Archives: Quiz

1) elastic demand is analogous to a __________ and inelastic demand to a _________. a.normal wrench; socket wrench b.tight rubber band; loose rubber band c.ace bandage; firm rubber tie-down d.one-foot ruler; tape measure 2) The first discovery (as distinct from […]

1) The theory of rational expectations concludes that: A.the public’s expectations can influence the outcome of monetary policy, but not of fiscal policy. B.the public’s expectations can influence the outcome of fiscal policy, but not of monetary policy. C.the public’s […]

1) Use the below graphs to answer the following questions assuming the nominal GDP in the economy is given. (a)Look at graph A and suppose the supply of money increases from 100 to 200. What will be the equilibrium rate […]

1) which of the following is not considered to fall under government’s function of redistributing income? a.transfer payments b.taxation c.antimonopoly laws d.minimum wage laws 2) diminishing returns begin to occur with the hiring of the _________ unit of labor. a.first […]

1) Relative to 1800, today in the world there are: A.more people but lower per-capita consumption. B.more people but the same per-capita consumption. C.more people and higher per-capita consumption. D.the same number of people but higher per-capita consumption. 2) Refer […]

1) Stabilizing a nation’s price level and the purchasing power of its money can be achieved: A.only with fiscal policy. B.only with monetary policy. C.with both fiscal and monetary policy. D.with neither fiscal nor monetary policy. 2) Which of the […]

1) The following balance sheet for the ABC National Bank in answering the next question(s). Assume the required reserve ratio is 20 percent. Refer to the above data. If the original balance sheet was for the commercial banking system, rather […]

1) other things equal, canadian imports of u.s. goods: a.create a supply of canadian dollars in the foreign exchange market. b.create a supply of u.s. dollars in the foreign exchange market. c.reduce the demand for u.s. dollars. d.have no effect […]

1) refer to the above diagram. the slope of curve zz at point b is: a.infinity. b.zero. c.+1 d.-1 2) If actual reserves in the banking system are $40,000, excess reserves are $10,000, and checkable deposits are $240,000, then the […]

1) The demand for agricultural products is: A.relatively elastic with respect to price. B.relatively inelastic with respect to price. C.relatively elastic with respect to income. D.downward sloping to the individual farmer, but perfectly elastic to farmers as a group. 2) […]

1) refer to the above diagram. a government-set maximum permissible interest rate is best illustrated by: a.price b. b.quantity e. c.price c. d.price a. 2) refer to the above information. average total cost is: a. b. c. d. Answer: d […]

1) suppose that an economy’s labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. we could conclude that this economy’s: a.real gdp also increased by 4 percent. b.real gdp remained constant. c.production possibilities […]

1) All of the following can file antitrust charges under the Sherman Act except: A.the U.S. Justice Department. B.state attorney generals. C.injured private parties. D.the Federal Energy Regulatory Commission. 2) The demand for agricultural products rises less rapidly than income. […]

1) (Advanced analysis) Refer to the above diagram, in which C1 is the before-tax consumption schedule. The consumption schedule represented by C4 reflects: A.a progressive tax system. B.a proportional tax system. C.a regressive tax system. D.a higher MPC than is […]

1) Refer to the above data. Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $8 to $10. As a result of the wage increase, firms will hire: […]

1) The labor supply curve for a particular occupation is upsloping because: A.higher wages will be needed to attract workers from other occupations. B.lower wages will be needed to increase employment. C.higher wages will enable some workers to afford more […]

1) The Federal Reserve System: A.has the same status as the Supreme Court. B.is basically an independent agency. C.has the status of a Congressional committee. D.is an agency of the executive branch of the Federal government. 2) approximately what percentage […]

1) according to the office of immigration statistics, approximately what percentage of legal immigrants in 2007 were parents, children, siblings, or other qualified relatives of legal permanent u.s. residents? a.13 percent b.50 percent c.66 percent d.81 percent 2) Refer to […]

1) real gdp refers to: a.the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income. b.gdp data that embody changes in the price level, but not changes in physical […]

1) a group of plants that is owned and operated by a single firm and that consists of oil fields, refineries, and gasoline stations best illustrates a: a.trust. b.holding company. c.vertically integrated firm. d.multinational corporation. 2) the three basic legal […]

1) the voluntary relocation of employable migrants from low-paying nations to high-paying nations reduces: a.wage rate disparities among nations. b.business or capitalist income in the world. c.labor productivity in the world. d. total wage income in the world. 2) the […]

1) The antitrust laws are enforced by the: A.Federal Bureau of Investigation. B.Antimonopoly Court of Appeals. C.Federal Justice Department and the Federal Trade Commission. D.Department of Commerce. 2) which of the above diagrams correctly portray the demand (d) and marginal […]

1) Kodak introduced to the marketplace a digital camera which uses no film, but which takes photos that can be shown on personal computers. This is an example of: A.economies of scale. B.product innovation. C.process innovation. D.venture capital. 2) If […]

1) refer to the above diagram. at the profit-maximizing output, total variable cost is equal to: a.0ahe b.0cfe c.0bge d.abgh 2) In which of the following U.S. occupations is the rate of unionization the lowest? A.transportation workers B.teachers C.legal workers […]

1) Refer to the above information. The multiplier for this economy is: A.2. B.2.5. C.3. D.4. 2) Productivity measures: A.real output per unit of input. B.per unit production costs. C.the changes in real wealth caused by price level changes. D.the […]

1) the price elasticity of demand of a straight-line demand curve is: a.elastic in high-price ranges and inelastic on low-price ranges. b.elastic, but does not change at various points on the curve. c.inelastic, but does not change at various points […]

1) transfer payments are: a.excluded when calculating gdp because they only reflect inflation. b.excluded when calculating gdp because they do not reflect current production. c.included when calculating gdp because they are a category of investment spending. d.included when calculating gdp […]

1) refer to the above diagram for a pure monopolist. if the monopolist is unregulated, it will maximize profits by charging: a.a price above p3 and selling a quantity less than q3. b.price p3 and producing output q3. c.price p2 […]

1) Rapid population growth can be an obstacle to economic development because: A.it can translate a relatively large increase in real output into a small increase in real output per capita. B.more investment will be required to simply maintain the […]

1) if a nation’s real gdp increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, it real gdp per capita will: a.remain constant. b.fall by 6 percent. c.rise by 6 percent. d.fall […]

1) the physical import of dvd players to the united states from japan best illustrates a: a.resource flow. b.financial flow. c.trade flow. d.technology flow. 2) The U.S. income maintenance program consists of two kinds of programs. They are: A.the minimum […]

1) Professional buyers of antiques often have more information about the value of antique objects than do the sellers. This illustrates: A.the Coase theorem. B.the moral hazard problem. C.the free-rider problem. D.asymmetric information. 2) Refer to the above diagram where […]

1) refer to the above graphs. growth of production capacity is shown by the: a.shift from ab to cd. b.shift from cd to ab. c.movement away from point a and toward point b. d.movement away from point b and toward […]

1) in the depth of the great depression, the unemployment rate in the united states was about: a.15 percent. b.33 percent. c.25 percent. d.40 percent. 2) For a firm selling its product in a purely competitive market, the marginal revenue […]

1) the main characteristics of a public good are: a.nonrivalry and nonexcludability. b.nonexcludability and rising costs of production. c.nonrivalry and large external costs. d.production at constant cost and rising demand. 2) which of these groups of nations are all members […]

1) Refer to the above data. What will be the profit-maximizing selling price of the product? A.$1.40 B.$1.60 C.$1.80 D.$2.00 2) Refer to the above diagram. The change in aggregate expenditures as shown from (C + Ig + Xn1) to […]

1) the following cost data for a firm that is selling in a purely competitive market. refer to the above data. if the market price for this firm’s product is $24, it will produce: a.4 units at a loss of […]

1) “International trade” refers to: A.purchasing or selling currently produced goods or services across an international border. B.any transaction across an international border. C.any financial transaction across an international border. D.buyer or selling of preexisting assets across an international border. […]

1) the economic perspective refers to: a.macroeconomic phenomena, but not microeconomic phenomena. b.microeconomic phenomena, but not macroeconomic phenomena. c.the making of purposeful decisions in a context of marginal costs and marginal benefits. d.unlimited resources in a context of limited economic […]

1) Refer to the above table, in which the values for columns (2) through (5) are in acres. If the relevant columns are (1), (2), and (5), land rent will be: A.$0 per acre. B.$100 per acre. C.$200 per acre. […]

1) (last word) which of the following is a source of data for the consumption component of the u.s. gdp? a.the census bureau’s retail trade survey b.the census bureau’s survey of government finance c.the conference board’s index of leading indicators […]

1) if x is a normal good, a rise in money income will shift the: a.supply curve for x to the left. b.supply curve for x to the right. c.demand curve for x to the left. d.demand curve for x […]

1) A decrease in the reserve ratio increases the: A.amount of actual reserves in the banking system. B.amount of excess reserves in the banking system. C.number of government securities held by the Federal Reserve Banks. D.ratio of coins to paper […]

1) Consider the following payoff matrix in which the numbers indicate the profit in millions of dollars for a duopoly based either on a high-price or a low-price strategy. (a)What will be the result when each firm chooses a high-price […]

1) The benefits-received principle of taxation is most evident in: A.inheritance taxes. B.excise taxes on gasoline. C.the personal income tax. D.the corporate income tax. 2) A patent on a new product benefits the firm securing it by: A.limiting the direct […]

1) the state legislature has cut gigantic state university’s appropriations. gsu’s board of regents decides to increase tuition and fees to compensate for the loss of revenue. the board is assuming that the: a.demand for education at gsu is elastic. […]

1) the following production possibilities tables for countries alpha and beta: refer to the above tables. the domestic opportunity cost of one unit of x in beta is: a.2 units of y b.4 units of y c.1 unit of y […]

1) The Federal government has a large public debt that it finances through borrowing. As a result, real interest rates are higher than otherwise and the volume of private investment spending is lower. This illustrates the: A.equation-of-exchange effect. B.paradox of […]

1) (Last Word) In recent years: A.significant changes in the price of oil have had much less effect on the U.S. economy than did similar changes in oil prices in previous decades. B.large increases in the price of oil have […]

1) Which of the following explains why the aggregate demand schedule is downward sloping? A.the real-balances effect B.the interest-rate effect C.the foreign purchases effect D.all of these 2) when total product is diminishing, marginal product is: a.positive and increasing. b.positive […]