Archives: Quiz
Chapter 2 A circular-flow diagram is a model that
Thinking Like an Economist 383 2. Which of the following is not an example of a graph of a single variable? a. a pie chart b. a bar graph c. a time-series graph d. a scatterplot ANSWER: d POINTS: 1 […]
Chapter 2 Which of these statements about economic models is correct?
Thinking Like an Economist 343 10. Normative statements are not a. descriptive. b. prescriptive. c. claims about how the world should be. d. made by economists speaking as policy advisers. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.7 […]
Chapter 2 Which of the following statements is correct?
Thinking Like an Economist 303 194. Refer to Figure 2-7. If this economy devotes all of its resources to the production of engines, then it will produce a. 0 engines and 40 tvs. b. 10 engines and 35 tvs. c. […]
Chapter 2 incorporate simplifying assumptions that often contradict reality
Thinking Like an Economist 283 158. A production possibilities frontier shifts outward when a. the economy experiences economic growth. b. the desires of the economy’s citizens change. c. at least one of the basic principles of economics is violated. d. […]
Chapter 2 In constructing models, economists
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 118. Refer to Figure 2-2. If households are buyers in the markets represented by […]
Chapter 2 Which types of models are built with assumptions?
Thinking Like an Economist 243 79. In the circular-flow diagram, another name for goods and services produced by firms is a. factors of production. b. output. c. inputs. d. resources. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 […]
Chapter 2 The primary determinant of a country’s standard of living
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38. An example of a price that changes only infrequently is the price of […]
Chapter 2 amount of labor that can be saved by replacing workers
Thinking Like an Economist Multiple Choice – Section 00: Introduction 1. Which of the following is not correct? a. Economists use some familiar words in specialized ways. b. Economics has its own language and its own way of thinking, but […]
Chapter 1 This is an example of a market failure caused by an
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25. A worker in Vietnam can earn $6 per day making cotton cloth on […]
Chapter 1 Government policies are the primary forces that guide
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47. According to Adam Smith, the success of decentralized market economies is primarily due […]
Chapter 1 All The Above Are Correct answer
Ten Principles of Economics 81 6. Trade between the United States and Guatemala a. benefits both the United States and Guatemala. b. is a losing proposition for the United States because Guatemalan labor is less expensive than U.S. labor. c. […]
Chapter 1 A loaf of bread costs Betty $2.00 to produce
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 99. It costs a furniture company $8,750 to produce 25 tables. The company’s total […]
Chapter 1 You have driven 800 miles on a vacation and then you
Ten Principles of Economics 41 59. Consider Mandy’s decision to go to college. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. If she does not go to college, […]
Chapter 1 When the government redistributes income from the wealthy
Ten Principles of Economics 21 19. The terms equality and efficiency are similar in that they both refer to benefits to society. However they are different in that a. equality refers to uniform distribution of those benefits and efficiency refers […]
Chapter 1 The phenomenon of scarcity stems from the fact that
Ten Principles of Economics Multiple Choice – Section 00: Introduction 1. The English word that comes from the Greek word for “one who manages a household” is a. market. b. consumer. c. producer. d. economy. ANSWER: d POINTS: 1 DIFFICULTY: […]
Chapter 24 People Will Want Hold More Money The
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34. According to liquidity preference theory, the money-supply curve is a. upward sloping. b. […]
Chapter 24 Most macroeconomic variables that measure some
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 113. According to liquidity preference theory, an increase in the price level shifts the […]
Chapter 22 During The Last Tax Year You
Money Growth and Inflation 7489 58. Given a nominal interest rate of 5 percent, in which of the following cases would you earn the highest after–tax real rate of interest? a. Inflation is 3 percent; the tax rate is 15 […]
Chapter 22 On a given morning, Franco sold 40 pairs
Money Growth and Inflation 7389 96. Economic variables whose values are measured in goods are called a. dichotomous variables. b. nominal variables. c. classical variables. d. real variables. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.148 – LO: 30-1 […]
Chapter 20 Instead Spending Money Electronic Timing System That
Unemployment 6973 6. Suppose that efficiency wages become more common in the economy. Imposing efficiency wages a. increases the quantity demanded and decreases the quantity supplied of labor. b. decreases the quantity demanded and increases the quantity supplied of labor. […]
Chapter 20 One way to characterize the difference between compounding
Unemployment 6893 194. Which of the following is not an explanation for the existence of unemployment in the long run? a. it takes time for workers to search for the jobs that are best suited for them b. minimum–wage laws […]
Chapter 20 The future value of the $500 is
Unemployment 6813 27. Who of the following would be included in the Bureau of Labor Statistics’ “unemployed” category? a. Miguel, who is on temporary layoff b. Reta, who worked only 15 hours last week c. Marisa, who neither has a […]
Chapter 17 Inexpensive Alternative Oil Were Found The
Production and Growth 6131 72. Megan is a landscaper. Which of the following are included in her physical capital? a. her knowledge of landscaping learned in college and her landscaping equipment b. her knowledge of landscaping learned in college, but […]
Chapter 14 Katherine gives piano lessons for $15 per hour
Monopoly 3661 33. A fundamental source of monopoly market power arises from a. perfectly elastic demand. b. perfectly inelastic demand. c. barriers to entry. d. availability of “free” natural resources, such as water or air. ANSWER: c POINTS: 1 DIFFICULTY: […]
Chapter 12 Refer Figure 139 Which Curve Represents The
The Costs of Production 3303 34. If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low […]
Chapter 10 An externality arises when a person engages in an activity
Externalities 2643 © 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 79. Which of the following require firms to pay to pollute? (i) […]
Chapter 9 In Canada, you can obtain a hockey stickby trading 5 baseball bats
2464 Application: International Trade 64. What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain. ANSWER: Arguments mentioned in the text include […]
Chapter 8 United States Labor Supply More Inelastic More
Application: The Costs of Taxation 2229 28. Refer to Figure 8-26. How much is producer surplus at the market equilibrium? ANSWER: Producer surplus is 0.5 x 80 x (4-0) = $160 at the market equilibrium. POINTS: 1 DIFFICULTY: Difficulty: Moderate […]
Chapter 6 Which of the following is not correct?
Supply, Demand, and Government Policies 1. Which of the following is not correct? a. Economists have two roles: scientist and policy adviser. b. As scientists, economists develop and test theories to explain the world around them. c. Economic policies rarely […]
Chapter 5 The price elasticity of demand for a good measure
Elasticity and Its Application 1317 89. If the price elasticity of supply is zero, then a. supply is more elastic than it is in any other case. b. the supply curve is horizontal. c. the quantity supplied is the same, […]
Chapter 5 The price elasticity of demand measures how much
Elasticity and Its Application 1257 47. Food and clothing tend to have a. small income elasticities because consumers, regardless of their incomes, choose to buy relatively constant quantities of these goods. b. small income elasticities because consumers buy proportionately more […]
Chapter 23 The number of dollars you receive decreases and the
Aggregate Demand and Aggregate Supply 7995 40. The model of aggregate demand and aggregate supply a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between […]
Chapter 23 If your real wage rose by a greater percentage
Aggregate Demand and Aggregate Supply Multiple Choice – Section 00: Introduction 1. Which of the following explains why production rises in most years? a. increases in the labor force b. increases in the capital stock c. advances in technological knowledge […]
Chapter 22 The number of dollars you receive increases
Money Growth and Inflation 7541 19. The quantity equation is expressed as _____. The rate at which money changes hands is known as _____. ANSWER: M x V = P x Y, velocity POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: ECON.MANK.15.148 […]
Chapter 22 The payments you make on your automobile loan are
Money Growth and Inflation 7449 218. If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate? a. 4 percent b. 6 percent c. 8 […]
Chapter 22 Which of the following best illustrates the concept
Money Growth and Inflation 7349 20. In the long run, money demand and money supply determine a. the value of money and the real interest rate. b. the value of money but not the real interest rate. c. the real […]
Chapter 19 The field of finance is intimately concerned with the
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 194. If the interest rate is 4%, in which of the following cases is […]
Chapter 18 In the U.S., when the price of oil rises, the CPI rises by much
Saving, Investment, and the Financial System 6499 4. When a firm wants to borrow directly from the public to finance the purchase of new equipment, it does so by selling shares of stock. a. True b. False ANSWER: False POINTS: […]
Chapter 18 The CPI and GDP deflator usually tell two different stories
Saving, Investment, and the Financial System 6419 6. Other things the same, when the interest rate rises, a. people would want to lend more, making the supply of loanable funds increase. b. people would want to lend less, making the […]
Chapter 16 because prices have also risen, the standard of living
Measuring the Cost of Living 141 23. Refer to Scenario 24-1. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost a. $0.27, so tennis balls were cheaper in 1975. b. $0.27, so tennis balls […]
Chapter 14 Charge Single Price 18 All Passenger’s Continue
Monopoly 3841 42. Refer to Scenario 15-6. How much additional profit can the concert promoters earn by charging each customer their willingness to pay relative to charging a flat price of $150 per ticket? a. $25,000 b. $50,000 c. $75,000 […]
Chapter 14 The difference between accounting profit and economic profit
Monopoly 3761 Table 15–13 The following table gives information on the price, quantity, and total cost of production for a monopolist. Price Output Total Costs $5 0 $3 $4 5 $8 $3 10 $20 $2 15 $33 $1 20 $53 […]
Chapter 14 When calculating a firm’s profit, an economist will subtract only
Monopoly 3701 32. For a monopoly firm, which of the following equalities is always true? a. price = marginal revenue b. price = average revenue c. price = total revenue d. marginal revenue = marginal cost ANSWER: b POINTS: 1 […]
Chapter 14 Once the seeds have grown into flowers, she can sell them for $150
Monopoly 3681 74. Refer to Figure 15-2. Which of the following reasons describes the fundamental barrier to entry for the monopoly in the figure? a. monopoly resources b. government regulation c. the production process d. Both a and b are […]
Chapter 14 She also grows flowers, which she arranges and sells at the local
Monopoly Multiple Choice – Section 00: Introduction 1. A competitive firm a. and a monopolist are price takers. b. and a monopolist are price makers. c. is a price taker, whereas a monopolist is a price maker. d. is a […]
Chapter 13 When she closed the account, the bank representative mentioned that
Firms in Competitive Markets 3511 182. Refer to Figure 14-5. When market price is P2, a profit-maximizing firm’s losses can be represented by the area a. (P4 – P2) × Q2. b. (P2 – P1) × (Q2-Q1). c. At a […]
Chapter 13 The amount of money that a wheat farmer could have earned if
Firms in Competitive Markets 3431 25. Refer to Table 14-7. If the firm is maximizing profit, how much profit is it earning? a. $0.50 b. $7.50 c. $10 d. There is insufficient data to determine the firm’s profit. ANSWER: d […]
Chapter 13 Pete owns a shoe-shine business
Firms in Competitive Markets 3391 36. Which of the following statements regarding a competitive market is not correct? a. There are many buyers and many sellers in the market. b. Because of firm location or product differences, some firms can […]
Chapter 12 cost of forgone labor earnings for an entrepreneur
The Costs of Production 3283 78. Refer to Figure 13-3. Assuming that the firm depicted produces cookies, which of the statements below is most consistent with the shape of the total cost curve? a. Producing an additional cookie is always […]
Chapter 12 efficient allocation of resources and external effects
The Costs of Production Multiple Choice – Section 00: Introduction 1. Analyzing the behavior of the firm enhances our understanding of a. what decisions lie behind the market supply curve. b. how consumers allocate their income to purchase scarce resources. […]