) V to X
B) X to W
C) W to Z
D) Z to Y
Figure 2-5
If the economy is currently producing at point Y, what is the opportunity cost of moving
to point W?
A) 2 million tons of steel
B) zero
C) 9 million tons of paper
D) 16 million tons of paper
Yield management and price discrimination have enabled firms to increase profits and,
at the same time,
A) reduce the cost of production.
B) capture some consumer surplus.
C) reduce transactions costs.
D) transfer some producer surplus to consumers.
Which of the following groups had the highest poverty rate in 2011 in the United
States?
A) Asians
B) blacks
C) Hispanics
D) female heads of families
Figure 11-6 Figure 11-6 contains
information about the short-run cost structure of a firm.
In the figure above, which letter represents the average total cost curve?
A) A
B) B
C) C
D) D
Suppose a positive technological change in the production of disease-resistant corn
caused the price of corn to fall. Holding everything else constant, how would this affect
the market for wheat (a substitute for corn)?
A) The supply of wheat would increase and the equilibrium price of wheat would
decrease.
B) The demand for wheat would decrease and the equilibrium price of wheat would
decrease.
C) The demand for wheat would increase because consumers could afford to buy more
wheat and corn.
D) The demand for wheat would decrease and the equilibrium price of wheat would
increase.
Figure 4-4
The figure above represents the market for pecans. Assume that this is a competitive
market. If the price of pecans is $9
A) economic surplus is maximized.
B) too many consumers want to buy pecans.
C) the quantity supplied is greater than the economically efficient quantity.
D) the quantity demanded is economically efficient but the quantity supplied is
economically inefficient.
As women’s wages have risen relative to men’s wages, the opportunity cost to women
of doing housework has ________ than has the opportunity cost to men.
A) increased less
B) increased more
C) decreased more
D) decreased less