Archives: Quiz

1) 2) (consider this) refer to the above diagram. the direct economic impact of the destruction and loss of lives caused by the terrorist attacks of september 11, 2001 is illustrated by the: a.shift of the production possibilities curve from […]

1) Refer to the above diagram, in which Qf is the full-employment output. The shift in the aggregate demand curve from AD3 to AD2 could result from which of the following fiscal policy actions? A.a tax reduction B.a tax reduction […]

1) Which of the following was not a contributing cause of the decline in investment and thus the recessionary expenditure gap occurring during the U.S. recession of 2001? A.overcapacity in major industries B.pessimism relating to the stock market crash C.the […]

1) households and businesses are: a.both buyers in the resource market. b.both sellers in the product market. c.sellers in the resource and product markets respectively. d.sellers in the product and resource markets respectively. 2) In exchange for a share of […]

1) refer to the above table. in relation to column (3), a change from column (5) to column (4) would indicate a(n): a.increase in demand. b.decrease in demand. c.increase in supply. d.decrease in supply. 2) Refer to the above diagrams. […]

1) in the long run: a.all costs are variable costs. b.all costs are fixed costs. c.variable costs equal fixed costs. d.fixed costs are greater than variable costs. 2) Which one of the following is presently a major deterrent to bank […]

1) Changes in the discount rate are: A.the most powerful and useful tool of monetary policy. B.less frequent than changes in the reserve requirement. C.more important than open-market operations. D.less important than open-market operations in implementing monetary policy. 2) a […]

1) the long run is characterized by: a.the relevance of the law of diminishing returns. b.at least one fixed input. c.insufficient time for firms to enter or leave the industry. d.the ability of the firm to change its plant size. […]

1) If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will: A.be unaffected. B.rise by 3 percent. C.fall by 3 percent. D.rise by 11 percent. 2) For which one of […]

1) Other things equal, a reduction in personal and business taxes can be expected to: A.increase aggregate demand and decrease aggregate supply. B.increase both aggregate demand and aggregate supply. C.decrease both aggregate demand and aggregate supply. D.decrease aggregate demand and […]

1) Other things equal, an increase in the price level will: A.shift the aggregate supply curve to the right. B.shift the aggregate demand curve to the right. C.cause a movement up along a short-run aggregate supply curve. D.cause a movement […]

1) the three most important sources of federal tax revenue in order of descending importance are: a.sales, payroll, and personal income taxes. b.personal income, corporate income, and sales taxes. c.personal income, corporate income, and payroll taxes. d.personal income, payroll, and […]

1) One of the consequences of the U.S. trade deficit is that: A.domestic inflation has resulted. B.the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America. C.the distribution of income in the United […]

1) depreciation of the dollar will: a.increase the prices of u.s. imports, but decrease the prices of u.s. exports. b.decrease the prices of u.s. imports, but increase the prices of u.s. exports. c.increase the prices of both u.s. imports and […]

1) Refer to the above data. Over the $10 to $8 range of wage rates, the demand for labor is: A.perfectly elastic. B.elastic. C.unit elastic. D.inelastic. 2) Refer to the above diagram, where Sd and Dd are the domestic supply […]

1) (Advanced analysis) Answer the next question(s) on the basis of the following information for a private closed economy. where S is saving, Ig is gross investment, i is the real interest rate, and Y is GDP. Refer to the […]

1) A merger between an automobile manufacturer and a maker of automobile tires is an example of a: A.conglomerate merger. B.horizontal merger. C.vertical merger. D.tying contract. 2) by an increase in demand we mean that : a.product price has fallen […]

1) The movement of individuals and households from one income quintile to another over time is called: A.income averaging. B.wealth turnover. C.income mobility. D.the ratchet effect. 2) In the above diagram, the most favorable shift of the aggregate supply curve […]

1) symbols: q = number of workers demanded; w = wage rate; and vtp = value of the cumulative total product (output) of the particular number of workers. assumptions: (1) the current wage in zinnia is $20 and the current […]

1) Capitalist income (corporate profits, interest, and rent) has: A.declined sharply since 1900 because of the growing strength of labor unions. B.remained approximately constant in this century. C.increased significantly because of rising rents. D.fallen in this century because of the […]

1) Refer to the above diagram. The move of the economy from c to e on short-run Phillips Curve PC2 would be explained by an: A.increase in aggregate demand in the economy. B.increase in aggregate supply in the economy. C.actual […]

1) The assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government securities to commercial banks (paid for out of commercial bank reserves) and buys $500 of securities from individuals, who deposit the […]

1) Consider the two diagrams below. Diagram A represents a typical firm in a purely competitive industry. Diagram B represents the supply and demand conditions in that industry. (a)Describe the price, output, and profit situation for the individual firm in […]

1) a typical concave (to the origin) production possibilities curve implies: a.that economic resources are unlimited. b.that society must choose among various attainable combinations of goods. c.decreasing opportunity costs. d.that society is using a market system to allocate resources. 2) […]

1) if there are no statistical discrepancies, ndp is: a.ni minus net foreign factor income. b.ni plus corporate income taxes. c.gdp deflated for increases in the price level. d.gdp minus taxes on production and imports. 2) answer the next question(s) […]

1) refer to the above data sets. which of the data sets would graph as an upsloping line? a.1 only. b.1, 2, and 3 only. c.4 and 5 only. d.1, 2, and 5 only. 2) Which of the following would […]

1) for a progressive tax the: a.average tax rate exceeds the marginal tax rate as income rises. b.marginal tax rate declines as income increases. c.average and marginal tax rates are equal. d.marginal tax rate exceeds the average tax rate as […]

1) refer to the above graphs. assume that pizza is measured in slices and beer in pints. in which of the graphs is the opportunity cost of a pint of beer equal to one slice of pizza? a.graph a b.graph […]

1) “economics is concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.” this statement is: a.positive, but incorrect. b.positive and correct. c.normative, but incorrect. d.normative and correct. 2) In the long run: A.attempts to “fine […]

1) The crowding-out effect of expansionary fiscal policy suggests that: A.tax increases are paid primarily out of saving and therefore are not an effective fiscal device. B.increases in government spending financed through borrowing will increase the interest rate and thereby […]

1) In 2007, about ____ percent of employed wage and salary workers belonged to unions. A.20.3 B.6.8 C.10.4 D.12.1 2) a firm can sell more or less output at a constant price. demand is thus: a.perfectly inelastic. b.perfectly elastic. c.relatively […]

1) the problems of corporations such as enron and worldcom occurred because: a.they failed to offer stock to executives to encourage profit-seeking decisions. b.providing stock as part of executive compensation encouraged fraudulent practices designed to exaggerate profits and artificially inflate […]

1) Assume there is an increase in government spending and a reduction in net taxes. With a specific money supply, the consequent: A.contractionary impact might be lessened by the resulting increase in the interest rate. B.expansionary impact might be lessened […]

1) Overall, economists believe that deregulation of industries formerly subjected to industrial regulation: A.has been a clear failure. B.is neutral in its impact to society’s well-being, creating minimal net benefits at best. C.has produced large net benefits for consumers and […]

1) if a rational consumer is in equilibrium, which of the following conditions will hold true? a.mua = mub = muc = … = mun. b.the marginal utility of each good purchased will be zero. c.the marginal utility of the […]

1) The following 2008 balance of payments statement for Transylvania. All figures are in billions of dollars. Refer to the above data. In 2008 Transylvania was a net recipient of transfers from the rest of the world. 2) which of […]

1) Refer to the above diagram pertaining to two nations and a specific product. Lines FA and GB are: A.domestic supply curves for two countries. B.domestic demand curves for two countries. C.import demand curves for two countries. D.export supply curves […]

1) An increase in the money supply will: A.lower interest rates and lower the equilibrium GDP. B.lower interest rates and increase the equilibrium GDP. C.increase interest rates and increase the equilibrium GDP. D.increase interest rates and lower the equilibrium GDP. […]

1) which of the following is most likely to be a variable cost? a.fuel and power payments b.interest on business loans c.rental payments on ibm equipment d.real estate taxes 2) the main purpose of hmos and ppos is to: a.reduce […]

1) Ignoring international trade, in a mixed economy aggregate expenditures are comprised of: A.Ca + S + G. B.Ca + Ig + G. C.Ca + S + Ig. D.Ca + T + Ig. 2) as it relates to economic growth, […]

1) refer to the above diagram. the equation that shows the relationship between y and x is: a.y = 50 + 1/4 x b.x = 1/4y c.y = .4x d.y = 1/4 x – 50 2) The interest rate that […]

1) Income mobility: A.makes lifetime income inequality among income receivers in the United States less than income inequality in any single year. B.is less in the United States than in most developing nations. C.is the movement of wage earners from […]

1) Assume that a bank initially has no excess reserves. If it receives $5,000 in cash from a depositor and the bank finds that it can safely lend out $4,500, the reserve requirement must be: A.zero. B.10 percent. C.20 percent. […]

1) The idea that a person’s productive efforts and his or her economic rewards are unrelated: A.is the neocolonialism view of economic development. B.describes the vicious circle of poverty. C.is the surplus labor theory of economic development. D.is the capricious […]

1) Refer to the above diagram for the Federal funds market. If the Fed supplies $300 billion in reserves, the equilibrium Federal funds rate is: A.6.0 percent. B.5.5 percent. C.5.0 percent. D.undeterminable with the information given. 2) Which of the […]

1) economics involves marginal analysis because: a.most decisions involve changes from the present situation. b.marginal benefits always exceed marginal costs. c.marginal costs always exceed marginal benefits. d.much economic behavior is irrational. 2) in the above diagram curves 1, 2, and […]

1) When investment remains the same at each level of GDP in a private closed economy, the slope of the aggregate expenditures schedule: A.exceeds the MPC. B.is less than the MPC. C.equals the MPS. D.equals the MPC. 2) Studies show […]

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) The aggregate supply curve (short-run): A.slopes downward and to the right. B.graphs as a vertical line. C.slopes upward and to the right. D.graphs as a horizontal line. 2) In an aggregate expenditures diagram equal increases in government spending and […]

1) If a firm is employing quantities of resources J and K so that MRPJ/PJ = MRPK/PK = 1, then: A.MPJ/PJ may either exceed or be less than MPK/PK. B.MPJ/PJ will be less than MPK/PK. C.MPJ/PJ will exceed MPK/PK. D.MPJ/PJ […]