1) the business-to-business (b2b) retrieval of prices of foreign resources via the internet
best illustrates a(n):
a.trade flow.
b.capital and labor flow.
c.financial flow.
d.information flow.
2)
refer to the above data. suppose quantity supplied declined by 23 units at each price,
changing the equilibrium price in a direction and amount for you to determine. over that
price range, demand is:
a.elastic.
b.inelastic.
c.perfectly elastic.
d.perfectly inelastic.
3) As it applies to insurance, the moral hazard problem is the tendency for:
A.those most likely to collect on insurance to buy it.
B.those who buy insurance to take less precaution in avoiding the insured risk.
C.sellers to price discriminate.
D.sellers to restrict output and charge high prices.
4) A farmer who has fixed amounts of land and capital finds that total product is 24 for
the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40
when four are hired. The farmer’s product sells for $3 per unit and the wage rate is $13
per worker.
Refer to the above information. The marginal revenue product of the second worker is:
A.$24.
B.$8.
C.$15.
D.$9.
5) a price index is:
a.a comparison of the price of a market basket from a fixed point of reference.
b.a comparison of real gdp in one period relative to another.
c.the cost of a market basket of goods and services in a base period divided by the cost
of the same market basket in another period.
d. a ratio of real gdp to nominal gdp.
6) the system that measures the economy’s overall performance is formally known as:
a.national income accounting
b.business cycle measurement
c.gdp assessment
d.final output and income statistics
7) Small changes in the demand for agricultural products cause large changes in farm
prices and incomes because:
A.demand is relatively elastic with respect to price.
B.demand is relatively inelastic with respect to price.
C.agricultural supply is stable in the long run.
D.the supply of agricultural products is perfectly elastic.
8) In which of the following sets of antitrust cases did the government gain
convictions?
A.the U.S. Steel case and the Microsoft case
B.the Alcoa case and the Microsoft case
C.the DuPont cellophane case and the AT&T case
D.the U.S. Steel case and the Alcoa case
9) assuming the total population is 100 million, the civilian labor force is 50 million,
and 47 million workers are employed, the unemployment rate is:
a.3 percent.
b.6 percent.
c.7 percent.
d.53 percent.
10) If the economy is operating in the relatively steep (upper) portion of its aggregate
supply curve, a reduction in the money supply will:
A.increase the interest rate and increase employment.
B.reduce the interest rate and increase employment.
C.increase the interest rate and reduce the price level, assuming it is flexible downward.
D. reduce the interest rate and increase the price level.
11) suppose that tacos and pizza are substitutes, and that soda and pizza are
complements. we would expect an increase in the price of pizza to:
a.reduce the demand for tacos and increase the demand for sodas.
b.reduce the demand for soda and increase the demand for tacos.
c.increase the demand for both soda and tacos.
d.reduce the demand for both soda and tacos.
12)
refer to the above diagram. in the p1to p2price range, we can say:
a.that consumer purchases are relatively insensitive to price changes.
b.nothing concerning price elasticity of demand.
c.that demand is inelastic with respect to price.
d.that demand is elastic with respect to price.
13) Which of the following combinations is plausible, as it relates to a nation’s balance
of payments?
A.current account = $+40 billion; capital account = $-10 billion; financial account =
$-50 billion.
B.current account = $+50 billion; capital account = $-20 billion; financial account = $
+30 billion.
C.current account = $+10 billion; capital account = $+40 billion; financial account = $
+50 billion.
D.current account = $+30 billion; capital account = $-20 billion; financial account =
$-10 billion.
14) Productive inputs capable of replacing or renewing themselves if harvested at
moderate rates are known as:
A.renewable natural resources.
B.natural capital.
C.non-renewable natural resources.
D.fossil fuels.
15) The term V in the equation of exchange is equal to:
A.M/nominal GDP.
B.nominal GDP/M.
C.the reciprocal of the price level.
D.nominal GDP/Q.
16)
refer to the above diagram. increases in the quantity and quality of human resources and
capital are best represented by a:
a.shift in the production possibilities curve from ab to cd.
b.move from y on cd to x on ab.
c.shift in the production possibilities curve from cd to ab.
d.move from x to z along ab.
17) A $70 price tag on a sweater in a department store window is an example of money
functioning as a:
A.unit of account.
B.standard of deferred payments.
C.store of value.
D.medium of exchange.
18) suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for
products w, x, y, and z respectively. a 1 percent decrease in price will increase total
revenue in the case(s) of:
a.w and y
b.y and z
c.x and z
d.z and w
19) When the receipts given by goldsmiths to depositors were used to make purchases:
A.the gold standard was created.
B.existing banking laws were violated.
C.the receipts became in effect paper money.
D.a fractional reserve banking system was created.
20) The following table for a commercial bank or thrift:
Refer to the above table. If the legal reserve ratio falls from 25 percent to 10 percent,
excess reserves of this single bank will:
A.rise by $6,000 and the monetary multiplier will increase from 4 to 10.
B.rise by $60,000 and the monetary multiplier will increase from 4 to 10.
C.fall by $6,000 and the monetary multiplier will decline from 30 to 10.
D.fall by $2,000 and the monetary multiplier will decline from 10 to 4.