1) the expenditures and income approaches to gdp are expected to yield identical results
because goods that are not sold in one year will be sold in some following year.
2) If the real outputs per capita of a rich nation and a poor nation grow at the same
percentage rate, the absolute income gap between the two nations will shrink.
3) The top 20 percent of U.S. income earners receive nearly 80 percent of total U.S.
income.
4) The monetary multiplier and the income multiplier are two ways of referring to the
same concept.
5) Different rents on land reflect differences in the marginal revenue productivity of
land.
6) france, germany, and italy are all members of the euro zone.
7) The extended AD-AS model distinguishes between short-run and long-run aggregate
supply.
8) an income elasticity coefficient of -1.8 means the product is a normal good.
9) the most-favored-nation clause in reciprocal trade agreements means that any tariff
reductions the united states negotiates with a specific nation will automatically apply to
many other nations.
10)
refer to the above short-run data. which of the following is correct?
a.this firm will maximize its profit at 440 units of output.
b.any level of output between 100 and 440 units will yield an economic profit.
c.this firm’s marginal revenue rises with output.
d.any level of output less than 100 units or greater than 440 units is profitable.
11) If the real output of a DVC increases from $200 billion to $260 billion and its
population increases from 100 to 120 million, its real per capita output will have:
A.remained unchanged.
B.increased by about $167.
C.increased by about $55.
D.decreased by about $20.
12) real gdp per capita is found by:
a.adding real gdp and population.
b.subtracting population from real gdp.
c.dividing real gdp by population.
d.dividing population by real gdp.
13) a pure monopolist’s short-run profit-maximizing or loss-minimizing position is such
that price:
a.equals marginal revenue.
b.may be greater or less than atc
c.will always equal atc
d.always exceeds atc
14) Since 1970 the distribution of income has:
A.remained virtually constant from year to year.
B.become more equal.
C.varied considerably from year to year but in general has been stable.
D.become less equal.
15) refer to the above data. the value for z is:
a.-5
b.+5
c.-10
d.zero
16) The proposition that under some circumstances externalities can get resolved
through private negotiation is known as:
A.the paradox of externalities.
B.the median-voter theory.
C.the Coase theorem.
D.logrolling.
17) If the reserve ratio is 15 percent and commercial bankers decide to hold additional
excess reserves equal to 5 percent of any newly acquired checkable deposits, then the
relevant monetary multiplier for the banking system will be:
A.31/2.
B.4.
C.5.
D.10.
18)
Refer to the above diagram for a private closed economy. Unplanned changes in
inventories will be zero:
A.only at the $300 level of GDP.
B.only at the $200 level of GDP.
C.at all levels of GDP.
D.only at the $400 level of GDP.
19) economic resources are also called:
a.free gifts of nature.
b.consumption goods.
c.units of money capital.
d.factors of production.
20) one reason that the quantity demanded of a good increases when its price falls is
that the:
a.price decline shifts the supply curve to the left.
b.lower price shifts the demand curve to the left.
c.lower price shifts the demand curve to the right.
d.lower price increases the real incomes of buyers, enabling them to buy more.
21) total governmental purchasesfederal, state, and local combinedaccount for about
what percentage of domestic output?
a.30 percent
b.19 percent
c.10 percent
d.5 percent
22) according to the office of immigration statistics, approximately what percentage of
legal immigrants to the united states in 2007 were refugees?
a.2.2 percent
b.4.0 percent
c.12.9 percent
d.15.4 percent
23)
(consider this) refer to the above diagram. the direct economic impact of the destruction
and loss of lives caused by the terrorist attacks of september 11, 2001 is illustrated by
the:
a.shift of the production possibilities curve from cd to ab.
b.shift of the production possibilities curve from ab to cd.
c.move from x to y on production possibilities curve ab.
d.move from y to x on production possibilities curve ab.
24) the tax rates embodied in the federal personal income tax are such that:
a.a rising absolute amount, but a declining proportion, of income is paid in taxes.
b.the marginal and average tax rates are equal, making the tax progressive.
c.the average tax rate rises more rapidly than does the marginal tax rate.
d.the marginal tax rate is higher than the average tax rate, causing the average tax rate
to rise.
25) slopes of lines are especially important in economics because:
a.they measure marginal changes.
b.they always tell us something about profits.
c.positive slopes are always preferred to negative slopes.
d.they always relate to resource and output scarcity.
26) What can IACs do to foster DVCs economic growth?
27) What is the meaning of the incidence of a tax? Give an example using a landlord
and tenants.
28) In 2007 the public debt was $9.0 trillion. Put this number in perspective by relating
the debt to GDP, to other countries debt, to the amount of interest payments on the debt,
and to ownership of the debt.
29) Why would a low-wage nation oppose emigration? Why would a high-wage nation
oppose immigration?
30) What is stagflation and what was one of its causes in the 1970s and early 1980s?