Archives: Quiz

Article Summary. A growing number of U.S. citizens are going to other countries for elective surgery procedures. Improved quality and significant cost savings abroad have attracted an increasing number of what are being referred to as American medical tourists, especially […]

Of the following high-income countries, which has the highest infant mortality rate? A) Canada B) Japan C) the United Kingdom D) the United States If a firm has an incentive to increase supply now and decrease supply in the future, […]

Of the following countries, which had the highest level of GDP per capita in 2012? A) Japan B) France C) Italy D) the United States According to the short-run Phillips curve, which of the following would result in high rates […]

Which of the following would shift the supply curve for smartphones to the right? A) an increase in the price of a substitute in production B) an increase in consumer income (assuming that all smartphones are normal goods) C) a […]

As a result of the tariff on Chinese tires, U.S. consumers are estimated to have spent ________ on imported tires and ________ on U.S.-produced tires. A) more; more B) more; less C) less; more D) less; less When Mr. Peabody […]

Figure 7-1 Figure 7-1 shows the U.S. demand and supply for leather footwear. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports? A) Q0 B) Q1 C) Q2 D) Q2 […]

On an isoquant/isocost graph, the least cost input combination of producing a given output is A) any point on the isoquant curve. B) any point on the isocost curve. C) given by the tangency between the isoquant curve and the […]

The poverty rate is defined as the percentage of the A) labor force that is poor according to the federal government’s definition of poverty. B) population that is exempt from paying federal income taxes. C) population who qualify to receive […]

In a closed economy, which of the following components of GDP is not included? A) investment B) government spending C) net exports D) consumption Suppose a decrease in the supply of paper results in an increase in revenue. This indicates […]

An advantage of Microsoft windows is its compatibility with the widest range of hardware and software. The dominance of Windows is self-reinforcing: hardware and software manufacturers ensure that their products are compatible with Windows in order to have access to […]

During what period of time did the United States most consistently adhere to the gold standard? A) from the nineteenth century until the 1930s B) from the eighteenth century until the nineteenth century C) from 1914 until 1929 D) from […]

The production function shows A) the total cost of producing a given quantity of output. B) the maximum output that can be produced from each possible quantity of inputs. C) the technology used to produce output. D) the incremental output […]

Consider the following items: a. the album “21” by Adele b. a Dutch horticulturalist’s new method for cultivating hybrid tulips c. Rolls Royce’s “Spirit of Ecstasy” hood ornament design d. the sale of Tumi luggage at a Macy’s department store […]

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. […]

Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium? A) Marginal revenue is equal to marginal cost. B) Price is equal to average revenue. C) The firm has excess capacity. D) Price is […]

Figure 5-9 Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and lakes and causes substantial environmental damage. Figure 5-9 illustrates the situation in the toilet paper market. The efficient output is […]

When Disneyland opened in 1955, what prices were charged for admission and rides? A) Admission was free; customers paid for rides. B) All customers paid the same price for admission; rides were free. C) Admission prices varied by your age, […]

Tax cuts on business income increase aggregate demand by increasing A) business investment spending. B) consumption spending. C) government spending. D) wage rates. Table 7-3 Mateo and Celeste produce custom saddles and spurs. Table 7-3 lists the number of saddles […]

Tax incidence is the actual division of the A) burden of the tax between buyers and sellers in a market. B) tax revenues between government agencies. C) tax revenues between the federal government and state governments. D) population into different […]

Consider a used car market in which half the cars are good and half are bad (lemons). A rational buyer in this market should A) offer to pay a price equal to the most she would pay for a good […]

Figure 12-15 Assume that the medical screening industry is perfectly competitive and that some firms are making short-run losses. Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people that yearly CT scans […]

If real GDP per capita in Ireland is estimated to be $7,400 in 2014, what will real GDP per capita be in 2019 if real GDP per capita grows at an annual rate of 2.8%? A) $7,607 B) $8,496 C) […]

Most employees ________ pay taxes on the value of health insurance provided by employers, and most people ________ get a tax break when buying individual health insurance policies. A) do; do B) do; do not C) do not; do D) […]

If people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a A) commodity crisis. B) […]

Cassie’s Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would […]

Figure 4-3 Figure 4-3 shows Kendra’s demand curve for ice-cream cones. If the market price is $3.00, what is Kendra’s consumer surplus? A) $6.50 B) $5.50 C) $2.50 D) $0.50 Sefronia and Bella share an apartment and they are deciding […]

The area ________ the market supply curve and ________ the market price is equal to the total amount of producer surplus in a market. A) above; above B) above; below C) below; above D) below; below Health Clubs typically experience […]

Table 2-15 Table 2-15 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. What is George’s opportunity cost of mowing a lawn? A) half a garden […]

Figure 6-10 A unit-elastic supply curve is shown in A) Panel A. B) Panel B. C) Panel C. D) Panel D. Figure 1-1 Answer: C Using the information in the figure above, calculate the percentage change in sales of alcoholic […]

The marginal revenue of a monopolistically competitive firm A) cannot be negative because the price the firm charges will always be greater than zero. B) can be negative if the firm charges a high price. C) can be negative if […]

Table 4-13 The equations above describe the demand and supply for Aunt Maud’s Premium Hand Lotion. What are the equilibrium price and quantity (in thousands) for Aunt Maud’s Lotion? A) $20 and 30 thousand B) $30 and 20 thousand C) […]

Jonah lives in a small town where there is only one Mexican restaurant. Which of the following is likely to be true about the price elasticity of demand for meals at the Mexican restaurant? A) Demand is likely to be […]

What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters’) welfare? A) the voting paradox […]

As output increases A) average variable cost becomes smaller and smaller. B) the difference between average total cost and average variable cost decreases. C) marginal cost increases continuously. D) the difference between average total cost and average variable cost becomes […]

Scenario 1-1 Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week. A manager at the plant observes, “Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 […]

Which of the following is “crowded out” by higher interest rates that can be the result of expansionary fiscal policy? A) consumption B) private investment C) net exports D) All of the above are crowded out by higher interest rates. […]

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon. Sellers of […]

Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia? A) Quantity demanded will decrease, quantity supplied will […]

Figure 3-3 The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses. Which graph most likely represents which market? A) Graph B represents the market […]

What is Different about buying stocks and buying bonds? A) A stock can possibly pay dividends forever, but bonds have a fixed number of payments. B) Differences of opinion about a stock’s future may vary considerably but there is less […]

Changes in the federal funds rate usually result in A) changes in both short-term and long-term interest rates with more of an effect on short-term interest rates. B) changes in both short-term and long-term interest rates with more of an […]

Tabitha shares a flea market booth with her sister. Her share of the rent is $150 per month. She is considering moving to her own, larger booth which she will not have to share with anyone. The larger booth rents […]

Assume that the demand curve for DVD players shifts to the left and the supply curve for DVD players shifts to the right, but the supply curve shifts more than the demand curve. As a result A) both the equilibrium […]

________ means the supply curve has shifted to the right, while ________ refers to a movement along a given supply curve in response to an increase in price. A) An increase in supply; a decrease in supply B) A decrease […]

Which of the following explains why two firms, Apex and Bongo, would engage in implicit collusion, rather than explicit collusion? A) Implicit collusion allows Apex to increase its profits at the expense of Bongo without Bongo knowing that collusion has […]

Figure 7-2 Figure 7-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations. The efficient equilibrium price is A) $60. B) […]

Mrs. Lovejoy decides to invest in companies which she believes can produce its goods at the lowest possible cost. Mrs. Lovejoy is investing in companies that are A) productively efficient. B) allocatively efficient. C) both productively and allocatively efficient. D) […]

Table 2-8 Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea. What is China’s opportunity cost of producing one digital camera? A) 0.04 pounds of […]

Gross domestic product understates the total production of final goods and services because of the omission of A) exports. B) inflation. C) intermediate goods. D) household production. Figure 17-6 Figure 17-6 shows two different compensation schemes for the Safelite Glass […]

Employees at the university have negotiated a 5 percent increase in wages for the next year, based on their inflation expectations. If inflation is actually 4 percent over the next year, which of the following will occur? A) Unemployment of […]