Archives: Quiz

1) which of the following statements is correct? a.between 1953 and 2007, all growth in u.s. real gdp can be attributed to increases in labor productivity. b.between 1953 and 2007, increases in labor productivity account for more of the growth […]

1) Answer the next question(s) on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures […]

1) refer to the above diagram. constant returns to scale: a.occur over the 0q1 range of output. b.occur over the q1q3 range of output. c.begin at output q3. d.are in evidence at all output levels. 2) college students living off-campus […]

1) where total utility is at a maximum, marginal utility is: a.negative. b.positive and increasing. c.zero. d.positive but decreasing. 2) (last word) which of the following statements is false? a.stock prices are one clue as to the future direction of […]

1) the largest component of total expenditures in the united states is: a.net exports. b.government purchases. c.consumption. d.gross investment. 2) Many economists are critical of the minimum wage because they believe that it: A.hurts the efforts of labor unions. B.reduces […]

1) When commercial banks use excess reserves to buy government securities from the public: A.new money is created. B.commercial bank reserves increase. C.the money supply falls. D.checkable deposits decline. 2) a market externality refers to: a.economic costs and benefits of […]

1) the first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. therefore, the: a.marginal product of the third worker is 9. b.total product of the three workers is 54. c.average […]

1) Draw a graph that illustrates the dilemma of regulation for a natural monopoly. On the graph, show the: (a) socially optimal price; (b) fair-return price; and (c) profit-maximizing price for the unregulated monopolist. 2) The following table which indicates […]

1) Suppose the price level is fixed, the MPC is .8, and the GDP gap is a negative $320 billion. To achieve full-employment output (exactly), government should: A.increase government expenditures by $320 billion. B.increase government expenditures by $80 billion. C.reduce […]

1) refer to the above diagram. if the budget line shifts from ab to ac the: a.consumer’s level of total utility will increase. b.consumer will purchase more of both j and k c.consumer will purchase less of both j and […]

1) The following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity supplied and Qd is domestic quantity demanded. Refer to the above data. The equilibrium world price of steel must be between: A.$5 and $4. […]

1) Refer to the above diagrams. Assume that only wheat can be grown on the three grades of land shown in Figures a, b, and c. Also assume that identical amounts of labor, capital, and other needed inputs are used […]

1) Suppose a technological improvement increases the productivity of a firm’s capital and, simultaneously, its workers’ union negotiates a wage increase. We can predict that: A.the firm will use relatively more capital and relatively less labor. B.the firm will use […]

1) A “national bank holiday” that closed all banks for a week and resulted in Federal deposit insurance occurred in the United States in: A.1903, following the “Louisiana stampede.” B.1987, following the collapse of numerous savings and loan associations. C.1945, […]

1) Answer the next question(s) on the basis of the following list of assets: 1> Large ($100,000 and over) time deposits 2> Noncheckable savings deposits 3> Currency (coins and paper money) 4> Small (under $100,000) time deposits 5> Stock certificates […]

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) Economists refer to a budget deficit that exists when the economy is achieving full employment as a: A.cyclical deficit. B.full-employment deficit. C.natural deficit. D.nonrecurring deficit. 2) A profit-maximizing firm will: A.expand employment if marginal revenue product exceeds marginal resource […]

1) Suppose Ron is considering developing an asset portfolio. He expects to receive a return of 15% and is willing to take on a maximum risk premium of 8%. (a)What is if? (b)If the Fed engages in open market operations […]

1) Which of the following supports the contention that monopolistic competitors have a strong incentive to engage in R&D? A.Entry to monopolistic competitive industries is relatively easy and thus profit from innovation is quickly competed away. B.Most monopolistic competitive industries […]

1) government transfer payments: a.have been virtually eliminated by federal revenue sharing. b.have virtually no effect on the distribution of income. c.make the distribution of income less equal. d.make the distribution of income less unequal. 2) Other things equal, an […]

1) Collective bargaining agreements usually cover: A.wages and hours. B.union status. C.seniority and job opportunities. D.all of these. 2) The legal cartel theory best describes the structure and economic outcomes of the: A.automobile industry. B.deregulated airline industry. C.airline industry before […]

1) Which of the following is a tool of monetary policy? A.open market operations B.changes in banking laws C.changes in tax rates D.changes in government spending 2) Assume the legal reserve ratio is 25 percent and the Fourth National Bank […]

1) in drawing a production possibilities curve we hold constant: a.the money supply. b.the consumer price index. c.both technology and resource supplies. d.resource supplies only. 2) Which among the following is the strongest determinant of an industry’s technological progressiveness? A.the […]

1) which of the following is a supply factor in the health care market? a.defensive medicine b.the aging of the population c.slow productivity growth in the health care industry d.asymmetric information 2) A major purpose of usury laws is to […]

1) use the following table for a hypothetical single-product economy. refer to the above data. real gdp in year 3 is: a.$100. b.$450. c.$225. d.$150. 2) In which of the above market situations will the largest portion of an excise […]

1) If monies added to, or subtracted from, the Social Security trust fund were excluded from Federal budget calculations, the current Federal budget: A.deficit would nearly disappear. B.deficit would be substantially larger. C.surplus would nearly disappear. D.surplus would be substantially […]

1) Explain the impact of each of the following upon commercial bank reserves: (a) the Federal Reserve sells government bonds in the open market to private buyers; (b) the commercial banks reduce their indebtedness to the Federal Reserve Banks; (c) […]

1) Assume that the firm is hiring labor in a purely competitive market. Refer to the above data. If the wage rate is $11, how many workers will the firm choose to employ? A.5 B.4 C.3 D.2 2) a college […]

1) in the above diagram it is assumed that: a.some costs are fixed and other costs are variable. b.all costs are variable. c.the law of diminishing returns determines the shape of the cost curve. d.marginal product first falls, but ultimately […]

1) which of the following definitions is correct? a.accounting profit + economic profit = normal profit. b.economic profit – accounting profit = explicit costs. c.economic profit = accounting profit – implicit costs. d.economic profit – implicit costs = accounting profits. […]

1) Upon learning that his auto transmission is about to fail, Ray Roma sells his car to an unsuspecting buyer. This circumstance illustrates: A.asymmetric information. B.the Coase theorem. C.the moral hazard problem. D.the principal-agent problem. 2) In a private closed […]

1) Refer to the above diagram. If net exports are Xn2, the GDP in the open economy will exceed GDP in the closed economy by: A.AB. B.AD. C.FG. D.BD. 2) opportunity cost is best defined as: a.the monetary price of […]

1) The following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity supplied and Qd is domestic quantity demanded. Refer to the above data. The equilibrium prices of steel in Alpha and Beta are: A.$5 and […]

1) A craft union attempts to increase wage rates by: A.equating the MRP and the MRC curves. B.shifting the labor supply curve to the left. C.shifting the labor supply curve to the right. D.shifting the MRP curve to the right. […]

1) The equation of exchange suggests that, if the supply and velocity of money remain unchanged, an increase in the physical volume of goods and services produced will cause: A.the unemployment rate to rise. B.the Federal Reserve Banks to sell […]

1) which of the following economic regions has experienced the most growth in real gdp per capita since 1820? a.japan b.united states c.latin america d.western europe 2) Consider the following situations and determine whether they exhibit simultaneous consumption, network effects, […]

1) suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. the monopolist will produce and sell the sixth unit if its marginal cost is: a.$4 or less. […]

1) We would expect a decline in personal and corporate income taxes to: A.shift the aggregate demand curve rightward. B.decrease consumption and investment spending. C.decrease real output. D.shift the aggregate supply curve leftward. 2) a pure monopolist is selling 6 […]

1) Suppose a familys annual disposable income is $8000 of which it saves $2000. (a)What is their APC? (b)If income rises to $10,000 and they plan to save $2800, what are MPS and MPC? (c)Did the familys APC rise or […]

1) Marginal revenue product measures the: A.amount by which the extra production of one more worker increases a firm’s total revenue. B.decline in product price that a firm must accept to sell the extra output of one more worker. C.increase […]

1) (last word) the fallacy of composition is essentially the error of: a.omitting relevant variables in constructing a model. b.reasoning from the general to the particular. c.confusing cause and effect in economic relationships. d.generalizing from the particular to the general. […]

1) Refer to the above diagram for the Federal funds market. If the Fed supplies $200 billion in reserves, the equilibrium prime interest rate is: A.6.0 percent. B.5.5 percent. C.5.0 percent. D.undeterminable with the information given. 2) A deficit on […]

1) refer to the above diagrams. if $4 is firm b’s profit-maximizing price, its: a.atc must be $4. b.mc must be $4. c.mr must be $4. d.mc must be zero. 2) Other things being equal, what effect will each of […]

1) Landowners will not receive any rent so long as: A.there is any tax on land. B.the supply and demand curves for land intersect. C.the supply curve of land is perfectly inelastic. D.the supply curve lies entirely to the right […]

1) economists use the term “demand” to refer to: a.a particular price-quantity combination on a stable demand curve. b.the total amount spent on a particular commodity over a stipulated time period. c.an upsloping line on a graph that relates consumer […]

1) The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits: A.of commercial banks are unchanged, but their reserves increase. B.and reserves of commercial banks both decrease. C.of commercial banks are unchanged, but their […]

1) Suppose the reserve requirement is 20 percent. If a bank has checkable deposits of $4 million and actual reserves of $1 million, it can safely lend out: A.$1 million. B.$1.2 million. C.$200,000. D.$800,000. 2) (Advanced analysis) Answer the next […]

1) the trade adjustment assistance act of 2002: a.enacts temporary tariffs to enable firms hurt by foreign competition to transition to new industries or improve their international competitiveness. b.subsidizes firms for a maximum of 2 years as they try to […]

1) when a firm is maximizing profit it will necessarily be: a.maximizing profit per unit of output. b.maximizing the difference between total revenue and total cost. c.minimizing total cost. d.maximizing total revenue. 2) Which of the following statements is incorrect? […]

1) As of 2008, the world’s population is approximately: A.6.6 billion. B.4.2 billion. C.10.8 billion. D.2 trillion. 2) suppose you find that the price of your product is less than minimum avc. you should: a.minimize your losses by producing where […]