Archives: Quiz
Chapter 18 Refer Scenario 263 This Economys Government Running
Saving, Investment, and the Financial System 6399 63. A budget surplus a. occurs when the government has debt equal to zero. b. causes government debt to increase. c. exists when government spending is greater than tax revenues. d. reduces the […]
Chapter 18 Many economists believe the bias in the CPI is now only
Saving, Investment, and the Financial System 6379 22. Which of the following equations represents GDP for an open economy? a. Y = C + I + G + NX b. NX = I – G c. I = Y – […]
Chapter 18 There is no longer much debate among economists concerning
Saving, Investment, and the Financial System 6359 161. Index funds a. buy all the stocks in a given stock index. b. promise to beat the market by a certain percentage known as an index. c. provide a return that is […]
Chapter 18 The Bureau of Labor Statistics does not try to account
Saving, Investment, and the Financial System 6339 121. Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a […]
Chapter 18 If the quality of a good deteriorates from one year to the next
Saving, Investment, and the Financial System 6319 80. Nastech Pharmaceuticals announced it has developed a nasal spray that would reduce hunger cravings. Other things the same we would expect a. the demand for existing shares of stock in this company […]
Chapter 18 When a new good is introduced, consumers have more variety from which to choose
Saving, Investment, and the Financial System 6299 37. Two bonds have the same term to maturity. The first was issued by a state government and the probability of default is believed to be low. The other was issued by a […]
Chapter 18 Substitution bias causes the CPI to understate the increase
Saving, Investment, and the Financial System Multiple Choice – Section 00: Introduction 1. When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures a. capital investment. b. investment in human capital. […]
Chapter 17 Substitution bias occurs because the CPI ignores the possibility
Production and Growth 6265 15. Why do we refer to physical capital as a produced factor of production? ANSWER: Physical capital originates as an output from the production process, and is subsequently used as an input into the production process. […]
Chapter 17 The goal of the consumer price index is to gauge how much incomes must
Production and Growth 6251 49. Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies. a. True b. False ANSWER: False DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.123 – LO: 25-3 NATIONAL STANDARDS: United States – […]
Chapter 17 The producer price index measures the cost of a basket
Production and Growth 6211 104. If a newly elected government takes actions that makes its country’s courts more efficient and less corrupt, then a. producers will have greater confidence that they will benefit from their efforts. b. producers are likely […]
Chapter 17 South Koreas Gdp than Its Gnpd Foreign Portfolio
Production and Growth 6191 57. The catch-up effect refers to the idea that a. saving will always catch-up with investment spending. b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor. […]
Chapter 17 If the value of the consumer price index is 110 in 2005 and 121 in 2006
Production and Growth 6171 11. The traditional view of the production process is that capital is subject to a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high […]
Chapter 17 The inflation rate for 2007 is computed by
Production and Growth 6151 121. Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy’s discovery is a. physical capital. If Amy’s discovery leads to lower natural gas prices, it has […]
Chapter 17 Country Had Population 800 Whom 560 Worked
Production and Growth 6111 24. In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity? a. 1/3 laptop per hour b. 3 hours per laptop c. 1200 laptops d. 400 laptops ANSWER: […]
Chapter 17 Population Growth And Real Gdp
Production and Growth 6091 34. The United Kingdom is a. an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. b. an advanced economy, and over the past […]
Chapter 16 By keeping the basket of goods and services the
232 Measuring the Cost of Living 16. Refer to Scenario 24-6. Using 2011 as the base year, what is the inflation rate in 2011? ANSWER: The inflation rate is 20%. POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.118 – LO: 24-1 […]
Chapter 16 Joyce Meet George The Banker Work Out
Measuring the Cost of Living 221 71. In the late 1970s, U.S. nominal interest rates were high and real interest rates were low, but in the late 1990s, U.S. nominal interest rates were low and real interest rates were high. […]
Chapter 16 The content of the basket of goods and services
Measuring the Cost of Living 201 11. The Bureau of Labor Statistics determines which prices are most important to the typical consumer by surveying consumers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.118 – LO: […]
Chapter 16 Rosa Has Accumulated 20 Interest She Withdraws
Measuring the Cost of Living 181 105. If the nominal interest rate is 4 percent and the real interest rate is 7 percent, then the inflation rate is a. -3 percent. b. 0.75 percent. c. 3 percent. d. 11 percent. […]
Chapter 16 The Newspaper Editorial Incorrect Under All
Measuring the Cost of Living 161 63. Refer to Table 24–13. Suppose Olivia’s 2009 clothing expenditure in 2010 dollars amounts to $1,440. Then X, the consumer price index for 2009, has a value of a. 120. b. 130. c. 140. […]
Chapter 16 Which The Following Equations Valid For The
Measuring the Cost of Living 121 10. Which of the following statements is true? a. Even if we know the values of the consumer price index for the years 2009 and 2010, we cannot calculate the inflation rate for 2010 […]
Chapter 16 Which The Following Statements Correct The
Measuring the Cost of Living 101 200. An important difference between the GDP deflator and the consumer price index is that a. the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index […]
Chapter 16 we can conclude that a. the best baseball players today
Measuring the Cost of Living 81 158. The consumer price index tries to gauge how much incomes must rise to maintain a. an increasing standard of living. b. a constant standard of living. c. a decreasing standard of living. d. […]
Chapter 16 however, prices have also risen since 1931
Measuring the Cost of Living 61 116. Refer to Table 24-6. If the base year is 2009, then the economy’s inflation rate in 2010 is a. 20 percent. b. 25 percent. c. 30 percent. d. 120 percent. ANSWER: a POINTS: […]
Chapter 15 Income generated by a nation’s domestic production
5810 Measuring a Nation’s Income 82. You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully. ANSWER: Real income is nominal income adjusted for general […]
Chapter 15 Which of the following statistics is usually regarded as the best single
Measuring a Nation’s Income 5791 27. The government computes measures of income other than GDP because these other measures usually tell different stories about overall economic conditions. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.112 […]
Chapter 15 Measuring Nations Income Gdp Does Not Reflect
Measuring a Nation’s Income 5771 5. GDP does not reflect a. the value of leisure. b. the value of goods and services produced at home. c. the quality of the environment. d. All of the above are correct. ANSWER: d […]
Chapter 15 Refer Table 237 Which The Following
Measuring a Nation’s Income 5751 57. Refer to Table 23-5. In 2017, this country’s a. real GDP was $900, and the GDP deflator was 138.9. b. real GDP was $1250, and the GDP deflator was 128.0. c. real GDP was […]
Chapter 15 The basic tools of supply and demand are
Measuring a Nation’s Income 5731 14. Which of the following statements about nominal GDP and real GDP is correct? a. Nominal GDP is a better gauge of economic well-being than real GDP. b. Real GDP is a better gauge of […]
Chapter 15 Why do production and employment expand in some years and contract
Measuring a Nation’s Income 5711 88. In the economy of Talikastan in 2015, consumption was $3000, exports were $400, GDP was $5000, imports were $500, and investment was $1400. What were Talikastan’s government purchases in 2015? a. $60 b. $500 […]
Chapter 15 Us Imports But Not Us Consumption Neither
Measuring a Nation’s Income 5691 46. Which of the following items is counted as part of government purchases? a. The federal government pays the salary of a Navy officer. b. The state of Nevada pays a private firm to repair […]
Chapter 15 Why is average income high in some countries while it is low in others?
Measuring a Nation’s Income 5671 6. Consumption consists of spending by households on goods and services, with the exception of a. purchases of intangible services. b. purchases of durable goods. c. purchases of new houses. d. spending on education. ANSWER: […]
Chapter 15 What is the impact of foreign competition on the U.S. auto
Measuring a Nation’s Income 5651 84. The government of a country, which has adopted American GDP accounting conventions, reported that seasonally adjusted GDP in quarter 3 was $48 billion at an annual rate. This means that the seasonally-adjusted market value […]
Chapter 15 Which of the following is not a question addressed by macroeconomists?
Measuring a Nation’s Income 5611 3. Which of the following is a way to compute GDP? a. total income earned. b. total expenditures on final goods. c. add up the market values of all final goods and services. d. All […]
Chapter 15 how consumers maximize utility, and how prices are established
Measuring a Nation’s Income Multiple Choice – Section 00: Introduction 1. Macroeconomists study a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions. ANSWER: c […]
Chapter 14 Vincents Customers Are Always Available For The
3932 Monopoly 31. Refer to Table 15-22. The marginal revenue becomes negative with the production of which unit of output? ANSWER: 70th POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.71 – LO: 15-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic […]
Chapter 14 She can purchase a factory that costs $400,000
Monopoly 3921 78. In many countries, the government chooses to “internalize” the monopoly by owning monopoly providers of goods and services. (In some cases these firms are “nationalized,” and the government actually buys or confiscates firms that operate in monopoly […]
Chapter 14 the relationship between accounting profit and economic
Monopoly 3901 23. A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.72 […]
Chapter 14 Suppose that for a particular business there are no implicit costs
Monopoly 3881 23. One problem with government operation of monopolies is that a. a benevolent government is likely to be interested in generating profits for political gain. b. monopolies typically have rising average costs. c. the government typically has little […]
Chapter 14 Which of the following expressions is correct?
Monopoly 3861 81. If a monopolist can practice perfect price discrimination, the monopolist will a. eliminate consumer surplus. b. eliminate deadweight loss. c. maximize profits. d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING […]
Chapter 14 When Local Grocery Store Offers Discount Coupons
Monopoly 3821 57. Refer to Scenario 15-4. The profit–maximizing monopolist will earn profits of a. $6,400. b. $3,200. c. $1,600. d. $800. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Challenging LEARNING OBJECTIVES: ECON.MANK.15.73 – LO: 15-3 NATIONAL STANDARDS: United States – […]
Chapter 14 She left the firm to open her own law practice
Monopoly 3801 23. A monopoly market a. always maximizes total economic well–being. b. always minimizes consumer surplus. c. generally fails to maximize total economic well-being. d. generally fails to maximize producer surplus. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING […]
Chapter 14 Jane was a partner at a law firm earning $223,000 per year
Monopoly 3781 188. A reduction in a monopolist‘s fixed costs would a. decrease the profit–maximizing price and increase the profit-maximizing quantity produced. b. increase the profit-maximizing price and decrease the profit-maximizing quantity produced. c. not effect the profit-maximizing price or […]
Chapter 14 Total revenue minus only explicit costs is called
Monopoly 3741 Table 15-4 A monopolist faces the following demand curve: Price Quantity $30 0 $25 2.5 $20 5 $15 7.5 $10 10 $5 12.5 $0 15 110. Refer to Table 15-4. If the monopolist produces 10 units, what is […]
Chapter 14 Refer Figure 156 What Price Will The
Monopoly 3721 74. Refer to Figure 15-4. The demand curve for a monopoly firm is depicted by curve a. A. b. B. c. C. d. D. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.72 – LO: 15-2 NATIONAL […]
Chapter 13 Walter asked Tyler the accountant and Greg the economist
Firms in Competitive Markets 3627 64. If some resources used in the production of a good are only available in limited quantities, then the long run market supply curve will be perfectly elastic. a. True b. False ANSWER: False POINTS: […]
Chapter 13 Last year Walter paid $25,000 for supplies and had revenue of $60,000
Firms in Competitive Markets 3611 16. A firm‘s incentive to compare marginal revenue and marginal cost is an application of the principle that rational people think at the margin. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Difficulty: Easy […]
Chapter 13 To invest in his painting business, he withdrew $20,000 from
Firms in Competitive Markets 3591 89. In the transition from the short run to the long run, the number of firms in a competitive industry is a. fixed. b. increasing at a constant rate. c. decreasing. d. able to adjust […]
Chapter 13 Tyler says his costs are $25,900, and Greg says his costs
Firms in Competitive Markets 3571 50. Which of the following statements is not correct? a. In a long–run equilibrium, marginal firms make zero economic profit. b. To maximize profit, firms should produce at a level of output where price equals […]
Chapter 13 Walter used to work as a high school teacher for $40,000 per year but quit
Firms in Competitive Markets 3551 13. Refer to Figure 14–11. The figure above is for a firm operating in a competitive industry. If there were eight identical firms in the industry, which of the following price-quantity combinations would be on […]