An example of a transfer payment is
A) a teacher’s paycheck.
B) a paycheck for a member of the National Guard.
C) a welfare payment.
D) a purchase of a new bridge in Alaska.
Suppose electronic cigarette manufacturer NJOY is successful in establishing a
profitable market for e-cigarettes in what is a monopolistically competitive industry. In
the long run, NJOY will most likely find it ________ to remain profitable as they face
________ competition in the e-cigarette market.
A) harder; more
B) harder; less
C) easier; more
D) easier; less
If a monopolistically competitive firm lowers its price and, as a result, its total revenue
decreases then
A) the output effect of the price change was less than the price effect.
B) the output effect of the price change was greater than the price effect.
C) the firm’s demand curve must have decreased.
D) the substitution effect of the price change was greater than the income effect.
If you invest $10,000 in a bond that earns 8% interest per year, how many years will it
take to double your money?
A) 1 year and 3 months
B) 2 years and 6 months
C) 8 years
D) 8 years and 9 months
Table 12-2
Table 12-2 lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume
that Margie operates in a perfectly competitive market.
What is Margie’s total revenue if she sells 250 pounds of apples?
A) $250
B) $500
C) $750
D) There is not enough information in the table to determine Margie’s total revenue.
Employees at the university have negotiated a 5 percent increase in wages for the next
year, based on their inflation expectations. If inflation is actually 6 percent over the next
year, which of the following will occur?
A) Unemployment of university employees will rise.
B) Real wages for university employees will fall.
C) Inflation will be 5 percent the following year.
D) The increase in inflation is expected.
Figure 9-3 Since 1953 the
United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates
the impact of the quota. If there was no quota, how many pounds of peanuts would be
imported?
A) 16 million
B) 24 million
C) 30 million
D) 40 million
Figure 15-12 Figure 15-12 shows
the cost and demand curves for a monopolist.
What is the amount of consumer surplus if, instead of monopoly, the industry was
organized as a perfectly competitive industry?
A) $21
B) $124
C) $186
D) $332
Figure 3-5
At a price of $5, the quantity sold
A) is 2 units.
B) is 4 units.
C) is 6 units.
D) cannot be determined.
One difference between stocks and bonds is that
A) stocks are financial securities, while bonds are labor market securities.
B) stocks are usually issued in electronic form, while bonds are usually issued in paper
form.
C) stocks represent ownership in companies, while bonds represent ownership in banks.
D) stocks do not involve a promise to repay a purchaser of the stock, while bonds
represent a promise to repay the purchase price of the bond.
Figure 11-13
The lines shown in the diagram are isocost lines. If the price of labor is $50 per unit,
then along the isocost AF, the total cost
A) is $500.
B) is $750.
C) is $1,250.
D) cannot be determined without the price of capital.
Table 26-3
In a competitive market equilibrium the ________ equals the ________ of the last unit
sold.
A) total profit; marginal benefit
B) total cost; marginal cost
C) profit; selling price
D) marginal benefit; marginal cost
Suppose a transaction changes a bank’s balance sheet as indicated in the following
T-account, and the required reserve ratio is 10 percent.
As a result of the transaction, the bank can make a maximum loan of
A) $0.
B) $200.
C) $1,800.
D) $2,000.
What is one difference between stocks and bonds?
A) Bonds earn a higher rate of return than stocks.
B) Stocks earn a higher rate of return than bonds.
C) Bonds are purchased at a bank, while stocks are purchased through the federal
government.
D) Stocks represent partial ownership in a firm, while bonds do not.
Which of the following is true of trademarks?
A) A successful trademark is one that becomes a generic name for a product, for
example, “Xerox” has become a generic term for making photocopies.
B) A successful trademark is one that allows consumers to immediately identify the
source or producer of the product.
C) If a firm is granted a trademark, then no other firms can legally produce similar
products for a given period of time.
D) If a firm is granted a trademark, then no other firms can legally sell in the same
geographic area for a given period of time.
Figure 12-9 Figure 12-9 shows cost and
demand curves facing a profit-maximizing, perfectly competitive firm.
Identify the short-run shut down point for the firm.
A) a
B)
C) c
D) d