Archives: Quiz

1) Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth? A.a Congressional proposal to incur a Federal surplus to be used for the […]

1) Complete the following table, where L is the units of labor, TPL is the total product of labor, MPL is the marginal product of labor, P is product price, TR is total revenue, and MRPL is the marginal revenue […]

1) the social security program in the united states faces a long-term funding crisis because: a.the social security trust fund was exhausted in 2006 b.the number of retirees receiving benefits is rising more rapidly than the number of workers paying […]

1) which of the following is most likely to be an inferior good? a.fur coats b.ocean cruises c.used clothing d.steak 2) Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources? […]

1) The Federal funds rate is the interest rate that _______ charge(s) _______. A.banks; other banks. B.the Fed; commercial banks. C.banks; their best corporate customers. D.banks; on federal student loans. 2) search unemployment and wait unemployment are types of: a.frictional […]

1) If country A can produce both goods X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B: A.mutually advantageous specialization and trade between A and B may still be possible. B.we can […]

1) Rational expectations theory implies that the: A.aggregate demand curve is vertical. B.long-run aggregate supply curve is vertical. C.long-run aggregate supply curve is horizontal. D.long-run aggregate supply curve is quite flat. 2) suppose you have a money income of $10, […]

1) refer to the above diagram for a pure monopolist. monopoly profit: a.cannot be determined from the information given. b.will be ae per unit sold. c.will be bc per unit sold. d.will be ac per unit sold. 2) the above […]

1) Refer to the above diagram, in which Qf is the full-employment output. If the economy’s present aggregate demand curve is AD2: A.the most appropriate fiscal policy is an increase of government expenditures or a reduction of taxes. B.the most […]

1) Refer to the above diagram for the Federal funds market. If the Fed wants the Federal funds rate to be i1, what quantity of reserves do they need to make available to banks? A.Qf1. B.Qf2. C.Qf3. D.It cannot be […]

1) the law of diminishing marginal utility states that: a.total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. b.beyond some point additional units of a product will yield less and less […]

1) ticket scalping implies that: a.event sponsors have established ticket prices at above-equilibrium levels. b.an event is not likely to be sold out. c.event sponsors have established ticket prices at below-equilibrium levels. d.the demand for tickets has fallen between the […]

1) The more inelastic is demand and supply the: A.larger is the efficiency loss of an excise tax. B.smaller is the efficiency loss of an excise tax. C.higher the proportion of an excise tax paid by consumers. D.smaller the proportion […]

1) Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer. This is an example of: A.equalizing differences. B.a nonmonetary job disadvantage. C.shirking. D.the free-rider problem. 2) (consider […]

1) Public choice theory focuses on the economics of: A.fiscal and monetary policy. B.the behavior of business firms. C.antitrust and regulatory policy. D.government decision making, politics, and elections. 2) The following information is for four highway programs of increasing scope. […]

1) roughly what portion of u.s. total health spending is paid for by private and public insurance? a.one-tenth b.one-fourth c.four-fifths d.one-half 2) In the table below are the demand and supply schedules for rum in thousands of liters in a […]

1) refer to the above diagram. if price falls from $10 to $2, total revenue: a.rises from a + b to a+ b + d + c and demand is elastic. b.falls from a + d to b + c […]

1) “Pork-barrel” legislation that contains funding for hundreds of earmarks throughout numerous states often reflects: A.the paradox of voting. B.logrolling. C.the benefits-received principle. D.the Coase theorem. 2) The equation underlying the mainstream view of macroeconomics is: A.MV = PQ. B.Ca […]

1) the business-to-business (b2b) retrieval of prices of foreign resources via the internet best illustrates a(n): a.trade flow. b.capital and labor flow. c.financial flow. d.information flow. 2) refer to the above data. suppose quantity supplied declined by 23 units at […]

1) The field of economics that analyzes government decision making, politics, and elections is called: A.public finance. B.public choice theory. C.collective economics. D.political economy. 2) if a purely competitive firm is producing at the mr = mc output level and […]

1) When a commercial bank has excess reserves: A.it is in a position to make additional loans. B.its actual reserves are less than its required reserves. C.it is charging too high an interest rate on its loans. D.its reserves exceed […]

1) assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and average variable costs of $150. the firm’s total fixed costs are: a.$5,000. b.$500. c.$.50. d.$50. 2) Which one […]

1) if an economy is operating inside its production possibilities curve for consumer goods and capital goods, it: a.can only produce more consumer goods by producing fewer capital goods. b.can only produce more capital goods by producing fewer consumer goods. […]

1) some agricultural sub-saharan nations of africa have overfarmed and overgrazed their land to the extent that significant portions of it have turned into desert. this suggests that: a.the concavity of the production possibilities curves of such nations has increased. […]

1) the equilibrium price and quantity in a market usually produces allocative efficiency because: a.all consumers who want the good are satisfied. b.marginal benefit and marginal cost are equal at that point. c.equilibrium insures an equitable distribution of output. d.the […]

1) a firm’s total variable cost will depend on: a.the prices of variable resources. b.the production techniques that are used. c.the level of output. d.all of these. 2) Refer to the above diagram. Assume that nominal wages initially are set […]

1) Refer to the above data. At the profit maximizing level of employment, this firm’s, total labor cost will be: A.$16. B.$30. C.$24. D.$32. 2) refer to the above data. the supply of this product is inelastic in the $6-$5 […]

1) we would expect the cross elasticity of demand for pepsi in relation to other soft drinks to be greater than that for soft drinks generally because: a.soft drinks are normal goods. b.the income effect always exceeds the substitution effect. […]

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) an industry comprised of a small number of firms, each of which considers the […]

1) Economic profit is most closely associated with: A.the process of saving and investing. B.monopoly, innovation, and uninsurable risks. C.long-run competitive equilibrium. D.a static economy. 2) The following consolidated balance sheet of the commercial banking system. Assume that the reserve […]

1) Money market deposit accounts are included in: A.M1 only. B.M2 only. C.neither M1 nor M2. D.both M1 and M2. 2) refer to the above diagram. this firm will earn only a normal profit if product price is: a.p1 b.p2 […]

1) Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be: A.borne by resource suppliers who provide the inputs for manufacturing tires. […]

1) answer the next question(s) on the basis of the following national income data. all figures are in billions of dollars. refer to the above data. u.s. imports are: a.$26. b.$16. c.$24. d.$14. 2) A firm will find it profitable […]

1) the optimal or allocatively efficient point on a production possibilities curve is achieved where: a.the smallest physical amounts of inputs are used to produce each good. b.each good is produced at a level where marginal benefits equal marginal costs. […]

1) an unexpected increase in total spending will cause an increase in gdp: a.if prices are sticky. b.if prices are fully flexible. c.regardless of whether prices are sticky or fully flexible. d.only if prices are stuck in the long term. […]

1) the national income and product accounts (nipa) help economists and policymakers to: a.design and implement policies to improve the economy’s health. b.follow the long-run course of the economy to determine whether it has grown or stagnated. c.assess the health […]

1) Fisher Mike can catch salmon for $11 per ton and fisher Tony can catch salmon for $8 per ton. Both Mike and Tony have an individual transferable quota (ITQ) to catch 1000 tons of salmon. The market price of […]

1) which of the following statements is most accurate about the effects of migration? a.migration generally benefits the mover, but there is a net efficiency loss to the world. b.migration generally benefits everyone in both the origin and destination nation. […]

1) if the equation y = 15 – 4x was plotted, the: a.vertical intercept would be -4 b.vertical intercept would be +4 c.vertical intercept would be +9 d.slope would be -4 2) The U.S. supply of Japanese yen is: A.downsloping […]

1) an important economic problem associated with pure monopoly is that, at the profit maximizing outputs, resources are: a.overallocated because price exceeds marginal cost. b.overallocated because marginal cost exceeds price. c.underallocated because price exceeds marginal cost. d.underallocated because marginal cost […]

1) which of the following statements is not correct? a.a reduction in money income will shift the budget line to the right. b.a reduction in money income accompanied by an increase in product prices will necessarily shift the budget line […]

1) in which of the following industries or sectors of the economy will business cycle fluctuations likely have the greatest effect on output? a.military goods b.capital goods c.textile products d.agricultural commodities 2) All else equal, when the Federal Reserve Banks […]

1) Which of the following does not explain what backs the money supply in the United States? A.It is back by gold. B.It is widely accepted in transactions. C.It is designated “legal tender” by the Federal government. D.It is relatively […]

1) the quantity demanded of a product increases as its price declines because the: a.lower price shifts the demand curve rightward. b.lower price shifts the demand curve leftward. c.lower price results in an increase in supply. d.demand curve is downsloping. […]

1) a perfectly inelastic demand schedule: a.rises upward and to the right, but has a constant slope. b.can be represented by a line parallel to the vertical axis. c.cannot be shown on a two-dimensional graph. d.can be represented by a […]

1) Which of the following is directly illegal under the Sherman Act? A.price discrimination B.tying contracts C.price fixing D.interlocking directorates 2) Critics of industrial regulation say that such regulation: A.benefits small firms at the expense of large firms. B.perpetuates monopoly […]

1) Answer the next three questions on the basis of the following production possibilities data for Francia and Galacia. All data are in tons. FRANCIA PRODUCTION POSSIBILITIES: GALACIA PRODUCTION POSSIBILITIES: (a) If trade occurs between Francia and Galacia, which nation […]

1) the term quantity demanded: a.refers to the entire series of prices and quantities that comprise the demand schedule. b.refers to a situation in which the income and substitution effects do not apply. c.refers to the amount of a product […]

1) an example of a public good is: a.a movie theater. b.a freight train. c.the war on terrorism. d.disneyland. 2) if a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue: a.may be […]

1) Which of the following represents a change in today’s banking policies that should prevent a recurrence of the bank panics of 1930-1933? A.banks are more cautious lenders B.banks keep large amounts of excess reserves on hand C.the FDIC insures […]