Archives: Quiz

1) The MC curves in the above diagram slope upward because of the law of: A.demand. B.conservation of matter and energy. C.diminishing marginal utility. D.diminishing returns. 2) refer to the above data. which of the following represents the demand schedule […]

1) Refer to the above diagram for the Federal funds market. If the quantity of reserves falls from $150 billion to $125 billion, we can expect: A.the Federal funds rate to rise to 4.0 percent. B.the discount rate to rise […]

1) Other things being constant, what will be the effect of each of the following on disposable income (or real GDP)? (a)An increase in the amount of liquid assets consumers are holding (b)A sharp rise in stock prices (c)A rapid […]

1) assuming no change in product demand, a pure monopolist: a.can increase price and increase sales simultaneously because it dominates the market. b.adds an amount to total revenue which is equal to the price of incremental sales. c.should produce in […]

1) Statistical discrimination: A.is malicious. B.is profitable, but not malicious. C.cannot persist because of competition. D.explains all occupational discrimination. 2) Firm X develops a new product and gets a head start in its production. Other firms try to produce a […]

1) refer to above data. marginal utility becomes negative beginning with the: a.first unit. b.second unit. c.third unit. d.fourth unit. 2) skeptics of the recent productivity acceleration say that: a.it is too early to predict whether recent boosts in u.s. […]

1) since 1941 personal taxes have: a.risen absolutely, but declined as a percentage of personal income. b.risen both absolutely and as a percentage of personal income. c.fallen absolutely, but risen as a percentage of personal income. d.fallen both absolutely and […]

1) a firm that produces a single product but owns plants in many different stages of the production process – for example, a steel producer that owns iron ore mines and rolling mills – best illustrates a: a.vertically integrated firm. […]

1) refer to the above diagram. a surplus of 160 units would be encountered if price was: a.$1.10, that is, $1.60 minus $.50. b.$1.60. c.$1.00. d.$.50. 2) (last word) the immigration acts of 1921 and 1924: a.set annual quotas that […]

1) Most mainstream macroeconomists oppose a strict requirement to balance the Federal budget annually because they conclude that such a requirement would: A.increase real interest rates and drive out investment spending. B.eliminate monetary policy as a stabilization tool. C.force government […]

1) The plus items below are “export-type” entries and the minus items are “import-type” entries in the balance of payments for the hypothetical country of Zippo. Refer to the above information. The current account items for Zippo are: A.1, 2, […]

1) macroeconomics can best be described as the: a.analysis of how a consumer tries to spend income. b.study of the large aggregates of the economy or the economy as a whole. c.analysis of how firms attempt to maximize their profits. […]

1) Refer to the above table representing Kara’s bank account. Assuming that $2000 was deposited into her account at the beginning of year 1, and no further deposits or withdrawals were made, the value for cell D: A.is $662. B.is […]

1) the following information: refer to the above data. the marginal product of the fourth worker: a.is 5 b.is 7 c.is 71/2 d.cannot be calculated from the information given. 2) when the percentage change in price is greater than the […]

1) (Last Word) Which one of the following is one of the leading economic indicators? A.index of consumer expectations B.the unemployment rate C.the consumer price index D.Federal income tax collections 2) The change in a firm’s total revenue that results […]

1) Which of the following statements is consistent with evidence? A.It is widely accepted that central planning will accelerate a DVCs growth rate. B.It is generally agreed that a laissez-faire policy for government will maximize economic growth. C.The effectiveness of […]

1) the following table applies to a purely competitive industry composed of 100 identical firms. refer to the above table. for each of the 100 firms in this industry, marginal revenue and total revenue will be: a.$4 and $400, respectively. […]

1) Movie producers A, B, and C secretly meet and agree to release their summer blockbuster films in sequence, rather than at the same time. The U.S. Justice Department learns of the agreement and files an antitrust suit. The Federal […]

1) the following cost data for a purely competitive seller: refer to the above data. if product price is $75, the firm will produce: a.3 units of output. b.4 units of output. c.5 units of output. d.6 units of output. […]

1) Assume the atmosphere of an urban area is able to reabsorb 4000 tons of pollutants per year. The schedule below shows the price polluters would be willing to pay for the right to dispose of 1 ton of pollutants […]

1) the marginal tax rate is: a.less than the average tax rate when a tax is progressive. b.calculated by dividing total taxes paid by one’s total taxable income. c.the percentage of one’s total income that is paid in taxes. d.the […]

1) Using income as the tax base, which of the following best illustrates a regressive tax? A.the Federal inheritance tax B.a 7 percent general sales tax C.the corporate income tax D.the personal income tax 2) the theory of consumer behavior […]

1) Answer the next five questions on the basis of the following hypothetical data for a nation Malthusia. All numbers are in billions of dollars. (a)What was the balance on goods? (b)What was the balance on goods and services? (c)What […]

1) Statistical discrimination refers to: A.the crowding of women or minorities into low-paying occupations. B.significant differences in average levels of earnings by gender, race, and ethnicity, after accounting for nondiscriminatory factors. C.making individual hiring decisions on the basis of the […]

1) Refer to the above table. If the full-employment real GDP is $40 the: A.inflationary expenditure gap is $20. B.inflationary expenditure gap is $10. C.recessionary expenditure gap is $30. D.recessionary expenditure gap is $10. 2) A demand curve for a […]

1) refer to the above diagram, which shows demand and supply conditions in the competitive market for product x. given d0, if the supply curve moved from s0 to s1, then: a.supply has increased and equilibrium quantity has decreased. b.supply […]

1) The Federal funds market is the market in which: A.banks borrow from the Federal Reserve Banks. B.U.S. securities are bought and sold. C.banks borrow reserves from one another on an overnight basis. D.Federal Reserve Banks borrow from one another. […]

1) in constructing models, economists: a.make simplifying assumptions. b.include all available information. c.must use mathematical equations. d.attempt to duplicate the real world. 2) which of the following is not correct? a.where marginal product is greater than average product, average product […]

1) If the marginal propensity to consume is 0.9 in a private closed economy, a $20 billion decline in investment spending will decrease: A.GDP by $20 billion. B.GDP by $100 billion. C.saving by $20. D.consumption by $200 billion. 2) Fiscal […]

1) The creation of markets for pollution rights would provide: A.neither an incentive not to pollute nor revenue for environmental improvement. B.funds for environmental improvement, but would not provide an incentive to refrain from polluting. C.an incentive not to pollute, […]

1) what percentage of the u.s. adult population has at least a high school education (as of 2007)? a.41 percent b.75 percent c.86 percent d.95 percent 2) the primary motivation for economic immigration is: a.the prospect of paying lower prices […]

1) the demand curve faced by a pure monopolist: a.may be either more or less elastic than that faced by a single purely competitive firm. b.is less elastic than that faced by a single purely competitive firm. c.has the same […]

1) Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor. Relevant product markets are competitive. The two labor demand curves are identical and initially the quantities of labor employed in the two […]

1) negative externalities arise: a.when firms pay more than the opportunity cost of resources. b.when the demand curve for a product is located too far to the left. c.when firms “use” resources without being compelled to pay for their full […]

1) If the amount of money in circulation is $180 billion and the value of the economy’s total output is $540 billion, then the: A.circulation period of money must be one-fourth of a year. B.velocity of money is 4 C.average […]

1) At the optimal quantity of a public good: A.marginal benefit exceeds marginal cost by the greatest amount. B.total benefit equals total cost. C.marginal benefit equals marginal cost. D.marginal benefit is zero. 2) If we plotted the above data on […]

1) (consider this) refer to the above diagram. the u.s. response to the events of september 11, 2001, is illustrated by the: a.shift of the production possibilities curve from cd to ab. b.shift of the production possibilities curve from ab […]

1) since world war ii: a.north korea’s command economy has significantly outperformed south korea’s market economy. b.south korea’s command economy has significantly outperformed north korea’s market economy. c.north korea’s market economy has significantly outperformed south korea’s command economy. d.south korea’s […]

1) the above diagram shows the short-run average total cost curves for five different plant sizes of a firm. in the long run the firm should produce output 0x with a plant of size: a.#4. b.#3. c.#2. d.#1. 2) Economists […]

1) refer to the above diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. flow (1) might represent: a.corporate income tax payments. b.government provision of highways for truck transportation. c.business property tax payments. d.transfer payments to […]

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) resources are efficiently allocated when production occurs where: a.marginal cost equals average variable cost. b.price is equal to average revenue. c.price is equal to marginal cost. d.price is equal to average variable cost. 2) other things equal, the greater […]

1) fiscal policy: a.is enacted by the nation’s central bank (the federal reserve in the u.s.). b.refers to government spending and taxation policies aimed at promoting price stability and full employment. c.directly raises or lowers the level of interest rates […]

1) assumptions: (1) the demand for labor in alphania and betania are as shown by da and db, respectively; (2) alphania’s native labor force is f and that of betania is g; (3) wage l in alphania is equal to […]

1) Which of the following is a true statement? A.firms and resource suppliers generally find it easier to reduce prices than to raise them. B.as the price level increases, interest rates will rise and therefore consumption and investment spending will […]

1) on the basis of the above information it can be said that: a.no coincidence of wants exists between any two states. b.a coincidence of wants exists between michigan and washington. c.a coincidence of wants exists between texas and washington. […]

1) The financial account balance is a nation’s: A.net investment income minus its net transfers. B.exports of goods and services minus its imports of goods and services. C.sale of real and financial assets to people living abroad minus its purchases […]

1) value added can be determined by: a.summing the profits of all enterprises in the economy. b.subtracting the purchase of intermediate products from the value of the sales of final products. c.calculating the year-to-year changes in real gdp. d.deflating nominal […]

1) refer to the above diagram. other things equal, this economy will achieve the most rapid rate of growth if: a.the ratio of capital to consumer goods is minimized. b.it chooses point c. c.it chooses point b. d.it chooses point […]

1) A major difference between social insurance and public assistance is that the: A.former is regarded as an earned right while the latter is public charity. B.latter is regarded as an earned right while the former is public charity. C.latter […]