Archives: Quiz

1) a company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor-hours. a fixed manufacturing overhead volume variance will not necessarily occur in a month in […]

1) a company that makes horsehair cowboy belts cannot meet the demand for belts due to a limited supply of artisans who know how to make the belts. to determine which models of the cowboy belts should be emphasized, the […]

1) the consumer price index was 177.1 in 2001 and 179.9 in 2002. therefore, the rate of inflation in 2002 was about: a.6.7 percent. b.3.4 percent. c.1.6 percent. d.4.1 percent. 2) In which of the following pairs of antitrust cases […]

1) what percentage of the u.s. adult population has a college or postcollege education (as of 2007)? a.8 percent b.29 percent c.41 percent d.75 percent 2) The total supply of land is: A.upsloping. B.perfectly elastic. C.perfectly inelastic. D.greater in the […]

1) The following table contains hypothetical data for the 2010 U.S. balance of payments. Answer the next question(s) on the basis of this information. All figures are in billions of dollars. Refer to the above data. The U.S. balance on […]

1) which of the following best defines national income? a.income received by households less personal taxes b.the before-tax income received by households c.incomes earned by u.s. resource suppliers plus taxes on production and imports d.the market value of the annual […]

1) The effectiveness of the built-in or automatic stabilizers is limited because: A.the stabilizers produce budget surpluses during recessions. B.transfer payments and subsidies increase during inflation and decrease during recessions. C.the offset the stabilizers provide to a change in private […]

1) utility: a.is synonymous with usefulness. b.is want-satisfying power. c.is easy to quantify. d.rarely varies from person to person. 2) All of the following are regulatory commissions dealing with social regulation (as distinct from industrial regulation) except the: A.Food and […]

1) refer to the above table. if demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be: a.$10 and 60 units. b.$9 and 50 units. c.$8 and […]

1) In 2004 the real per capita income in the average industrially advanced country was about $36,608 per year. The average in low-income developing countries was about $649 per year. (a)What is the gap in the average standards of living? […]

1) The following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. Refer to the above data. If this nation were entirely closed to international trade, equilibrium price and quantity would […]

1) The majority of union members in the United States belong to unions that are: A.affiliated with the United Workers of America (UWA). B.affiliated with the AFL-CIO. C.independent unions that are not affiliated with the AFL-CIO. D.growing rapidly in membership. […]

1) If Kelly deposits $10,000 into an account that pays 8 percent interest, compounded annually, and she makes no further deposits or withdrawals, how much will Kelly have in her account at the end of 5 years? A.$14,000 B.$14,482 C.$14,693 […]

1) The following information is for a closed economy: Refer to the above information. If both government spending and taxes are zero, the equilibrium level of GDP is: A.$200. B.$300. C.$400. D.$500. 2) labor productivity is defined as: a.total output/worker-hours. […]

1) In which of the above market situations will the largest portion of an excise tax of a specified amount per unit of output be borne by producers? A.4 B.3 C.1 D.2 2) which of the following statements is most […]

1) A decrease in the reserve ratio increases the: A.amount of actual reserves in the banking system. B.amount of excess reserves in the banking system. C.number of government securities held by the Federal Reserve Banks. D.ratio of coins to paper […]

1) Which of the following is a true statement? A.Under normal conditions there is a short-run tradeoff between inflation and unemployment. B.There is a long-run tradeoff between inflation and unemployment. C.The short-run Phillips Curve is vertical. D.The long-run Phillips Curve […]

1) Which of the following has bolstered the case for active monetary policy? A.budget surpluses B.increasing globalization of financial markets C.the success of monetary policy in helping the economy emerge from the 1990-1991 recession and sustain economic growth through the […]

1) refer to the above graphs. an increase in the economy’s human capital would: a.move the economy away from point a and toward point b. b.shift curve cd to ab. c.move the economy away from point b and toward point […]

1) refer to the above diagram. the slope of curve zz at point b is: a.infinity. b.zero. c.+1 d.-1 2) slopes of lines are especially important in economics because: a.they measure marginal changes. b.they always tell us something about profits. […]

1) Many economists are critical of the minimum wage because they believe that it: A.hurts the efforts of labor unions. B.reduces the number of available job opportunities. C.conflicts with policies designed to equalize the distribution of income. D.causes labor shortages […]

1) Refer to the above diagram. The sizes of the multipliers associated with changes in investment and government spending in this economy are: A.2.5 and 1.5 respectively. B.3 and 2 respectively. C.both 2.5. D.2 and 3 respectively. 2) the price […]

1) Refer to the above diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD1 to AD2 will: A.move the economy from a to b to c. B.move the economy directly from a to c. […]

1) According to international comparisons, which nation had the highest hourly wages in U.S. dollar terms in 2006? A.United States B.Germany C.Denmark D.Sweden 2) (consider this) the assertion by economists that “there is no free lunch” is: a.contradicted by the […]

1) An increase in input productivity will: A.shift the aggregate supply curve leftward. B.reduce the equilibrium price level, assuming downward flexible prices. C.reduce the equilibrium real output. D.reduce aggregate demand. 2) Suppose population A, consisting of Al, Bob, Curt, Doris, […]

1) Research involving industrially advanced countries suggests that: A.the more independent the central bank, the lower the average annual growth of real GDP. B.the more independent the central bank, the higher the average annual growth of real GDP. C.there is […]

1) which of the following has been a significant factor in ipods replacing portable cd players? a.ipods are now less than one-half the price of cd players. b.a scarcity of production capacity has curtailed the manufacture of cd players. c.most […]

1) Because majority voting fails to incorporate the strength of the preferences of individual voters, it: A.creates negative externalities. B.produces economically inefficient outcomes under some circumstances. C.leads to market failure. D.leads to politics dominated by special interest groups. 2) If […]

1) (Consider This) Which of the following nations has implemented policies that pay women to have additional children? A.Russia. B.France. C.Italy. D.All of these nations. 2) (Last Word) In The General Theory of Employment, Interest, and Money: A.Adam Smith stated […]

1) assumptions: 1) employers in this market are willing and able to ignore minimum wage laws; 2) sd represents the supply of domestically-born (and legal immigrant) workers; 3) st represents the total supply of workers in this labor market (sd […]

1) Suppose that a firm introduces a highly profitable new product. If this new product offers less marginal utility per unit to consumers than existing substitute products, then the: A.laws of economics have been violated. B.new product must have increasing, […]

1) Banks create money when they: A.add to their reserves in the Federal Reserve Bank. B.accept deposits of cash. C.sell government bonds. D.exchange checkable deposits for the IOU’s of businesses and individuals. 2) Refer to the above diagram. The production […]

1) Refer to the above labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. An inclusive union could increase the level of employment above […]

1) refer to the above diagram. if this is a competitive market, price and quantity will move toward: a.$60 and 100 respectively. b.$60 and 200 respectively. c.$40 and 150 respectively. d.$20 and 150 respectively. 2) The process by which new […]

1) Refer to the above diagram. Which of the following would be consistent with a decrease in racial prejudice against African-Americans and thus in the discrimination coefficients of employers, taken as a group? A.a shift in the labor demand curve […]

1) Refer to the above diagram that applies to a private closed economy. If gross investment is Ig 1, the equilibrium GDP and the level of consumption will be: A.H and HB respectively. B.J and JI respectively. C.J and JK […]

1) an economic system: a.requires a grouping of private markets linked to one another. b.is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem. c.requires some sort of centralized authority (such as […]

1) refer to the above information. average fixed cost is: a. b. c. d. 2) according to emerson: “want is a growing giant whom the coat of have was never large enough to cover.” according to economists, “want” exceeds “have” […]

1) Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan amount is: A.$400. B.$1,600. C.$160. D.$85. 2) Compensating differences in wages pay workers for: A.differences in worker training […]

1) susie buys two goods – rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of […]

1) If a country has a total fertility rate of 1.8, then all else equal we would expect: A.population in that country to rise over time. B.population in that country to fall over time. C.the replacement rate to also equal […]

1) refer to the above diagram for a purely competitive producer. the lowest price at which the firm should produce (as opposed to shutting down) is: a.p1. b.p2. c.p3. d.p4. 2) which of the following is a characteristic of pure […]

1) Public choice economists: A.analyze the incidence of taxes. B.are also known as Keynesian economists. C.use the tools of economics to analyze decision making, politics, and elections in the public sector. D.are, by definition, economists employed by Federal, state, and […]

1) Saving is always equal to: A.planned investment less unintended increases in inventories. B.actual investment. C.planned investment. D.unintended changes in inventories. 2) Which of the following is the best example of a market failure that would lead a firm to […]

1) which of the following will not hold true for a competitive firm in long-run equilibrium? a.p equals afc b.p equals minimum atc c.mc equals minimum atc d.p equals mc 2) refer to the above diagram. if actual production and […]

1) suppose that, when producing 10 units of output, a firm’s avc is $22, its afc is $5, and its mc is $30. this: a.firm’s atc is $35. b.firm’s atc is $57. c.firm’s total cost is $270. d.firm’s total cost […]

1) Refer to the above diagram. If the supply of loanable funds is S0 and the demand for loanable funds is D0, the equilibrium interest rate and quantity of funds borrowed will be: A.G and A. B.F and A. C.F […]

1) refer to the above information and assume the stadium capacity is 5,000. the supply of seats for the game: a.varies inversely with ticket prices. b.varies directly with ticket prices. c.is perfectly inelastic. d.is perfectly elastic. 2) Profit-maximizing extraction companies […]

1) marginal revenue is the: a.change in product price associated with the sale of one more unit of output. b.change in average revenue associated with the sale of one more unit of output. c.difference between product price and average total […]

1) Noncompeting groups of workers are the result of: A.differences in the age-earnings profiles of workers. B.differences in the “job tastes” of workers. C.differences in the innate and acquired abilities of workers. D.geographic immobilities. 2) net exports are: a.that portion […]