Which of the following is an example of human capital?
A) a computer
B) a factory building
C) a college education
D) a software program
Figure 6-12
Suppose the diagram shows the supply curves for a product in the short run and in the
long run. Which supply curve represents supply in the short run and which curve
represents supply in the long run?
A) SB represents supply in the short run and SA represents supply in the long run.
B) Either SA or SB could represent supply in the short run; in the long run the supply
curve must be a vertical line.
C) Either SA or SB could represent supply in the long run; in the short run the supply
curve must be a horizontal line.
D) SA represents supply in the short run and SB represents supply in the long run.
Table 9-19
Looking at the table above, what is the approximate rate of growth of real average
hourly earnings from 2011 to 2012?
A) 15%
B) 4.4%
C) -1.5%
D) -4.8%
Which of the following would cause an increase in the supply of cheese?
A) a decrease in the price of wine (assuming that cheese and wine are complements)
B) an increase in the price of cheese
C) an increase the price of a product that producers sell instead of cheese
D) an increase in the number of firms that produce cheese
Figure 2-19
Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires
“The Paint Pros,” a professional painting company, to paint her home.
A) J and M
B) K and G
C) K and M
D) J and G
Figure 28-1
Suppose that the economy is currently at point A, and the unemployment rate at A is the
natural rate. What policy would the Federal Reserve pursue if it wanted the economy to
move to point C in the long run?
A) Buy treasury bills.
B) Sell treasury bills.
C) Lower the discount rate.
D) Increase the money supply.
E) No policy will move the economy to point C in the long run.
The price elasticity of the supply of teenage labor services is approximately 1.36.
Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint
formula, calculate the approximately change in the quantity supplied of teenage labor.
A) 7.3 percent
B) 14.4 percent
C) 25.5 percent
D) There is insufficient information to answer the question.
Which of the following statements is true?
A) The average product of labor is at its maximum when the average product of labor
equals the marginal product of labor.
B) The average product of labor is at its minimum when the average product of labor
equals the marginal product of labor.
C) The average product of labor tells us how much output changes as the quantity of
workers hired changes.
D) Whenever the marginal product of labor is greater than the average product of labor
the average product of labor must be decreasing.
For productive efficiency to hold
A) price must equal the marginal cost of the last unit produced.
B) price must equal marginal revenue of the last unit sold.
C) average variable cost is minimized in production.
D) average total cost is minimized in production.
The CPI in 1990 was 131, and the CPI in 2010 was 218. If you earned a salary of
$40,000 in 1990, what would be a salary with equivalent purchasing power in 2010?
A) $45,977
B) $66,565
C) $87,200
D) $143,486
The cost borne by a producer in the production of a good or service is called
A) private cost.
B) public cost.
C) social cost.
D) internal cost.
In the United States in 2012, the percentage of people with some form of health
insurance was about
A) 17%.
B) 29%.
C) 54%.
D) 84%.
What is the difference between price discrimination and other forms of discrimination?
Define allocative efficiency. Explain the significance of this concept in economics?
Why does the holding of excess reserves by banks and the holding of currency by
households and firms cause the real-world deposit multiplier to be less than the simple
deposit multiplier?
What does it mean for a country to have a comparative advantage in producing a
product?
How can changes over time of the average height of the people in a country help to
indicate the standard of living in a country?
If American demand for purchases of British goods has decreased, how would you
expect the equilibrium exchange rate in the market for dollars to respond? Support your
answer graphically.
Why are individual buyers and sellers in perfect competition called price takers?
Define logrolling. Explain why logrolling often results in legislation that benefits the
economic interests of a few, while harming the interests of a larger group of people.