Archives: Quiz

1) which of the following statements pertains to macroeconomics? a.because the minimum wage was raised, mrs. olsen decided to enter the labor force. b.a decline in the price of soybeans caused farmer wanek to plant more land in wheat. c.national […]

1) Refer to the above information. Money supply M1 for this economy is: A.$60. B.$70. C.$130. D.$140. 2) The bank panics of 1930-1933: A.resulted in the passage of the Smoot-Hawley Act. B.boosted the nation’s money supply, causing inflation. C.directly resulted […]

1) answer the next question(s) on the basis of the following data. all figures are in billions of dollars. refer to the above data. gross domestic product is: a.$395. b.$380. c.$375. d.$360. 2) according to estimates, what percentage of construction […]

1) graphically, producer surplus is measured as the triangle: a.under the demand curve and below the actual price. b.under the demand curve and above the actual price. c.above the supply curve and above the actual price. d.above the supply curve […]

1) (Consider This) The Consider This box “Of Catfish and Art (and Other Things in Common)” lists examples of recent antitrust cases involving: A.monopolization. B.tying contracts. C.price fixing. D.horizontal mergers. 2) The equality-efficiency tradeoff refers to: A.the conflict between risk […]

1) which of the following nations is not a member of the european union? a.switzerland b.france c.germany d.italy 2) Price fixing is considered to be a per se violation of the antitrust laws because: A.a guilty verdict requires proof of […]

1) The desire to hold money for transactions purposes arises because: A.receipts of income and expenditures are not perfectly synchronized. B.people fear that prices will rise. C.households want money on hand in case a good financial investment opportunity arises. D.low […]

1) What are the relative values of price, ATC, and AVC when a monopolist experiences: a) a profit b) a loss but continues to produce c) a loss but ceases production 2) refer to the above data. if your taxable […]

1) Assume the Standard Internet Company negotiates a loan for $5,000 from the Metro National Bank and receives a checkable deposit for that amount in exchange for its promissory note (IOU). As a result of this transaction: A.the supply of […]

1) suppose that a pure monopolist can sell 4 units of output at $2 per unit and 5 units at $1.75 per unit. the monopolist will produce and sell the fifth unit if its marginal cost is: a.$1 or less. […]

1) a manufacturer of frozen pizzas found that total revenue decreased when price was lowered from $5 to $4. it was also found that total revenue decreased when price was raised from $5 to $6. thus, a.the demand for pizza […]

1) under a system of national health insurance: a.the federal government would provide a basic health care package to all citizens at no direct cost. b.health care would be financed out of tax revenues. c.government could negotiate to reduce the […]

1) Supply-side economist Arthur Laffer has argued that: A.there is no empirically proven relationship between tax rates and incentives. B.large reductions in personal and corporate income taxes will increase aggregate supply much more than aggregate demand. C.the only way to […]

1) answer the next question(s) on the basis of the following data. all figures are in billions of dollars: refer to the above data. ndp is: a.$116. b.$121. c.$125. d.$150. 2) Because government price supports cause surplus production, government policies […]

1) refer to the above diagrams. diagram (b) represents: a.the pure competition model. b.an industry in which there is allocative efficiency but not productive efficiency. c.the pure monopoly model. d.a long-run constant-cost industry. 2) Refer to the above table. If […]

1) by an increase in demand we mean that : a.product price has fallen so consumers move down to a new point on the demand curve. b.the quantity demanded at each price in a set of prices is greater. c.the […]

1) A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that: A.labor costs and product prices are not related. B.there is no discernible relationship between wage rates and labor productivity. […]

1) (Consider This) The story about economist Irving Fisher’s conversation with his masseuse illustrates that interest payments arise because of: A.the possibility of inflation. B.the reality of credit risk. C.imperfect information about the future. D.the time-value of money. 2) The […]

1) refer to the above two diagrams for individual firms. figure 2 pertains to: a.a market characterized by government regulation of price and output. b.either an imperfectly competitive or a purely competitive seller. c.a purely competitive seller. d.an imperfectly competitive […]

1) the main determinant of elasticity of supply is the: a.number of close substitutes for the product available to consumers. b.amount of time the producer has to adjust inputs in response to a price change. c.urgency of consumer wants for […]

1) (Last Word) Construction of the first working computer “mouse” best exemplifies: A.invention. B.scientific determinism. C.diffusion. D.creative destruction. 2) graphically, consumer surplus is measured as the triangle: a.under the demand curve and below the actual price. b.under the demand curve […]

1) the “after this, therefore because of this” fallacy states that: a.positive statements are always followed by normative judgments. b.positive statements can never be proven true or false. c.if one acts on one’s expectations, those expectations will always be fulfilled. […]

1) Refer to the above diagrams, in which AD1 and AS1are the “before” curves and AD2 and AS2 are the “after” curves. Growth, full-employment and price stability is depicted by: A.panel (A) only. B.panel (B) only. C.panel (C) only. D.panels […]

1) (Last Word) The rapid spread of ATMs has: A.resulted from changes in banking laws. B.increased the demand for bank tellers. C.reduced the demand for bank tellers. D.increased the hourly wage paid to bank tellers. 2) In 1985, the exchange […]

1) Infrastructure is best illustrated by: A.farm equipment. B.school buildings and highways. C.machinery and equipment for the production of consumer goods. D.government tax revenues. 2) Use the table below for the next set of questions. Column 1 shows the interest […]

1) The following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. Refer to the above information. The $40 billion deposit […]

1) in which of the following cases will total revenue increase? a.price falls and demand is inelastic b.price falls and supply is elastic c.price rises and demand is inelastic d.price rises and demand is elastic 2) if actual gdp is […]

1) economists would describe the u.s. automobile industry as: a.purely competitive. b.an oligopoly. c.monopolistically competitive. d.a pure monopoly. 2) which of the following is correct? a.if the demand for a product is inelastic, a change in price will cause total […]

1) Independent unions: A.have greater combined membership than the AFL-CIO. B.are not affiliated with the AFL-CIO. C.include the United Autoworkers and United Steelworkers. D.have about the same combined membership as the AFL-CIO. 2) Consider the following situations. Explain how prices […]

1) refer to the above diagram. the concave shape of each production possibilities curve indicates that: a.resources are perfectly substitutable. b.wants are virtually unlimited. c.prices are constant. d.resources are not equally suited for alternative uses. 2) Currency speculators aid international […]

1) The market system does not produce public goods because: A.there is no need or demand for such goods. B.private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them. C.public enterprises can produce […]

1) assume the above figure applies to a pure monopolist. if this firm is able to price discriminate between children and adults, its profit-maximizing level of output will be: a.q1a + q1c. b.q1c + q2. c.q1a + q2. d.q1a + […]

1) Total Allowable Catch policies and Individual Transferable Quotas both: A.limit catch sizes and promote efficiency. B.limit catch sizes, but TACs promote inefficiency. C.promote efficiency, but only TACs limit catch sizes. D.promote efficiency, but only ITQs limit catch sizes. 2) […]

1) “in the corn market, demand often exceeds supply and supply sometimes exceeds demand.” “the price of corn rises and falls in response to changes in supply and demand.” in which of these two statements are the terms demand and […]

1) (Advanced analysis) Refer to the above diagram, in which C1 is the before-tax consumption schedule. Other things being equal, the economy would enjoy the greatest built-in stability with consumption schedule: A.C1. B.C2. C.C3. D.C4. 2) In which of the […]

1) (last word) critics of the 2006 massachusetts law requiring all residents to have health care insurance claim that: a.the law fails to address the problem of rising health care prices. b.the law will drive health care prices up faster […]

1) A monopsonistic employer’s marginal resource (labor) cost curve: A.is always more elastic than the labor supply curve. B.coincides with the labor supply curve. C.lies below the labor supply curve because the higher wage paid to an additional worker must […]

1) in moving along a stable supply curve which of the following is not held constant? a.the number of firms producing this good b.expectations about the future price of the product c.techniques used in producing this product d.the price of […]

1) a consumer is maximizing her utility with a particular money income when: a.the total utility derived from each product consumed is the same. b.mua/pa = mub/pb = muc/pc = … = mun/pn. c.mua = mub = muc = … […]

1) The aggregate expenditures model is built upon which of the following assumptions? A.Prices are sticky downward. B.The economy is at full employment. C.Prices are fully flexible. D.Government spending policy has no ability to affect the level of output. 2) […]

1) in industrially advanced countries estimates suggest the income elasticity of demand for health care is about: a.+3. b.+6. c.-2. d.+1. 2) the following cost data for a firm that is selling in a purely competitive market: refer to the […]

1) refer to the above data. assuming that the firm is motivated by self-interest and that the 20 units which can be produced with each technique can be sold for $2 per unit, the firm will: a.realize an economic profit […]

1) (consider this) rising wages for women in the united states have: a.increased the proportion of women working part time compared to working full time. b.increased labor costs and thus shifted the nation’s production possibilities curve inward. c.increased average family […]

1) refer to the above diagrams. in diagram (b) the profit-maximizing quantity is: a.g and the profit-maximizing price is e b.h and the profit-maximizing price is e c.g and the profit-maximizing price is f d.g and the profit-maximizing price is […]

1) The first successful commercial introduction of a new product refers to: A.invention. B.innovation. C.diffusion. D.diversification. 2) If the demand for a product is perfectly inelastic, the incidence of an excise tax will be: A.entirely on the buyer. B.mostly on […]

1) from society’s point of view the economic function of profits and losses is to: a.promote the equal distribution of real assets and wealth. b.achieve full employment and price level stability. c.contribute to a more equal distribution of income. d.reallocate […]

1) The Financial Services Modernization Act of 1999: A.set limits on the fees that banks can charge for automatic teller machine (ATM) withdrawals. B.established a new dollar coin that will replace the dollar bill in 2008. C.permitted banks, thrifts, pension […]

1) the short-run profit maximizing position of an unregulated pure monopolist is characterized by: a.p = minimum atc. b.p = mc. c.mr = mc. d.mc = atc. 2) a firm reaches a break-even point (normal profit position) where: a.marginal revenue […]

1) Refer to the above labor market diagrams. The case of bilateral monopoly is represented by Figure: A.5 B.4 C.2 D.1 2) New classical economists say that a fully anticipated decrease in aggregate demand: A.shifts the long-run aggregate supply curve […]

1) Refer to the above table. In a choice between the highway and the lighthouse: A.a majority of voters favor the lighthouse. B.a majority of voters favor the highway. C.the voters are indifferent as between the two. D.no voter decision […]