Archives: Quiz

A tax on the buyers of coffee will a. increase the price of coffee paid by buyers, increase the net price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. decrease the price of coffee paid […]

Two goods are considered substitutes if a. a decrease in the demand for one leads to a decrease in the supply of the other. b. an increase in the demand for one leads to a decrease in the supply of […]

Which of the following is an example of a normative economic statement? a. The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices. b. The […]

Commercial banks can borrow reserves directly from the Fed at the a. prime interest rate. b. federal funds rate. c. discount rate. d. real interest rate. Which of the following was an underlying cause of the economic crisis of 2008? […]

Economic analysis indicates that growth in the size of government as a share of the economy will a. always reduce economic growth and reduce the living standards of the citizenry. b. enhance economic growth and lead to higher income levels […]

If debit cards become more widely used by consumers and businesses, which of the following is most likely to happen? a. Currency holdings will remain the same, but the M1 money supply will fall. b. The amount of currency held […]

Which of the following is true of the per person income of the West (Western Europe and its offshoots of the United States, Canada, Australia, and New Zealand) a. It has increased each century and grown steadily since 1500. b. […]

If steel workers obtain a substantial wage increase, employment in the steel industry will be most likely to fall if a. the demand curve for steel is highly inelastic. b. the demand curve for steel is highly elastic. c. the […]

Suppose the economy is initially in long-run equilibrium and aggregate demand rises. In the long run prices a. and output are higher than in the original long-run equilibrium. b. and output are lower than in the original long-run equilibrium. c. […]

When a park is funded by visitors, but not by taxpayers in general, a. there will be too few parks because most people simply will not pay to use a park. b. visitors will be better served because poor service […]

Which of the following will tend to lower the ability of a union to increase the wages of its members? a. strong competition from nonunion labor b. threat of a strike c. increased demand for union labor d. all of […]

If decreased government borrowing drives down real interest rates in the United States, a. private investment will tend to decline. b. the dollar will depreciate leading to an increase in net exports. c. an inflow of capital will cause the […]

An income tax is proportional if a. the tax liability of high-income earners exceeds the tax liability of those with low incomes. b. the tax liability of high-income earners is less than the tax liability of those with low incomes. […]

Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm’s marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. […]

When there is an abrupt increase in the rate of inflation, a. the actual rate of inflation will tend to fall below the natural rate. b. the actual rate of inflation will tend to rise above the natural rate. c. […]

Which of the following describes a situation in which demand must be inelastic? a. Total revenue decreases by 10 percent when the price of jeans rises by 10 percent. b. Total revenue decreases by less than 10 percent when the […]

Use the figure below to answer the following question(s). Figure 4-8 Refer to Figure 4-8. The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is […]

When a country allows trade and becomes an importer of steel, a. the losses of the domestic producers of steel exceed the gains of the domestic consumers of steel. b. the losses of the domestic consumers of steel exceed the […]

Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category? a. the job is widely viewed as prestigious. b. the employer provides child […]

Which of the following is most likely to reduce the nominal market wage in a job category? a. The job requires employees to work the night shift from 11 p.m. to 7 a.m. b. The job is prestigious, and the […]

If an economy is at its potential output level, which of the following is not true? a. The economy is at its full-employment output level. b. Unemployment is at the natural level. c. The price level is zero. d. The […]

The consequences of an economic change that are not immediately identifiable but are felt only with the passage of time are known in economics as a. opportunity costs. b. utility curves. c. secondary effects. d. comparative advantages. An increase in […]

In a market economy, differences in incomes will a. reflect the relative scarcity of resources. b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. do all […]

In an environment of tournament pay, it is quite likely that marginally more productive employees will receive a. less than their marginal revenue product, while less productive employees receive more than theirs. b. more than their marginal revenue product, while […]

Which of the following is true about inflation? a. It reduces the cost-of-living of the typical worker. b. It is measured by changes in the cost of a typical market basket of goods between time periods. c. It causes the […]

A good that takes up a very large percentage of the consumer’s budget will tend to have a. an elastic demand. b. a perfectly elastic demand. c. an inelastic demand. d. an upward-sloping demand curve. e. very many substitutes. The […]

Which of the following factors would be most likely to encourage capital formation in a less-developed nation? a. high and variable rates of inflation b. tariffs and quotas that restrict international trade c. a legal system that provides for secure […]

Frictional unemployment a. would be eliminated if the economy were more stable. b. would be eliminated if the minimum wage were raised. c. is the result of workers’ skills not matching the jobs available. d. is present even when labor […]

In the aggregate demand and aggregate supply model, a. the factors that cause the individual demand curve to slope downward are the same as the factors that cause the aggregate demand curve to slope downward. b. the factors that cause […]

When economists say the demand for a good is highly inelastic, they mean that a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good. b. the facilities utilized by producers of the […]

Which of the following is not consistent with the basic postulate of economics that incentives matter? a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat. b. A politician votes against a proposal […]

If the CEO of a large corporation uses the corporate jet to fly friends to the Super Bowl at company expense, this is most clearly an example of a. the duality problem. b. the violation of ceteris paribus conditions. c. […]

Why might an expansion in government spending increase the severity of the coordination problem during a recession? a. Increases in government spending will not affect the composition of aggregate demand. b. Congress is unlikely to approve increases in government spending […]

People are willing to pay more for a diamond than for a bottle of water because a. the marginal cost of producing an extra diamond far exceeds the marginal cost of producing an extra bottle of water. b. the marginal […]

A shared lock produces no conflict as long as all the concurrent transactions are read-write only. a. True b. False Conceptually, MDBMS end users visualize the stored data as a three-dimensional cube known as a__________ . a. multi-cube b. database […]

_____________transparency allows data to be updated simultaneously at several network sites. a. Transaction b. Distribution c. Failure d. Performance The DBA must supervise the installation of all software and hardware designated to support the data administration strategy. a. True b. […]

The Oracle_____________ function compares an attribute or expression with a series of values and returns an associated value or a default value if no match is found. a. NVL b. TO_CHAR c. DECODE d. CONVERT A_____________ is a logically connected […]

One of the advantages of a distributed database management system (DDBMS) is growth facilitation. a. True b. False The design of the system’s processes is completed during the___________ phase of the Systems Development Life Cycle (SDLC). a. planning b. analysis […]

Oracle 11g is an example of the____________ . a. hierarchical model b. file system data model c. relational data model d. XML/Hybrid data model Assume you are using the INTERSECT operator to combine the results from two tables with identical […]

A derived attribute is indicated in the Chen notation by a ___________that connects the attribute and an entity. a. single line b. dashed line c. double dashed line d. double line In a database context, a(n)________ indicates the use of […]

A transaction processor (TP) is the software component residing on each computer that stores and retrieves data located at the site. a. True b. False A database management system needs_____________ to prepare the data for presentation to the end user […]

Computed or derived facts, at run time, are sometimes called__________ to differentiate them from stored facts. a. schemas b. attributes c. metrics d. dimensions ____________means that data used during the execution of a transaction cannot be used by a second […]

According to Codd’s________ rule of relational database, “If the system supports lowlevel access to the data, users must not be allowed to bypass the integrity rules of the database.” a. nonsubversion b. rule zero c. view updating d. information ____________is […]

The current fully approved version of standard SQL prescribed by the ANSI is______________ . a. SQL-99 b. SQL-2003 c. SQL-4 d. SQL-07 Which of the following queries will output the table contents when the value of V_CODE is equal to […]

In the Chen and Crow’s Foot notations, an entity is represented with a rectangle containing the entity’s name. a. True b. False Which of the following is a disadvantage of the hierarchical data model? a. It does not promote data […]

A ___________occurs when there is one entity in two 1:M relationships to other entities, thus producing an association among the other entities that is not expressed in the model. a. surrogate primary key b. time-variant data c. design trap d. […]

“A password must have a minimum of five characters” is an example of a________________ . a. policy b. rule c. procedure d. standard Normalization purity is often easy to sustain in the modern database environment. a. True b. False Answer: […]

A______ index is based on 0 and 1 bits to represent a given condition. a. logical b. multidimensional c. normal d. bitmapped The database structure in a DBMS is stored as a_____________ . a. single file b. collection of files […]

Normalization is a process that is used for changing attributes to entities. a. True b. False The data cache caches system catalog data and the contents of the indexes. a. True b. False Answer: True ___________transparency is the highest level […]

Most data that can be encountered are best classified as_____________– . a. structured b. semistructured c. unstructured d. historical The entity relationship model (ERM) is dependent on the database type. a. True b. False Answer: False Business intelligence (BI) architecture […]