Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher.
B) If the price of iPhones falls, a larger quantity of iPhones will be purchased.
C) The government should revamp the health care system.
D) The U.S. government should not have bailed out U.S. auto manufacturers.
An example of a final good would be
A) the soy milk sold to Starbucks.
B) the whipped cream sold to Starbucks.
C) a soy latte sold by Starbucks to a student.
D) the coffee beans sold to Starbucks.
) Table 20-19
Looking at the table above, what is the rate of growth of the average price level from
2012 to 2013?
A) 1%
B) 2%
C) 3.5%
D) 4.76%
E) 5.25%
Figure 2-13
One segment of the circular flow diagram in the figure shows the flow of funds from
economic agents E to market F. Who are economic agents E and what is market F?
A) E = households; F = product markets
B) E = firms; F = product markets
C) E = households ; F = factor markets
D) E = firms; F = factor markets
Which of the following financial securities is most liquid?
A) a savings account
B) a share of stock
C) a cashier’s check
D) a $20 bill
One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people.
B) because of advances in medical technology, people are living longer. These medical
advances are costly and drive up the price of insurance for everyone.
C) the average age of citizens of the United States has increased in recent years, and
will continue to increase over the next 20 to 30 years. As older citizens retire, more and
more of their medical bills will have to be paid by younger workers.
D) fewer men and women are choosing medical careers because of the increase in the
cost of malpractice insurance.
Which of the following is a positive economic statement?
A) People should not buy SUVs.
B) The government should mandate electric automobiles.
C) Scarcity necessitates that people make trade-offs.
D) Foreign workers should not be allowed to work for lower wages than the citizens of
a country.
Most people would prefer to drive a luxury car that has all the options, but more people
buy less expensive cars even though they could afford the luxury car because
A) car buyers are irrational.
B) the total utility of less expensive cars is greater than that of luxury cars.
C) the marginal utility per dollar spent on the less expensive car is higher than that
spent on luxury cars.
D) luxury cars cost a lot more than non-luxury cars.
As the value of the Gini coefficient approaches one,
A) income distribution becomes less unequal.
B) income distribution becomes more unequal.
C) the percentage of the population under the poverty line increases.
D) the percentage of the population under the poverty line decreases.
Figure 9-2 Suppose the U.S.
government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the
impact of this tariff. With the tariff in place, the United States produces
A) 9 million pounds of rice.
B) 15 million pounds of rice.
C) 31 million pounds of rice.
D) 42 million pounds of rice.
Figure 5-7 What is the
incremental cost of increasing the quantity of pollution reduction from QBto QE units?
A) PE
B) the value of the area QBBEQE
C) PEQE
D) the value of the area BEF
The easiest way for a country to obtain access to technology is through
A) subsidizing education and training.
B) promoting foreign direct investment.
C) promoting policies to enhance saving.
D) enacting policies to promote property rights.
Consider two oligopolistic industries selling the same product in different locations. In
the first industry, firms always match price changes by any other firm in the industry. In
the second industry, firms always ignore price changes by any other firm. Which of the
following statements is true about these two industries, holding everything else
constant?
A) Market prices are likely to be higher in the first industry in which firms always
match price changes by rival firms than in the second where firms ignore their rivals’
price changes.
B) Market prices are likely to be lower in the first industry where firms always match
price changes by rival firms than in the second where firms ignore their rivals’ price
changes.
C) Market prices are likely to be the same in both markets because they are both
oligopolistic markets.
D) No conclusions can be drawn about the pricing behavior under these very different
firm behaviors.
If disposable income falls by $50 billion and consumption falls by $40 billion, then the
slope of the consumption function is
A) 1.20.
B) 0.80.
C) 0.70.
D) 0.10.
Figure 16-5
Suppose the firm represented in the diagram decides to use a two-part pricing strategy
such that it charges a fixed fee and a per-unit price equal to the competitive price. (This
is also called an optimal two-part tariff.) What is the value of the consumer surplus
from this pricing strategy?
A) $2,560
B) $5,760
C) $7,870
D) 0
The purchase or building by a corporation of a facility in a foreign country is called
A) foreign direct investment.
B) foreign portfolio investment.
C) foreign capital depreciation.
D) globally-directed investment.
Which of the following is operating income?
A) explicit plus implicit costs
B) stockholders’ equity
C) revenue minus operating expenses
D) net profit