When a firm has been granted a trademark, which grants legal protection against other
firms using the name of the product that has been granted the trademark, the firm
A) still faces the possibility that the name will become widely used and no longer
associated with a specific company.
B) does not have to worry about legally enforcing the trademark; this is the
responsibility of the legal system.
C) still must apply for a copyright and a patent to ensure that no other firm will use the
product’s name.
D) must spend an annual amount on advertising the product each year; the amount it
must spend is negotiated by the firm and the government agency that grants the
trademark.
Over longer periods of time, increases in oil prices provide firms with incentives to
explore and recover oil. What does this indicate about the long-run price elasticity of
supply for oil?
A) The elasticity coefficient is likely to be higher in the long run than in the short run.
B) The elasticity coefficient is likely to be lower in the long run than in the short run.
C) The elasticity coefficient approaches 0 in the long run as supplies are depleted.
D) The elasticity coefficient is unstable in the long run because oil supplies may be
depleted.
What characteristic of a competitive market has made the “long run pretty short” in the
market for iPhone applications?
A) few firms in the market
B) identical products
C) ease of entry
D) blocked entry
An oligopoly between two firms is called
A) a biopoly.
B) an oligopoly; there are no special terms used for oligopolies with different numbers
of firms.
C) a dual-firm oligopoly.
D) a duopoly.
A decrease in aggregate expenditure has what result on equilibrium GDP?
A) Equilibrium GDP rises.
B) Equilibrium GDP is not affected by a decrease in aggregate expenditure.
C) Equilibrium GDP falls.
D) Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate
expenditure relative to the initial level of GDP.
In September 2012, the average price of gasoline in the United States was $3.91 per
gallon, and consumers purchased nearly 5 percent less gasoline than they had during
September 2011, when the average price of gasoline was $3.66 per gallon. Based on
these figures, from September 2011 to September 2012, the demand for gasoline was
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
Someone who is available for work but has not actively looked for work in the previous
four weeks would be classified as
A) employed.
B) unemployed.
C) not in the labor force.
D) not in the working-age population.
An HMO hires radiology services from India to cut costs. If all else remains equal, this
will
A) decrease net exports.
B) decrease the balance of trade.
C) increase the current account balance.
D) decrease the financial account.
Consider the following statements about the signaling hypothesis of education:
a. The signaling hypothesis of education is based on the idea that college graduates are
more productive than non-college graduates.
b. The signaling hypothesis of education suggests that firms rely on human capital
requirements to ensure worker quality.
c. Employers rely on certain signals, such as a college diploma, to gauge a potential
employee’s abilities because it could lower the cost of acquiring information about the
person that is not easily observed. Which of the statements above is true about the
signaling hypothesis of education?
A) a, b, and c
B) a and b only
C) b and c only
D) a and c only
If a corporation goes bankrupt, which of the following has first claim on the firm’s
assets?
A) stockholders
B) the state where chartered
C) employees
D) bondholders
Which of the following explains the cause of the change in the unemployment rate at
the end of a recession?
A) Firms are hesitant to rehire laid off workers, as they continue to operate below
capacity.
B) Firms rapidly hire new workers at the first sign of an increase in demand for their
goods.
C) Discouraged workers return to the labor force, and this makes the unemployment
rate fall.
D) Discouraged workers leave the labor force, and this makes the unemployment rate
rise.