Archives: Quiz

Aggregate Demand and Aggregate Supply 8195 54. Stagflation results from continued decreases in aggregate demand. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: ECON.MANK.15.169 – LO: 33-5 NATIONAL STANDARDS: United States – BUSPROG: Analytic TOPICS: DISC: […]

105. In Leegin Creative Leather Products v. PSKS, the Supreme Court held that minimum vertical price fixing controls (resale price maintenance) would be viewed with a rule of reason. a. True b. False 106. In Leegin Creative Leather Products v. […]

Aggregate Demand and Aggregate Supply 8175 120. According to the “In the News” article, macroprudential tools a. allow a central bank to alter lending for specific industries. b. allow a central bank to alter taxes. c. limit a central bank’s […]

65. The power-buyer defense to antitrust allegations says that a merger that increases the concentration of market power is not anticompetitive so long as purchasers are large, sophisticated, and have bargaining power. a. True b. False 66. In U.S. v. […]

Aggregate Demand and Aggregate Supply 8155 82. Which of the following would cause stagflation? a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts right d. aggregate supply shifts left ANSWER: d POINTS: 1 DIFFICULTY: Easy […]

True / False 1. One of the reasons for passing the Sherman Act was to respond to the political unpopularity of big business. a. True b. False 2. The Sherman Act was passed in response to the general unpopularity of […]

Aggregate Demand and Aggregate Supply 8135 42. Refer to Optimism. In the long run, the change in price expectations created by optimism shifts a. long–run aggregate supply right. b. long–run aggregate supply left. c. short-run aggregate supply right. d. short-run […]

295. Suppose Coca-Cola required anyone who wanted to distribute Coke products must to also purchase a new candy product that Coca–Cola manufactures. This practice would be: a. illegal per se as an exclusive dealing arrangement under the Clayton Act b. […]

Aggregate Demand and Aggregate Supply 8115 6. Which of the following would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply c. a […]

269. Monopsony power is: a. market power on the buy side of the market b. market power on the sell side of the market c. colloquially called a “seller‘s monopoly power” d. colloquially called a “distributor‘s monopoly power” e. the […]

Aggregate Demand and Aggregate Supply 8095 63. Other things the same, if the price level is lower than expected, then some firms believe that the relative price of what they produce has a. decreased, so they increase production. b. decreased, […]

216. Vertical exclusionary practices do not include: a. boycotts b. tying arrangements c. price fixing by competitors d. exclusive dealing arrangements e. all of the other choices are vertical exclusionary practices 217. When a seller will sell a product only […]

Aggregate Demand and Aggregate Supply 8075 22. A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more […]

163. In FTC v. Indiana Federation of Dentists, a dentists’ organization required its members to withhold x–rays from insurance companies. The Supreme Court held this rule: a. justified for medical privacy, and so legal b. legal for a profession such […]

Aggregate Demand and Aggregate Supply 8055 131. If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would a. rise, making aggregate demand shift right. b. rise, making aggregate […]

Aggregate Demand and Aggregate Supply 8035 91. Suppose a fall in stock prices makes people feel poorer. The decrease in wealth would induce people to a. decrease consumption, shown as a movement to the left along a given aggregate-demand curve. […]

111. A firm’s refers to the percentage of the relevant market controlled by the firm. a. market power b. profitability c. market share d. market proportion e. market control 112. A firm’s refers to the percentage of the relevant market […]

60. Which of the following is not permitted as a possible remedy in antitrust actions? a. force a company to sell a subsidiary b. force a company to let other use its patents c. restrain a company from certain business […]

Aggregate Demand and Aggregate Supply 8015 45. Other things the same, when the price level falls, interest rates a. rise, which means consumers will want to spend more on homebuilding. b. rise, which means consumers will want to spend less […]

Aggregate Demand and Aggregate Supply 7995 40. The model of aggregate demand and aggregate supply a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between […]

Multiple Choice 1. Antitrust law refers to: a. the interpretation of antitrust statues by the courts b. the antitrust statutes c. the enforcement policies of administrative agencies d. all of the other specific choices are correct e. none of the […]

Aggregate Demand and Aggregate Supply 7975 33. Which of the following is correct concerning recessions? a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large increases in investment spending. c. They are any period […]

112. The Fair Credit Billing Act holds that when consumers think there is a mistake in a credit card bill they have six months in which to notify the creditor in writing. a. True b. False 113. The Fair Credit […]

Aggregate Demand and Aggregate Supply Multiple Choice – Section 00: Introduction 1. Which of the following explains why production rises in most years? a. increases in the labor force b. increases in the capital stock c. advances in technological knowledge […]

65. In Federal Trade Commission v. John Beck Amazing Profits, where Beck was sued by the FTC for deception in the sale of his “wealth creation” products, the court held that Beck’s operation provided false materials but there was no […]

A Macroeconomic Theory of the Open Economy 7941 16. In the market for foreign-currency exchange, the source of the supply of dollars is _________. The supply curve is _________ because _____________. ANSWER: net capital outflow, vertical, net capital outflow does […]

True / False 1. The 1906 Pure Food and Drug Act provided primarily for protection against adulteration and misbranding of food and drugs. a. True b. False 2. The 1906 Pure Food and Drug Act was the first step by […]

A Macroeconomic Theory of the Open Economy 7927 42. In the long run import quotas do not affect the size of net exports. a. True b. False ANSWER: True DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.162 – LO: 32-3 NATIONAL STANDARDS: […]

315. If you lose the bank card you use to withdraw cash from your bank by machine, and you report it to the bank within two days, you are liable for how much in losses? a. $0 b. $500 c. […]

A Macroeconomic Theory of the Open Economy 7907 162. Which of the following will decrease U.S. net capital outflow? a. capital flight from the United States b. the government budget deficit increases c. the U.S. imposes import quotas d. None […]

275. Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act: a. race b. sexual orientation c. age d. religion e. all of the other specific choices are prohibited bases 276. The Federal Reserve Board […]

223. Which of the following items is not required to be disclosed by a creditor as a part of the statement given a debtor? a. service, activity, carrying and transaction charges b. loan fees and points c. fees for credit […]

A Macroeconomic Theory of the Open Economy 7887 112. A large and sudden movement of funds out of a country is called a. arbitrage. b. capital flight. c. crowding out. d. capital mobility. ANSWER: b DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: […]

A Macroeconomic Theory of the Open Economy 7867 63. Refer to Figure 32-5. Starting from 3% and .75, an increase in the government budget surplus can be illustrated as a move to a. 4% and 1 b. 4% and .5 […]

169. In Telebrands v. FTC the FTC sued a company selling an electronic muscle simulation abdominal belt, which the FTC claimed did nothing, but the good looking models in the ads implied that people using the product would become slim. […]

A Macroeconomic Theory of the Open Economy 7847 13. A decrease in the budget deficit causes domestic interest rates a. and investment to rise. b. to rise and investment to fall. c. to fall and investment to rise. d. and […]

117. In Wyeth v. Levine, where Levine sued the drug developer Wyeth for failure to warn after she lost her forearm and hand after being given a drug by IV–push, a method known to have risks, the U.S. Supreme Court: […]

A Macroeconomic Theory of the Open Economy 7827 8. In the open–economy macroeconomic model, which of the following increases net capital outflow? a. a fall in the real exchange rate, but not a fall in the real interest rate b. […]

59. Which of the following does not conform to FDA standards for food labels: a. “fresh” means the food is raw or unprocessed b. “light” means at least one-tenth fewer calories per serving than the regular serving c. “low calorie” […]

A Macroeconomic Theory of the Open Economy 7807 98. In the open-economy macroeconomic model, if net capital outflow increases then a. the demand for dollars in the market for foreign-currency exchange shifts right. b. the demand for dollars in the […]

Multiple Choice 1. The government agency charged with monitoring food and drug safety is the: a. Food and Drug Administration b. Food Safety Administration c. Food and Drug Regulation Agency d. Food and Dangerous Drug Administration e. Consumable Products Administration […]

A Macroeconomic Theory of the Open Economy 7787 47. If interest rates rise in the U.S., then other things the same a. foreigners would buy more U.S. bonds which increases the quantity of loanable funds demanded in the U.S. b. […]

113. The Supreme Court, reviewing various SEC suits against those charged with insider trading, has held that all trading based on non-public information is illegal. a. True b. False 114. SEC Rule 10b-5 is used to bring charges of insider […]

A Macroeconomic Theory of the Open Economy Multiple Choice – Section 00: Introduction 1. Over the past three decades, the United States has a. generally had, or been very near to a trade balance. b. had trade deficits in about […]

62. Under Rule 144A some U.S. and foreign securities are exempt from registration requirements for the sale of stocks and bonds. a. True b. False 63. Accredited investors often buy private placement securities through Small Corporate Offering Registration (SCORs), which […]

7750 Open-Economy Macroeconomics: Basic Concepts Problems 1. Last month a country sold more goods and services to residents of foreign countries than it purchased from them. What does this imply about this country’s trade balance? ANSWER: This country had a […]

True / False 1. A security is a written instrument that provides evidence of a debt or equity ownership. a. True b. False 2. The sale of securities is the primary source of corporate finance. a. True b. False ANSWER: […]

Open-Economy Macroeconomics: Basic Concepts 7733 33. To increase domestic investment, a country must increase its saving. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.156 – LO: 31-1 NATIONAL STANDARDS: United States – BUSPROG: Analytic […]

260. Which of the following is NOT a securities professional: a. a broker b. a dealer c. an adviser d. a scalper e. none of the other specific choices are correct 261. Which of the following is NOT a securities […]

Open-Economy Macroeconomics: Basic Concepts 7713 71. If the Kenyan nominal exchange rate declines, and prices are unchanged in Kenya and abroad, then the Kenyan real exchange rate a. does not change. b. rises. c. declines d. None of the above […]