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The deadweight loss associated with a monopoly occurs because the monopolist: A. equates marginal revenue with marginal cost B. maximizes profits C. produces an output level less than the socially optimal level. D. produces an output level greater than the socially optimal level.

whaddup

Accumulating capital: A. involves no tradeoffs B. requires that society sacrifice consumption goods in the present C. decreases saving rates D. allows society to consume more in the present.

what

Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500, consumption equals 7,000, and government purchases equal 3,000. What are private saving and public saving? A. 1,000 and -500, respectively B. 1,500 and 500, respectively C. 1,500 and -500, respectively D. 1,000 and 500, respectively

what

For two individuals who engage in the same two productive activities, it is impossible for one of the two individuals to: A. have a comparative advantage in both activities B. have an absolute advantage in both activities C. be more productive per unit of time in both activities D. gain from trade with each other.

what activities are these 2 engaging in

Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if: A. Canada requires fewer resources than the U.S. to produce a bushel of wheat B. the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S. C. the opportunity cost of producing a bushel of wheat is lower for the U.S. than it is for Canada D. the U.S. has an absolute advantage over Canada in producing computer software.

wheat > white

An improvement in production technology will: A. decrease a firm's costs and decrease its supply B. decrease a firm's costs and increase its supply C. increase a firm's costs and decrease its supply D. increase a firm's costs and increase its supply.

who gives a sh*T

If a 25% change in price results in a 40% change in quantity supplied, then the price elasticity of supply is about: A. 1.60, and supply is inelastic B. 0.63, and supply is inelastic C. 1.60, and supply is elastic D. 0.63, and supply is elastic.

who's gonna ace their test?!?!

Which of the following equations represents GDP for an open economy? A. Y = C + I + G B. NX = I - G C. Y = C + I + G + NX D. I = Y - C + G + NX

wonder

Which of the following statements about inputs is correct? A. A forest is an example of a natural resource; it is also an example of a renewable resource. B. Human capital is a non-produced factor of production. C. Physical capital is a non-produced factor of production. D. There is no distinction between human capital and technological knowledge.

wonder

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel? A. 10 percent B. 20 percent C. 5 percent D. 30 percent

world

Refer to Figure 3-5. Which of the following movements would illustrate the effect in the market for golf balls of an increase in green fees? A. Point C to Point D B. Point C to Point B C. Point A to Point D D. Point A to Point B

C TO A FOR SURE

When the money market is drawn with the value of money on the vertical axis, an increase in the money supply shifts the money supply curve to the: A. left, raising the price level B. right, lowering the price level C. left, lowering the price level D. right, raising the price level.

M

The long-run aggregate supply curve shifts left if: A. the government removes some environmental regulations that limit production methods B. there is a natural disaster C. the capital stock increases D. None of the above is correct.

MM

Supply side economists believe that a reduction in the tax rate: A. would decrease consumption B. always decreases government tax revenue C. shifts the aggregate supply curve to the right D. provides no incentive for people to work more.

MMM

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about: A. 1 to 3 percent B. 5 to 7 percent C. 10 percent D. None of the above is correct because studies show no decrease in teenage employment.

idgaf

If sellers expect higher basket prices in the near future, the current: A. demand for baskets will decrease B. supply of baskets will decrease C. supply of baskets will increase D. supply of baskets will be unaffected.

if

Antitrust laws allow the government to: A. purchase privately-held companies through eminent domain B. break up companies C. collect revenues through the antitrust tax D. All of the above are correct.

ik i haven't had this much fun in so long!

A tax on the sellers of coffee mugs: A. increases the size of the coffee mug market B. has no effect on the size of the coffee mug market C. decreases the size of the coffee mug market D. may increase, decrease, or have no effect on the size of the coffee mug market.

im like the best friend there ever was

Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. In Tom's first year in business his total revenue equaled $150,000. Tom's explicit cost during the year totaled $85,000. What is Tom's economic profit for his first year in business? A. $20,000 B. $0 C. $85,000 D. $65,000

$0 would suck

If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price results in a A. 0.4 percent decrease in the quantity demanded B. 40 percent decrease in the quantity demanded C. 2.5 percent decrease in the quantity demanded D. 4 percent decrease in the quantity demanded.

%

Refer to Figure 7-2. If the market price is $10, what is the firm's short-run economic profit? A. $30 B. $15 C. $50 D. $9

i'm

Refer to Figure 4-2. Over which range is the supply curve in this figure the most elastic? A. $16 to $40 B. $100 to $220 C. $220 to $430 D. $40 to $100

0 to 100 ***** real quick

If a tax is levied on the sellers of a product, then the demand curve will: A. become flatter B. not shift C. shift up D. shift down.

1 2 many

Refer to Table 4-2. Using the midpoint method, at a price of $16, what is the income elasticity of demand when income rises from $5,000 to $10,000? A. 0.00 B. 1.00 C. 1.50 D. 0.50

1.25 prob

Refer to Figure 5-3. Which of the following price ceilings would be binding in this market? A. $8 B. $10 C. $12 D. $14

2, 4, 6, 8 who do we appreciate

When a factory is operating in the short run: A. total cost and variable cost are usually the same B. it cannot adjust the quantity of fixed inputs C. average fixed cost rises as output increases D. it cannot alter variable costs.

?

If the reserve ratio is 5 percent, then $1,000 of additional reserves can create up to: A. $200 of new money B. $20,000 of new money C. $2,000 of new money D. None of the above is correct.

A

Wealth is redistributed from debtors to creditors when inflation was expected to be: A. high and it turns out to be low B. low and it turns out to be low C. high and it turns out to be high D. low and it turns out to be high.

AA

In which of the following cases would the quantity of money demanded be largest? A. r = 0.04, P = 1.2 B. r = 0.03, P = 1.3 C. r = 0.03, P = 1.2 D. r = 0.05, P = 0.9

AAA

Changes in real GDP reflect: A. both changes in prices and changes in the amounts being produced B. only changes in prices C. neither changes in prices nor changes in the amounts being produced D. only changes in the amounts being produced.

ABCD

In a closed economy, if Y, C, and T remained the same, an increase in G would reduce: A. public saving but not private saving B. private saving and public saving C. private saving but not public saving D. neither private nor public saving.

ARE

Refer to Table 2-1. Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. Aruba should export: A. coolers and import radios B. radios and import coolers C. both goods and import neither good D. neither good and import both goods.

Aruba is a dick

When the Fed conducts open market sales: A. it sells Treasury securities, which increases the money supply B. it auctions term loans, which increases the money supply C. it sells Treasury securities, which decreases the money supply D. it auctions term loans, which decreases the money supply.

B

If the economy unexpectedly went from inflation to deflation: A. debtors would gain at the expense of creditors B. creditors would gain at the expense of debtors C. both debtors and creditors would have reduced real wealth D. both debtors and creditors would have increased real wealth.

BB

Other things equal, in the short run a higher price level leads households to: A. increase consumption and firms to buy fewer capital goods B. decrease consumption and firms to buy fewer capital goods C. increase consumption and firms to buy more capital goods D. decrease consumption and firms to buy more capital goods.

BBB

Refer to Table 2-3. Which of the following points would not be on Barb's production possibilities frontier, based on a 40-hour week? A. (0 computers set up, 40 computers tested) B. (8 computers set up, 32 computers tested) C. (25 computers set up, 20 computers tested) D. (30 computers set up, 16 computers tested)

Barb needs to work more hours

If marijuana were legalized, it is likely that there would be an increase in the supply of marijuana. Advocates of marijuana legalization argue that this would significantly reduce the amount of revenue going to the criminal organizations that currently supply marijuana. These advocates believe that the: A. supply for marijuana is inelastic B. demand for marijuana is inelastic C. demand for marijuana is elastic D. supply for marijuana is elastic.

Bet Vic wishes Mary j was legal

Refer to Figure 5-2. The price ceiling causes a: A. surplus of 85 units B. surplus of 40 units C. shortage of 45 units D. shortage of 85 units.

But who doesn't amirite

When the Fed decreases the discount rate, banks will: A. borrow less from the Fed and lend more to the public. The money supply increases B. borrow more from the Fed and lend less to the public. The money supply decreases C. borrow more from the Fed and lend more to the public. The money supply increases D. borrow less from the Fed and lend less to the public. The money supply decreases.

C

You bought some shares of stock and, over the next year, the price per share decreased by 7 percent and the price level decreased by 9 percent. Before taxes, you experienced: A. a nominal loss and a real gain B. a nominal gain and a real loss C. both a nominal gain and a real gain D. both a nominal loss and a real loss.

CC

In the short run, a decrease in the money supply causes interest rates to: A. decrease, and aggregate demand to shift left B. increase, and aggregate demand to shift right C. decrease, and aggregate demand to shift right D. increase, and aggregate demand to shift left.

CCC

Refer to Figure 5-6. As the figure is drawn, who sends the tax payment to the government? A. A portion of the tax payment is sent by the buyers, and the remaining portion is sent by the sellers. B. The question of who sends the tax payment cannot be determined from the graph. C. The buyers send the tax payment. D. The sellers send the tax payment.

CHS

The manager of the bank where you work tells you that the bank has $300 million in deposits and $255 million dollars in loans. If the reserve requirement is 10 percent, how much is the bank holding in excess reserves? A. $25.5 million B. $19.5 million C. $15 million D. $30 million

D

The federal funds rate is the: A. percentage of deposits that banks must hold as reserves B. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities C. interest rate at which banks lend reserves to each other overnight D. interest rate at which the Federal Reserve makes short-term loans to banks.

I

Which of the following industries is least likely to exhibit the characteristic of free entry? A. soybean farming B. selling running apparel C. restaurants D. municipal water and sewer

D

During recessions which type of spending falls? A. consumption but not investment B. consumption and investment C. investment but not consumption D. neither consumption nor investment

DD

Suppose that the Federal Reserve is concerned about the effects of rising stock prices on the economy. What could it do? A. buy bonds to raise the interest rate B. buy bonds to lower the interest rate C. sell bonds to raise the interest rate D. sell bonds to lower the interest rate

DDD

Suppose that a firm operating in a perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct? i. Marginal revenue equals $4. ii. Average revenue equals $100. iii. Total revenue equals $1,600. A. (i), (ii), and (iii) B. (i) and (iii) only C. (iii) only D. (i) only

DO

The Fed increases the reserve requirement, but it wants to offset the effects on the money supply. Which of the following should it do? A. buy bonds to decrease reserves B. sell bonds to increase reserves C. sell bonds to decrease reserves D. buy bonds to increase reserves

E

Refer to Table 2-2. Which of the following combinations of meat and potatoes could the farmer produce in 24 hours? A. 1 pound of meat and 8 pounds of potatoes B. 2 pounds of meat and 5 pounds of potatoes C. 3 pounds of meat and 12 pounds of potatoes D. 4 pounds of meat and 8 pounds of potatoes.

E!!!!

As recessions begin, production: A. falls and unemployment rises B. and unemployment both rise C. and unemployment both fall D. rises and unemployment falls.

EE

Which of the following sequences best explains the negative slope of the aggregate demand curve? A. price level ↓» demand for money ↓ » equilibrium interest rate ↓ » quantity of goods and services demanded ↑ B. price level ↑ » demand for money ↓ » equilibrium interest rate ↑ » quantity of goods and services demanded ↓ C. price level ↓ » equilibrium interest rate ↓ » demand for money ↑ » quantity of goods and services demanded ↑ D. price level ↑ » demand for money ↑ » equilibrium interest rate ↓ » quantity of goods and services demanded ↓

EEE

If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then: A. a one-unit increase in output will increase the firm's profit B. total revenue exceeds total cost C. a one-unit decrease in output will increase the firm's profit D. total cost exceeds total revenue.

Eye yi yi

During recessions, banks typically choose to hold more excess reserves relative to their deposits. This action: A. decreases the money multiplier and decreases the money supply B. does not change the money multiplier, but decreases the money supply C. does not change the money multiplier, but increases the money supply D. increases the money multiplier and increases the money supply.

F

The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning: A. the short run, but not the long run B. both the short run and the long run C. the long run, but not the short run D. neither the long run nor the short run.

FF

In the long run, fiscal policy influences: A. technology and the production function; in the short run, fiscal policy primarily influences saving, investment, and growth B. saving, investment, and growth; in the short run, fiscal policy primarily influences the aggregate demand for goods and services C. the aggregate demand for goods and services; in the short run, fiscal policy primarily influences technology and the production function D. saving, investment, and growth; in the short run, fiscal policy primarily influences technology and the production function.

FFF

Refer to Table 7-1. A firm operating in a competitive market maximizes total revenue by producing: A. 2 units B. 3 units C. 4 units D. as many units as possible.

Fricken

A problem that the Fed faces when it attempts to control the money supply is that: A. the Fed does not control the amount of money that households choose to hold as deposits in banks B. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools C. the Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount D. the 100-percent-reserve banking system in the U.S. makes it difficult for the Fed to carry out its monetary policy.

G

Refer to Figure 5-5. How is the burden of the tax shared between buyers and sellers? Buyers bear: A. two-thirds of the burden, and sellers bear one-third of the burden B. three- fourths of the burden, and sellers bear one-fourth of the burden C. one- half of the burden, and sellers bear one- half of the burden D. one- fourth of the burden, and sellers bear three-fourths of the burden.

GEAUX BEARS

Changes in the price level affect which components of aggregate demand? A. only investment B. only consumption and net exports C. only consumption and investment D. consumption, investment, and net exports

GG

Scenario 15.1. Take the following information as given for a small, imaginary economy: When income is $10,000, consumption spending is $6,500. When income is $11,000, consumption spending is $7,300. Refer to Scenario 15.1. For this economy, an initial increase of $500 in net exports translates into a: A. $2,500 increase in aggregate demand when the crowding out effect is taken into account B. $2,000 increase in aggregate demand in the absence of the crowding out effect C. $2,000 increase in aggregate demand when the crowding out effect is taken into account D. $2,500 increase in aggregate demand in the absence of the crowding out effect.

GGG

Which of the following is not a tool of monetary policy? A. reserve requirements B. changing the discount rate C. increasing the government budget deficit D. open market operations

H

Other things the same, if the price level falls, domestic interest rates: A. rise, so domestic residents will want to hold fewer foreign bonds B. fall, so domestic residents will want to hold fewer foreign bonds C. fall, so domestic residents will want to hold more foreign bonds D. rise, so domestic residents will want to hold more foreign bonds.

HH

Refer to Figure 15.1. A shift of the money demand curve from MD2 to MD1 is consistent with which of the following sets of events? A. The Federal Reserve increases the supply of money, which decreases the interest rate. B. The government cuts taxes, resulting in an increase in people's incomes. C. The government reduces government spending, resulting in a decrease in people's incomes. D. All of the above are correct.

HHH

A mutual fund: A. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit B. is funds set aside by local governments to lend to small firms who want to C. invest in projects that are mutually beneficial to the firm and community D. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds.

I

Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new mp3 player to listen to music while working out. Both the amplifier and the mp3 player cost $100, so he can only buy one. This illustrates the basic concept that: A. people respond to incentives B. rational people think at the margin C. people face trade-offs D. trade can make everyone better off.

I

Ryan plans on going to go to study engineering. What he learns about existing information increases: A. both technological knowledge and human capital B. technological knowledge but not human capital C. human capital but not technological knowledge D. neither technological knowledge nor human capital.

I

What would happen to the equilibrium price and quantity of lattés if the cost of producing steamed milk, which is used to make lattés, rises? A. Both the equilibrium price and quantity would increase. B. Both the equilibrium price and quantity would decrease. C. The equilibrium price would decrease, and the equilibrium quantity would increase. D. The equilibrium price would increase, and the equilibrium quantity would decrease.

I

Refer to Figure 1-2. Which of the following events would explain the shift of the production possibilities frontier from A to B? A. The economy's citizens developed an enhanced taste for books. B. The economy experienced a technological advance in the production of books. C. More capital became available in the economy. D. More labor became available in the economy.

I'm

Refer to Figure 3-4. The movement from Point A to Point B represents: A. a decrease in the quantity supplied B. an increase in the price C. a shift in the supply curve D. Both A and B are correct.

I'm watching the kardashians while typing these

As the price level falls: A. the exchange rate falls, so net exports fall B. the exchange rate falls, so net exports rise C. the exchange rate rises, so net exports rise D. the exchange rate rises, so net exports fall.

II

Which of the following events shifts aggregate demand rightward? A. an increase in government expenditures, but not a change in the price level B. a decrease in the price level, but not an increase in government expenditures C. a decrease in government expenditures or an increase in the price level D. an increase in government expenditures or a decrease in the price level

III

Trevor's Tire Company produced and sold 500 tires. The average cost of production per tire was $50. Each tire sold for a price of $65. Trevor's Tire Company's total profits are: A. $7,500 B. $67,500 C. $25,000 D. $32,500.

J

When the price level rises, the number of dollars needed to buy a representative basket of goods: A. increases, and so the value of money falls B. decreases, and so the value of money rises C. increases, and so the value of money rises D. decreases, and so the value of money falls.

J

A decrease in U.S. interest rates leads to: A. a depreciation of the dollar that leads to smaller net exports B. a depreciation of the dollar that leads to greater net exports C. an appreciation of the dollar that leads to greater net exports D. an appreciation of the dollar that leads to smaller net exports.

JJ

If taxes: A. increase, then consumption increases, and aggregate demand shifts rightward B. decrease, then consumption decreases, and aggregate demand shifts rightward C. increase, then consumption decreases, and aggregate demand shifts leftward D. decrease, then consumption increases, and aggregate demand shifts leftward.

JJJ

Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the A. flatter the demand curve will be B. steeper the demand curve will be C. closer to the vertical axis the demand curve will sit D. further to the right the demand curve will sit.

K

If P denotes the price of goods and services measured in terms of money, then: A. the supply of money influences the value of P, but the demand for money does not B. P can be interpreted as the inflation rate C. 1/P represents the value of money measured in terms of goods and services D. All of the above are correct.

K

Total cost is the: A. fixed cost less variable cost B. market value of the inputs a firm uses in production C. quantity of output minus the quantity of inputs used to make a good D. amount a firm receives for the sale of its output.

K

Suppose a stock market crash makes people feel poorer. This decrease in wealth would induce people to: A. increase consumption, which shifts aggregate supply right B. decrease consumption, which shifts aggregate demand left C. increase consumption, which shifts aggregate demand right D. decrease consumption, which shifts aggregate supply left.

KK

Which of the following sequences best represents the crowding out effect? A. government purchases ↓ » GDP ↓ » demand for money ↓ » equilibrium interest rate ↓ » quantity of goods and services demanded ↓ B. government purchases ↑ » GDP ↑ » demand for money ↑ » equilibrium interest rate ↑ » quantity of goods and services demanded ↓ C. taxes ↑ » GDP ↓ » demand for money ↓ » equilibrium interest rate ↑ » quantity of goods and services demanded ↓ » D. government purchases ↑ » GDP ↑ » supply of money ↓ » equilibrium interest rate ↑ » quantity of goods and services demanded ↓

KKK

A good will have a more elastic demand, the A. more broad the definition of the market B. more it is regarded as a necessity C. greater the availability of close substitutes D. shorter the period of time.

L

John has decided to start his own lawn-mowing business. To purchase the mowers and the trailer to transport the mowers, John withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is John's annual opportunity cost of the financial capital that has been invested in the business? A. $30 B. $300 C. $170 D. $140

L

When the money market is drawn with the value of money on the vertical axis, as the price level increases which of the following increases? A. the quantity of money demanded and the quantity of money supplied B. the quantity of money demanded but not the quantity of money supplied C. neither the quantity of money supplied nor the quantity of money demanded D. the quantity of money supplied but not the quantity of money demanded

L

When the money supply decreases: A. interest rates rise and so aggregate demand shifts left B. interest rates fall and so aggregate demand shifts left C. interest rates fall and so aggregate demand shifts right D. interest rates rise and so aggregate demand shifts right.

LL

Permanent tax cuts shift the AD curve: A. not as far to the left as do temporary tax cuts B. farther to the right than do temporary tax cuts C. not as far to the right as do temporary tax cuts D. farther to the left than do temporary tax cuts.

LLL

The value of the price elasticity of demand for a good will be relatively large when A. there are no good substitutes available for the good B. the time period in question is relatively short C. the good is a luxury rather than a necessity D. All of the above are correct.

M

Refer to Figure 13.1. If the money supply is MS2 and the value of money is 2, then: A. the quantity of money demanded is greater than the quantity supplied; the price level will fall B. the quantity of money supplied is greater than the quantity demanded; the price level will fall C. the quantity of money supplied is greater than the quantity demanded; the price level will rise D. the quantity of money demanded is greater than the quantity supplied; the price level will rise.

N

Suppose that quantity demand falls by 30% as a result of a 5% increase in price. The price elasticity of demand for this good is: A. elastic and equal to 6 B. inelastic and equal to 6 C. inelastic and equal to 0.17 D. elastic and equal to 0.17.

N

Other things the same, continued increases in the money supply lead to: A. continued increases in real GDP but not continued increases in the price level B. a one-time permanent increase in both prices and real GDP C. continued increases in the price level but not continued increases in real GDP D. continued increases in the price level and real GDP.

NN

Monetary policy: A. cannot be implemented quickly, but once implemented most of its impact on aggregate demand occurs very soon afterward B. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented C. can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented D. cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented.

NNN

On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store. A. The $80 is a nominal variable. The quantity of shoes is a real variable. B. Both the $80 and the quantity of shoes are real variables. C. The $80 is a real variable. The quantity of shoes is a nominal variable. D. Both the $80 and the quantity of shoes are nominal variables.

O

An increase in the expected price level shifts the: A. short run and long run aggregate supply curves left B. the long run but not the short run aggregate supply curve left C. the short run but not the long run aggregate supply curve left D. neither the long run nor the short run aggregate supply curve left.

OO

What actions could be taken to stabilize output in response to a large decrease in U.S. net exports? A. increase government expenditures or decrease the money supply B. decrease government expenditures or decrease the money supply C. decrease government expenditures or increase the money supply D. increase government expenditures or increase the money supply

OOO

The classical dichotomy refers to the idea that the supply of money: A. is irrelevant for understanding the determinants of nominal and real variables B. determines real variables, but not nominal variables C. determines nominal variables, but not real variables D. is a determinant of both real and nominal variables.

P

Which of the following shifts both short run and long run aggregate supply left? A. a decrease in the capital stock B. a decrease in the actual price level C. a decrease in the expected price level D. a decrease in the money supply

PP

Critics of stabilization policy argue that: A. policy affects aggregate demand with a lag, and the effects on aggregate demand are long lived B. policy does not affect aggregate demand C. policy affects aggregate demand with a lag, but the effects are short lived D. policy affects aggregate demand quickly, but the effects on aggregate demand are long lived.

PPP

If M = 3,000, P = 2, and Y = 12,000, what is velocity? A. 4 B. 2 C. 1/2 D. 8

Q

In which case can we be sure real GDP rises in the short run? A. foreign economies contract and taxes fall B. foreign economies expand and taxes fall C. foreign economies expand and taxes rise D. None of the above are correct.

QQ

Automatic stabilizers: A. increase the problems that lags cause in using fiscal policy as a stabilization tool B. are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession C. are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession D. All of the above are correct.

QQQ

If velocity and output were nearly constant, then: A. the inflation rate would be much higher than the money supply growth rate B. the inflation rate would be much lower than the money supply growth rate C. the inflation rate would be about the same as the money supply growth rate D. any of the above would be possible.

R

An economic contraction caused by a shift in aggregate demand remedies itself over time as the expected price level: A. rises, shifting aggregate demand left B. falls, shifting aggregate supply right C. falls, shifting aggregate supply left D. rises, shifting aggregate demand right.

RR

The evidence from hyperinflations indicates that money growth and inflation: A. are not related in a discernible fashion, which is consistent with the quantity theory of money B. are not related in a discernible fashion, which is not consistent with the quantity theory of money C. are positively related, which is consistent with the quantity theory of money D. are positively related, which is not consistent with the quantity theory of money.

S

Suppose that in a particular market, the demand curve is highly elastic, and the supply curve is highly inelastic. If a tax is imposed in this market, then the: A. buyers and sellers are likely to share the burden of the tax equally B. sellers will bear a greater burden of the tax than the buyers C. buyers will bear a greater burden of the tax than the sellers D. buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.

SJA

Refer to Figure 14.1. If the economy is in long-run equilibrium, then an adverse shift in aggregate supply would move the economy from: A. D to C B. B to A C. A to B D. C to D

SS

Refer to Figure 5-7. In which market will the majority of the tax burden fall on buyers? A. market (a) B. market (b) C. market (c) D. All of the above are correct.

STICKERS

Printing money to finance government expenditures: A. is the principal method by which the U.S. government finances its expenditures B. causes the value of money to rise C. imposes a tax on everyone who holds money D. None of the above is correct.

T

Optimism: Imagine that the economy is in long run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Refer to Optimism. In the short run what happens to the price level and real GDP? A. The price level falls and real GDP rises. B. Both the price level and real GDP rise. C. Both the price level and real GDP fall. D. The price level rises and real GDP falls.

TT

Walter puts money in a savings account at his bank earning 3.5 percent. One year later he takes his money out and notes that while his money was earning interest, prices rose 1.5 percent. Walter earned a nominal interest rate of: A. 5 percent and a real interest rate of 2 percent B. 3.5 percent and a real interest rate of 5 percent C. 3.5 percent and a real interest rate of 2 percent D. 5 percent and a real interest rate of 3.5 percent.

U

Suppose that during the Great Depression long run aggregate supply shifted left. To be consistent with what happened to the price level and output, what would have had to happen to aggregate demand? A. It would have to have shifted right by more than aggregate supply. B. It would have to have shifted left by more than aggregate supply. C. It would have to have shifted left by less than aggregate supply. D. It would have to have shifted right by less than aggregate supply.

UU

If a country experienced deflation, then: A. the real interest rate would equal the nominal interest rate B. the nominal interest rate would be greater than the real interest rate C. the real interest rate would be greater than the nominal interest rate D. None of the above is necessarily correct.

V

Policymakers who control monetary and fiscal policy and want to offset the effects on output of an economic contraction caused by a shift in aggregate supply could use policy to shift: A. aggregate demand to the right B. aggregate demand to the left C. aggregate supply to the left D. aggregate supply to the right.

VV

Shoeleather cost refers to: A. the cost of more frequent price changes induced by higher inflation B. the tendency to expend more effort searching for the lowest price when inflation is high C. resources used to maintain lower money holdings when inflation is high D. the distortion in resource allocation created by distortions in relative prices due to inflation.

W

Which of the following would cause stagflation? A. aggregate demand shifts right B. aggregate supply shifts right C. aggregate demand shifts left D. aggregate supply shifts left

WW

Which of the following is a characteristic of a competitive market? A. Firms sell differentiated products. B. Buyers and sellers are price takers. C. There are many buyers but few sellers. D. There are many barriers to entry.

Woop

When inflation rises, firms make: A. less frequent price changes. This reduces their menu costs B. more frequent price changes. This reduces their menu costs C. more frequent price changes. This raises their menu costs D. less frequent price changes. This raises their menu costs.

X

For the U.S. economy, which of the following is the most important reason for the downward slope of the aggregate demand curve? A. the interest rate effect B. the wealth effect C. the exchange rate effect D. the real wage effect

XX

Which of the following are U.S. taxpayers allowed to adjust for inflation for the purpose of income taxes? A. capital gains but not interest income B. neither interest income nor capital gains C. interest income but not capital gains D. both interest income and capital gains

Y

Refer to Figure 5-4. In this market, a minimum wage of $7.25 creates a labor: A. surplus of 4,500 workers B. surplus of 2,250 workers C. shortage of 2,250 workers D. shortage of 4,500 workers.

YAY

Suppose researchers at the University of Wisconsin discover a new vitamin that increases the milk production of dairy cows. If the demand for milk is relatively inelastic, the discovery will: A. raise both price and total revenues B. lower both price and total revenues C. raise price and lower total revenues D. lower price and raise total revenues.

YOU YOU YOU

Using the liquidity preference model, when the Federal Reserve increases the money supply: A. the long run aggregate supply curve shifts to the right B. the equilibrium interest rate decreases C. the aggregate demand curve shifts to the left D. the quantity of goods and services demanded is unchanged for a given price level.

YY

Pete owns a shoe-shine business. His accountant most likely includes which of the following costs on his financial statements? A. wages Pete could earn washing windows B. dividends Pete's money was earning in the stock market before Pete sold his stock and bought a shoe-shine booth C. the cost of shoe polish D. Both b and c are correct.

Yeah Pete does

Assume for the United States that the opportunity cost of each airplane is 100 cars. Which of these pairs of points could be on the United States' production possibilities frontier? A. (200 airplanes, 5,000 cars) and (150 airplanes, 4,000 cars) B. (200 airplanes, 10,000 cars) and (150 airplanes, 20,000 cars) C. (300 airplanes, 15,000 cars) and (200 airplanes, 25,000 cars) D. (300 airplanes, 25,000 cars) and (200 airplanes, 40,000 cars)

You're more likely to die in a car crash so go with airplanes

Given a nominal interest rate of 6 percent, in which of the following cases would you earn the lowest after-tax real rate of interest? A. Inflation is 3 percent; the tax rate is 20 percent. B. Inflation is 2 percent; the tax rate is 30 percent. C. Inflation is 4 percent; the tax rate is 5 percent. D. The after-tax real interest rate is the same for all of the above.

Z

If expected inflation is constant, then when the nominal interest rate falls, the real interest rate: A. falls by the change in the nominal interest rate B. rises by more than the change in the nominal interest rate C. falls by more than the change in the nominal interest rate D. rises by the change in the nominal interest rate.

ZZ

If the government wants to reduce smoking, it should impose a tax on: A. buyers of cigarettes B. whichever side of the market is less elastic C. sellers of cigarettes D. either buyers or sellers of cigarettes.

geaux tigers

An increase in price causes an increase in total revenue when demand is: A. unit elastic B. elastic C. inelastic D. All of the above are possible.

i was doing them one at a time

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in: A. foreign indirect investment B. indirect domestic investment C. foreign portfolio investment D. foreign direct investment.

above

Suppose roses are currently selling for $20 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a: A. shortage to exist and the market price of roses to increase B. surplus to exist and the market price of roses to increase C. shortage to exist and the market price of roses to decrease D. surplus to exist and the market price of roses to decrease.

ace

A perfectly price-discriminating monopolist is able to: A. maximize profit and produce a socially-optimal level of output B. produce a socially-optimal level of output, but not maximize profit C. exercise illegal preferences regarding the race and/or gender of its employees D. maximize profit, but not produce a socially-optimal level of output.

ah im so jealous!!

Refer to Scenario 6-1. Farmer Brown's total-cost curve is: A. increasing at a constant rate B. increasing at a decreasing rate C. increasing at an increasing rate D. decreasing.

all the above

Refer to Table 7-4. If the market price is $8, how many units of output should the firm produce to maximize profit? A. 6 units B. 7 units C. 8 units D. 5 units

almost

In the circular-flow diagram: A. the factors of production are also called "output" B. the factors of production are labor, land, and capital C. firms own the factors of production D. All of the above are correct.

answers

Penny is a piano teacher and Dan is a tile layer. If Penny teaches Dan's daughter to play the piano in exchange for Dan tiling her kitchen floor: A. only Penny is made better off by trade B. both Penny and Dan are made better off by trade C. only Dan is made better off by trade D. neither Penny nor Dan are made better off by trade.

answers

Diminishing marginal product suggests that: A. additional units of output become less costly as more output is produced B. adding additional workers will lower total cost C. marginal cost is upward sloping D. the firm is at full capacity.

are

The traditional view of the production process is that capital is subject to: A. diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries B. diminishing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries C. increasing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries D. increasing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.

are

Which of the following does the Federal Reserve not do? A. It tries to ensure the health of the banking system. B. It makes loans to any qualified business that requests one. C. It controls the supply of money. D. It acts as a lender of last resort to banks.

at

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good: A. increases as more of the good is produced B. decreases as more of the good is produced C. does not change as more of the good is produced D. may increase, decrease, or not change as more of the good is produced.

because

The profit-maximization problem for a monopolist differs from that of a competitive firm in which of the following ways? A. A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist maximizes profit at the point where marginal revenue exceeds marginal cost. B. A competitive firm maximizes profit at the point where average revenue equals marginal cost; a monopolist maximizes profit at the point where average revenue exceeds marginal cost. C. For a competitive firm, marginal revenue at the profit-maximizing level of output is equal to marginal revenue at all other levels of output; for a monopolist, marginal revenue at the profit-maximizing level of output is smaller than it is for larger levels of output. D. For a profit-maximizing competitive firm, thinking at the margin is much more important than it is for a profit-maximizing monopolist.

b/c you're weird

In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker: A. increased by 4.75 percent between 1998 and 2008 B. decreased by 1.7 percent between 1998 and 2008 C. increased by 6.25 percent between 1998 and 2008 D. remained unchanged between 1998 and 2008.

bad

Jill does not currently have a job, but has applied for several jobs in the previous week. Ken is an unpaid stay-at-home dad who has not searched for work in recent years. Who does the BLS count as out of the labor force? A. Jill but not Ken B. Ken but not Jill C. Jill and Ken D. neither Jill nor Ken

barbie and ken

A production possibilities frontier is a straight line when: A. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good B. an economy is interdependent and engaged in trade instead of self-sufficient C. the rate of tradeoff between the two goods being produced is constant D. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.

bitch

Refer to Figure 2-3. Colombia should specialize in the production of: A. coffee and import soybeans B. soybeans and import coffee C. both goods and import neither good D. neither good and import both goods.

bitch betta have my money -Rhianna

Some individuals would like to have a job, but they have given up looking for a job after an unsuccessful search. These individuals are called: A. detached workers, and they are not classified by the Bureau of Labor Statistics as unemployed B. detached workers, and they are classified by the Bureau of Labor Statistics as unemployed C. discouraged workers, and they are not classified by the Bureau of Labor Statistics as unemployed D. discouraged workers, and they are classified by the Bureau of Labor Statistics as unemployed.

black

Fiat money: A. is any close substitute for currency such as checkable deposits B. is backed by gold C. has no intrinsic value D. is a medium of exchange but not a unit of account.

blind

In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 214.5 for 2009. President Hoover's 1931 salary was equivalent to a 2009 salary of about: A. $1,140,000 B. $5,507 C. $15,525,000 D. $1,058,388.

blue

Suppose the market for loanable funds is in equilibrium. What would happen in the market for loanable funds, other things the same, if the Congress and President increased the maximum contribution limits to 401(k) and 403(b) tax-deferred retirement accounts? A. the interest rate would decrease and the quantity of loanable funds would increase B. the interest rate and quantity of loanable funds would increase C. the interest rate and quantity of loanable funds would decrease D. the interest rate would increase and the quantity of loanable funds would decrease

boat

A natural monopoly occurs when: A. there are economies of scale over the relevant range of output B. the product is sold in its natural state, such as water or diamonds C. production requires the use of free natural resources, such as water or air D. the firm is characterized by a rising marginal cost curve.

boo

A government-created monopoly arises when: A. government spending in a certain industry gives rise to monopoly power B. the government exercises its market control by encouraging competition among sellers C. the government gives a firm the exclusive right to sell some good or service D. Both a and c are correct.

both none all

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent, then by definition there is: A. search unemployment amounting to 0.5 percent of the labor force B. structural unemployment amounting to 0.5 percent of the labor force C. cyclical unemployment amounting to 0.5 percent of the labor force D. frictional unemployment amounting to 0.5 percent of the labor force.

brown

If Max experiences a decrease in his income, then we would expect Max's demand for: A. normal goods to decrease B. inferior goods to decrease C. luxury goods to increase D. each good he purchases to remain unchanged.

bruce/caitlyn

Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the: A. supply curve for toothpaste shifts to the right B. quantity supplied of toothpaste stays the same C. demand curve for toothpaste shifts to the left D. quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increases.

brush your teeth

Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of corn to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is: A. 0.36 bushel of corn B. 2.8 bushels of corn C. 14 bushels of corn D. 70 bushels of corn.

bushel is a fun word

Which of the following could be used to calculate the profit for a firm? A. Profit = (P- MC) × Q B. Profit = MR - TC C. Profit = (P - ATC) × Q D. Profit = MR - MC

but

A tax imposed on the sellers of a good will: A. lower the price buyers pay and raise the effective price sellers receive B. raise the price buyers pay and lower the effective price sellers receive C. lower both the price buyers pay and the effective price sellers receive D. raise both the price buyers pay and the effective price sellers receive.

but seriously

Suppose prices of personal computers fall significantly and consumers respond by buying more personal computers. The consumer price index: A. overstates this price decrease due to the income bias B. overstates this price decrease due to the substitution bias C. reflects this price decrease accurately D. understates this price decrease due to the substitution bias.

cancel

The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $145,000. Because of this information, in the short run, the Brookside Racquet Club should: A. stay open because shutting down would be more expensive B. stay open because the firm is making an economic profit C. shut down D. exit the industry.

clubbin

In a 100 percent-reserve banking system, if people decided to decrease the amount of currency they held by increasing the amount they held in checkable deposits, then: A. M1 would not change B. M1 would increase C. M1 might rise or fall D. M1 would decrease.

computer

Unlike minimum wage laws, wage subsidies: A. raise the living standards of the working poor without creating unemployment B. help only wealthy workers C. cause unemployment D. discourage firms from hiring the working poor.

d is for discourage

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have: A. decreased productivity and real GDP per person B. increased productivity but decreased real GDP per person C. increased productivity and real GDP per person D. increased real GDP per person, but decreased productivity.

diamond

Which of the following can eliminate the inefficiency inherent in monopoly pricing? A. regulations that force monopolies to reduce their levels of output B. price discrimination C. arbitrage D. cost-plus pricing

doing what?

Denise decides to spend three hours working overtime rather than watching a video with her friends. She earns $10 an hour. Her opportunity cost of working is: A. nothing, since she would have received less than $30 of enjoyment from the video B. the enjoyment she would have received had she watched the video C. the $30 minus the enjoyment she would have received from watching the video D. the $30 she earns working.

don't

Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? A. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. B. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. C. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. D. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

don't

Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70. What would you advise Mr. Raiman to do? A. produce more custom-made shoes B. decrease the price C. shut down the business D. produce fewer custom-made shoes

done

If the budget deficit increases then: A. saving falls and the interest rate rises B. saving rises and the interest rate falls C. saving and the interest rate rise D. saving and the interest rate falls.

down

Which of the following items is counted as part of government purchases? A. The city of Athens, Ohio pays $10,000 to a tree-trimming firm to trim trees along city boulevards. B. The state of Nebraska pays $1,000 to help a low-income family pay its medical bills. C. The federal government pays $2,000 in Social Security benefits to a retired person. D. All of the above are correct.

ending

If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins falls? A. The equilibrium price would increase, and the equilibrium quantity would decrease. B. Both the equilibrium price and quantity would increase. C. The equilibrium price would decrease, and the equilibrium quantity would increase. D. Both the equilibrium price and quantity would decrease.

final

Refer to Figure 4-1. The section of the demand curve from A to B represents the: A. inelastic section of the demand curve B. perfectly elastic section of the demand curve C. unit elastic section of the demand curve D. elastic section of the demand curve.

fml

A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. Its reserves amount to: A. $95 B. $50 C. $5 D. $950.

for

The measure of the money stock called M1 includes: A. wealth held by people in their savings accounts B. wealth held by people in their checking accounts C. wealth held by people in money market mutual funds D. everything that is included in M2 plus some additional items.

from

Which of the following is likely to have the most price elastic demand? A. ice cream B. vanilla ice cream C. frozen yogurt D. HäagenDazs® vanilla bean ice cream

froyo always

A $3 tax levied on the buyers of shoes will cause the: A. demand curve for shoes to shift up by $3 B. demand curve for shoes to shift down by $3 C. supply curve for shoes to shift up by $3 D. supply curve for shoes to shift down by $3.

geaux bears

The supply of a good will be more elastic, the: A. longer the time period being considered B. more the good is considered a luxury C. broader the definition of the market for the good D. larger the number of close substitutes for the good.

geaux matt

Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate: A. would decrease and investment would increase B. would increase and investment would decrease C. and investment both would increase D. and investment both would decrease.

gently

Money is: A. the most liquid asset and a perfect store of value B. not the most liquid asset but a perfect store of value C. neither the most liquid asset nor a perfect store of value D. the most liquid asset but an imperfect store of value.

going

Arlo is offered a job in Des Moines, where the CPI is 60, and a job in New York, where the CPI is 125. Arlo's job offer in Des Moines is for $48,000. How much does the New York job have to pay in order for the two salaries to represent the same purchasing power? A. $79,200 B. $52,000 C. $100,000 D. $23,040

green

Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because: A. with rent control, it becomes the government's responsibility to maintain rental housing B. they become resigned to the fact that many of their apartments are going to be vacant at any given time C. with rent control, the government guarantees landlords a minimum level of profit D. with shortages and waiting lists, they have no incentive to maintain and improve their property.

guh

For a construction company that builds houses, which of the following costs would be a fixed cost? A. the $30,000 per year salary paid to the company's bookkeeper B. the $2 per worker-hour paid to the state government for workers' compensation insurance C. the $20 per hour wage paid to a construction foreman D. All of the above are correct.

hey

Refer to Table 7-2. If the firm is currently producing 14 units, what would you advise the owners? A. increase quantity to 16 units B. decrease quantity to 13 units C. increase quantity to 17 units D. continue to operate at 14 units

hey

Countries that pursued outward-oriented policies in the 20th century: A. include Singapore, South Korea, and Taiwan B. experienced lower rates of economic growth than did countries that pursued inward oriented policies C. experienced higher levels of political instability than did countries that pursued inward oriented policies D. All of the above are correct.

high

In 1870, the richest country in the world was: A. the United Kingdom B. Germany C. Spain D. the United States.

hitler

Refer to Table 7-3. The firm will not produce an output level beyond: A. 4 units B. 5 units C. 7 units D. 6 units.

ho

During the 1990s, the United Kingdom experienced low levels of inflation while Turkey experienced high levels of inflation. A likely explanation of these facts is that: A. the rate of growth of the quantity of money was slower in the United Kingdom than in Turkey B. there are more instances of market power in Turkey than in the United Kingdom C. workers in Turkey are more productive than workers in the United Kingdom D. the United Kingdom has a better education system than Turkey.

hope

If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then: A. Iowa has a comparative advantage in the production of corn B. Iowa has an absolute advantage in the production of corn C. Iowa should import corn from Oklahoma D. Oklahoma should produce just enough corn to satisfy its own residents' demands.

hope you're rich after this class

Fortunade Corporation stock has a price of $100 per share, a dividend of $1.60 per share, and retained earnings of $2.00 per share. The dividend yield on this stock is: A. 1.6 percent B. 0.4 percent C. 2.8 percent D. 2.0 percent.

how

If Franco's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then: A. total costs are falling at Q = 500 B. average variable costs must be falling C. average total costs are falling at Q = 500 D. average total costs are rising at Q = 500.

how

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth? A. Differences in natural resources have virtually no role in explaining differences in standards of living. B. A country with no or few domestic natural resources is destined to be poor. C. Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living. D. Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living.

how

Monopoly firms have: A. horizontal demand curves, and they can sell as much output as they desire at the market price B. downward-sloping demand curves, and they can sell as much output as they desire at the market price C. downward-sloping demand curves, and they can sell only a limited quantity of output at each price D. horizontal demand curves, and they can sell only a limited quantity of output at each price.

i bet your fav game is monopoly huh

A monopolist's average revenue is always: A. greater than the price of its product B. equal to marginal revenue C. equal to the price of its product D. less than the price of its product.

i could see it

The most obvious benefit of specialization and trade is that they allow us to: A. work more hours per week than we otherwise would be able to work B. consume more goods than we otherwise would be able to consume C. spend more money on goods that are beneficial to society, and less money on goods that are harmful to society D. consume more goods by forcing people in other countries to consume fewer goods.

i mean its obvious

Refer to Figure 2-2. If Uzbekistan and Azerbaijan switch from each country dividing its time equally between the production of bolts and nails to each country spending all of its time producing the good in which it has a comparative advantage, then total production will increase by: A. 5 bolts and 10 nails B. 15 bolts and 40 nails C. 20 bolts and 50 nails D. 30 bolts and 80 nails.

i need to get my nails done

Suppose the cross-price elasticity of demand between hot dogs and mustard is 2.00. This implies that a 20 percent increase in the price of hot dogs will cause the quantity of mustard purchased to: A. rise by 40 percent B. fall by 40 percent C. fall by 200 percent D. rise by 200 percent.

i want to be drunk

Which of the following is true? A. Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production. B. Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. C. Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. D. Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production.

in

Refer to Figure 7-5. Assume that the market starts in equilibrium at point A in panel (b). An increase in demand from D0 to D1 will result in: A. falling prices and falling profits for existing firms in the market B. a new market equilibrium at point D C. rising prices and falling profits for existing firms in the market D. an eventual increase in the number of firms in the market and a new long-run equilibrium at point C.

is

Which of the following transactions would be included in GDP for 2010? A. In February 2010, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in April 2011. B. In February 2010, Amanda sells a 1996 Honda Accord to Isabella. C. In December 2010, Isabella eats onions that she harvested from her backyard garden in October 2010. D. All of the above are correct.

is

Tom's Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $80 for 10,000 tents. At that level of output, the firm's average total costs equal: A. $90 B. $110 C. $100 D. $80

its

Refer to Table 8.1. If the monopolist has a constant marginal cost for her product equal to $7, what is her profit-maximizing price? A. $15 B. $9 C. $6 D. $12

jail

Price discrimination is the business practice of: A. selling the same good at different prices to different customers B. hiring marketing experts to increase consumers' brand loyalty C. bundling related products to increase total sales D. pricing above marginal cost.

just having so much fun!

Refer to Figure 3-2. Which of the following would cause the demand curve to shift from Demand B to Demand C in the market for DVDs in the United States? A. a decrease in the price of DVDs B. a decrease in the number of people in the United States C. a change in consumer preferences toward watching movies in movie theaters rather than at home D. a decrease in the price of DVD players.

kendall

When the price of a good or service changes: A. the demand curve shifts in the same direction B. the demand curve shifts in the opposite direction C. the supply curve shifts in the opposite direction D. there is a movement along a given demand curve.

khloe

If a seller in a competitive market chooses to charge more than the going price, then: A. other sellers would also raise their prices B. the sellers' profits must increase C. the owners of the raw materials used in production would raise the prices for the raw materials D. buyers will make purchases from other sellers.

kim

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often difficult and sometimes impossible to: A. find articles or books that were written before 1900 B. make use of theory and observation C. conduct laboratory experiments D. rely upon the scientific method.

know

The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refreshments are served, is $37. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it: A. charged at least $37 for each of the three remaining seats B. charged at least $18.50 for each of the three remaining seats C. charged any ticket price above $0 for the three remaining seats D. paid three people to occupy the three remaining seats.

know

Refer to Figure 3-1. If Consumer A and Consumer B are the only consumers in the market, then the market quantity demanded when the price is $6 is: A. 4 units B. 8 units C. 12 units D. 6 units

kourtney

A rightward shift of a demand curve is called: A. an increase in quantity demanded B. a decrease in demand C. a decrease in quantity demanded D. an increase in demand.

kris

Refer to Figure 3-3. Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food. The other would impose a tax on all products considered to be junk food. If the warning labels are successful, we could illustrate the plan as producing a movement from: A. Point A to Point B in Panel 1 B. Point C to Point A in Panel 2 C. Point A to Point C in Panel 2 D. Point B to Point A in Panel 1.

kylie

In a competitive market with identical firms: A. firms can earn positive economic profit in the long run if the long-run market supply curve is upward sloping B. firms cannot earn positive economic profit in either the short run or long run C. an increase in demand in the short run will result in a new price above the minimum of average total cost, allowing firms to earn a positive economic profit in both the short run and the long run D. free entry and exit into the market requires that firms earn zero economic profit in the long run even though they may be able to earn positive economic profit in the short run.

lesson

Inventors often obtain patents on new products and processes, thereby turning new ideas into: A. public goods but decreasing the incentive to engage in research B. private goods and increasing the incentive to engage in research C. public goods and increasing the incentive to engage in research D. private goods but decreasing the incentive to engage in research.

like

For a given year, productivity in a particular country is most closely matched with that country's: A. level of real GDP over that year B. growth rate of real GDP per person over that year C. growth rate of real GDP divided by hours worked over that year D. level of real GDP divided by hours worked over that year.

little

Suppose that the tires of a certain tire manufacturer are discovered to be defective. Other things the same, this news would cause: A. the demand for this company's stock to decrease, so the price would rise B. the supply of this company's stock to decrease, so the price would fall C. the supply of this company's stock to decrease, so the price would rise D. the demand for this company's stock to decrease, so the price would fall.

little

If the reserve ratio increased from 10 percent to 20 percent, the money multiplier would: A. rise from 5 to 10 B. rise from 10 to 20 C. not change D. fall from 10 to 5.

long

You know an economist has crossed the line from scientist to policy adviser when he or she: A. talks about the evidence B. makes normative statements C. claims that the problem at hand is widely misunderstood by non-economists D. makes a claim about how the world is.

looking

Refer to Table 9-1. If 2005 is the base year, then the CPI for 2005 was: A. 120 B. 100 C. 83.3 D. 200.

major

Refer to Table 6-2. The marginal product of the second worker is: A. 20 units B. 85 units C. 90 units D. 80 units.

margin

Refer to Table 4.1. Which of the following is consistent with the elasticities given in Table 4.1? A. A is bicycles, and B is mopeds. B. A is airline tickets in the short run, and B is airline tickets in the long run. C. A is root beer, and B is carbonated beverages. D. A is gourmet coffee, and B is dentist's visits.

mature?

Refer to Table 6-3. The marginal cost of producing the 6th poster is: A. $3.50 B. $1.00 C. $5.00 D. $6.00.

me

The price index was 150 in the first year, 160 in the second year, and 175 in the third year. The inflation rate was about: A. 6.25 percent between the first and second years, and 8.6 percent between the second and third years B. 6.7 percent between the first and second years, and 9.4 percent between the second and third years C. 60 percent between the first and second years, and 75 percent between the second and third years D. 10 percent between the first and second years, and 15 percent between the second and third years.

me

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 table is: A. 1/5 chair for Mike and 1/3 chair for Sandy B. 1/5 chair for Mike and 3 chairs for Sandy C. 5 chairs for Mike and 1/3 chair for Sandy D. 5 chairs for Mike and 3 chairs for Sandy.

mike n sandy kissing in a tree

If the minimum wage exceeds the equilibrium wage, then: A. the minimum wage will not be binding B. the quantity demanded of labor will exceed the quantity supplied C. there will be no unemployment D. the quantity supplied of labor will exceed the quantity demanded.

minimum wage sucks

Refer to Scenario 6-2. The firm's fixed cost was: A. $28,000 B. $7,000 C. $42,000 D. $17,000.

morgan

For a market for a good or service to exist, there must be a: A. group of buyers and sellers B. specific time and place at which the good or service is traded C. high degree of organization present D. All of the above are correct.

must be a cheap ass

If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then marginal revenue of selling the eighth unit is equal to: A. $24 B. $3 C. $4 D. -$4

negative dollah

Which of the following is included in the investment component of GDP? A. spending on stocks and bonds but not spending on new residential construction B. spending on new residential construction but not spending on stocks and bonds C. spending on new residential construction and spending on stocks and bonds D. neither spending on stocks and bonds nor spending on new residential construction

never

Refer to Table 8.2. What price should the monopoly charge to maximize profit? A. $24 B. $16 C. $20 D. $28

no

Absolute advantage is found by comparing different producers': A. opportunity costs B. payments to land, labor, and capital C. input requirements per unit of output D. locational and logistical circumstances.

nobody gives a ****

If the total cost curve gets steeper as output increases, the firm is experiencing: A. economies of scale B. diminishing marginal product C. increasing marginal product D. diseconomies of scale.

none of the above

Refer to Figure 1-3. The shift of the production possibilities frontier from A to B can best be described as: A. economic growth B. an enhancement of equality C. an improvement in the allocation of resources D. a downturn in the economy.

not

Refer to Figure 7-1. The firm's short-run supply curve is its marginal cost curve above: A. $4.50 B. $1 C. $3 D. $6.30.

not

Refer to Figure 8.3. To maximize total surplus, a benevolent social planner would choose which of the following outcomes? A. 150 units of output and a price of $10 per unit B. 100 units of output and a price of $10 per unit C. 200 units of output and a price of $10 per unit D. 150 units of output and a price of $15 per unit

not much wbu?

In the long run Willie's Chocolate Factory incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, Willie's exhibits: A. economies of scale B. diseconomies of scale C. constant returns to scale D. efficient scale.

oh

Refer to Figure 8.1. If the monopoly firm wants to maximize its profit, it should operate at a level of output equal to: A. Q1 B. Q2 C. Q3 D. Q4

oh

Refer to Figure 7-3. If there are 200 identical firms in this market, what level of output will be supplied to the market when price is $1.00? A. 2,000 B. 10,000 C. 5,000 D. 20,000

on

Refer to Table 2-1. Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. Which of the following represents Aruba's production possibilities frontier when 100 labor hours are available?

one of the tables

Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10. In this situation: A. Jose's restaurant is earning a positive economic profit B. Jose's restaurant should shut down immediately C. Jose's restaurant is losing money in the short run but should continue to operate D. the market price will rise in the short run to increase profits.

only

Ms. Lane borrowed $1,000 from her bank for one year at an interest rate of 10 percent. During that year, the price level went up by 15 percent. Which of the following statements is correct? A. Ms. Lane's repayment will give the bank the same purchasing power that it originally loaned her. B. Ms. Lane's repayment will give the bank less purchasing power than it originally loaned her. C. Ms. Lane will repay the bank fewer dollars than she initially borrowed. D. Ms. Lane's repayment will give the bank greater purchasing power than it originally loaned her.

orange

International studies of the relationship between GDP per person and quality of life measures such as life expectancy and literacy rates show that larger GDP per person is associated with: A. very nearly the same life expectancy and a lower percentage of the population that is literate B. longer life expectancy and a higher percentage of the population that is literate C. longer life expectancy and a lower percentage of the population that is literate D. very nearly the same life expectancy and a higher percentage of the population that is literate.

owe

To be counted as employed in the U.S. labor force statistics a person: A. does not have to be working for pay if they are working for a family business, but must be employed full time B. must be working for pay, but does not have to be working full time C. must be working for pay and be working full time D. does not have to be working for pay if they are working for a family business and does not have to be working full time.

pink

A person who takes a prescription drug to control high cholesterol most likely has a demand for that drug that is: A. elastic B. inelastic C. highly responsive to changes in income D. unit elastic.

plastic

If the price of natural gas rises, when is the price elasticity of demand likely to be the highest? A. one year after the price increase B. immediately after the price increase C. one month after the price increase D. three months after the price increase

poop

In June 2009, the BLS reported a U.S. foreign-born population of 35.3 million. Of these, 22.7 million were employed and 1.4 million were unemployed. Based on these numbers what were the unemployment rate and the labor-force participation rate of the foreign-born U.S. population? A. 1.4/35.3 and 22.7/35.3 B. 1.4/35.3 and 24.1/35.3 C. 1.4/24.1 and 22.7/24.1 D. None of the above are correct.

purple

Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, while Sandy can make 6 tables or 18 chairs. Given this, we know that: A. Mike has an absolute advantage in chairs B. Mike has a comparative advantage in tables C. Sandy has an absolute advantage in chairs D. Sandy has a comparative advantage in chairs.

quizlet detects profanity in my terms

Refer to Figure 6-4. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory? A. ATC A B. ATC B C. ATC C D. ATC D

really

Refer to Figure 7-1. The firm will earn a negative economic profit but remain in business in the short run if the market price is: A. above $6.30 B. less than $4.50 C. above $6.30 but less than $8 D. less than $6.30 but more than $4.50.

really

A decrease in the price of domestically produced industrial robots will be reflected in: A. the GDP deflator but not in the consumer price index B. both the GDP deflator and the consumer price index C. neither the GDP deflator nor the consumer price index D. the consumer price index but not in the GDP deflator.

red

A. If there is a shortage of loanable funds, then: the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium B. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium C. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium D. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is below equilibrium.

row

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied: A. there is a surplus and the interest rate is below the equilibrium level B. there is a surplus and the interest rate is above the equilibrium level C. there is a shortage and the interest rate is below the equilibrium level D. there is a shortage and the interest rate is above the equilibrium level.

row

The slope of the demand for loanable funds curve represents the: A. positive relation between the real interest rate and investment B. negative relation between the real interest rate and saving C. positive relation between the real interest rate and saving D. negative relation between the real interest rate and investment.

row

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would: A. increase by less than $1,000 B. decrease by an indeterminate amount C. increase by more than $1,000 D. increase by exactly $1,000.

ru tipsy

Suppose you make jewelry. If the price of gold falls, then we would expect you to: A. face a greater demand for your jewelry B. face a weaker demand for your jewelry C. be willing and able to produce less jewelry than before at each possible price D. be willing and able to produce more jewelry than before at each possible price.

scott...how could i forget scott

When a profit-maximizing firm in a competitive market has zero economic profit, accounting profit: A. is also zero B. could be positive, negative or zero C. is negative D. is at least zero.

seven

Market economies are distinguished from other types of economies largely on the basis of: A. the process by which government officials are elected or appointed B. the ways in which scarce resources are allocated C. the number of retail outlets available to consumers D. the political affiliations of government officials.

shit

We associate the term debt finance with: A. the bond market, and we associate the term equity finance with the stock market B. financial intermediaries, and we associate the term equity finance with financial markets C. the stock market, and we associate the term equity finance with the bond market D. financial markets, and we associate the term equity finance with financial intermediaries.

sky

A bank has a 10 percent reserve requirement, $4,000 in deposits, and has loaned out all it can given the reserve requirement. A. It has $40 in reserves and $3,960 in loans. B. It has $444 in reserves and $3,556 in loans. C. It has $400 in reserves and $3,600 in loans. D. None of the above is correct.

so

Suppose a typical worker in India can produce 32 units of product in an eight-hour day, while a typical worker in Bangladesh can produce 30 units of product in a ten-hour day. We can conclude that: A. worker productivity in Bangladesh is higher than in India B. productivity is 4 units per hour for the worker in Bangladesh and 3 units per hour for the worker in India C. there will be no difference between the standard of living in India and Bangladesh D. the standard of living will likely be higher in India than in Bangladesh.

so

Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably: A. raise neither productivity nor real GDP per person in Eurnesia B. raise real GDP per person but not productivity in Eurnesia C. raise productivity but not real GDP per person in Eurnesia D. raise real GDP per person and productivity in Eurnesia.

so

Total output in an economy increases when each person specializes because: A. there is less competition for the same resources B. each person spends more time producing that product in which he or she has a comparative advantage C. a wider variety of products will be produced within each country due to specialization D. government necessarily plays a larger role in the economy due to specialization

special

Compared to bondholders, stockholders: A. face higher risk but receive a fixed payment B. face lower risk but receive a fixed payment C. face lower risk and have the potential for higher returns D. face higher risk and have the potential for higher returns.

star

Which of the following is human capital? A. understanding how to repair cars B. textbooks C. hand held power tools D. All of the above are correct

star

Which of the following is included in both M1 and M2? A. money market mutual funds B. small time deposits C. savings deposits D. demand deposits

staring

Which of the following functions of money is also a common function of most other financial assets? A. medium of exchange B. a store of value C. a unit of account D. None of the above is correct.

stream

The "invisible hand" directs economic activity through: A. central planning B. advertising C. prices D. government regulations.

sucks

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés cause heart attacks? A. Both the equilibrium price and quantity would increase. B. The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous. C. Both the equilibrium price and quantity would decrease. D. The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous.

swear

Refer to Figure 8.2. What price will the monopolist charge? A. A B. C C. B D. F

that's confusing

For an economist, the idea of making assumptions is regarded generally as a: A. good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand B. good idea, since doing so helps to simplify the complex world and make it easier to understand C. bad idea, since doing so invariably leads to data-collection problems C. bad idea, since doing so leads to the omission of important ideas and variables from economic models.

the

Other things the same, an increase in government expenditures with no change in taxes makes national saving: A. fall. The supply of loanable funds shifts left B. rise. The supply of loanable funds shifts right C. fall. The demand for loanable funds shifts left D. rise. The demand for loanable funds shifts right.

the

Suppose U.S. based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would: A. increase Ghanaian GNP more than it would increase Ghanaian GDP B. have no affect on either Ghanaian GDP or GNP C. not affect Ghanaian GNP, but would increase Ghanaian GDP D. increase Ghanaian GDP more than it would increase Ghanaian GNP.

the

Suppose your management professor has been offered a corporate job with a 30 percent pay increase. He has decided to take the job. For him, the marginal: A. benefit of leaving was greater than the marginal cost B. cost of leaving was greater than the marginal benefit C. benefit of teaching was greater than the marginal cost D. All of the above are correct.

the

We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that: A. Bond A has a term of 20 years and Bond B has a term of 2 years B. Bond A was issued by the city of Philadelphia and Bond B was issued by Red Hat Corporation C. the credit risk associated with Bond A is lower than the credit risk associated with Bond B D. All of the above are correct.

the

When conducting an open-market sale, the Fed: A. sells government bonds, and in so doing decreases the money supply B. buys government bonds, and in so doing decreases the money supply C. buys government bonds, and in so doing increases the money supply D. sells government bonds, and in so doing increases the money supply.

the

Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run. If an increase in the demand for minivans causes the price of minivans to increase by 5%, then the quantity supplied of minivans will increase by about: A. 1.5% in the short run and 6% in the long run B. 4.2% in the short run and 16.7% in the long run C. 16.7% in the short run and 4.2% in the long run D. 6% in the short run and 1.5% in the long run.

the thought of school makes me cry

Which of the following is an example of a positive, as opposed to normative, statement? A. Prices rise when the government prints too much money. B. When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency. C. Inflation is more harmful to the economy than unemployment is. D. If welfare payments increase, the world will be a better place

them

Refer to Figure 2-1. At which of the following prices would both Maxine and Daisy gain from trade with each other? A. 4 tarts for 2 pies B. 8 tarts for 12 pies C. 12 tarts for 28 pies D. Maxine and Daisy could not both gain from trade with each other at any price.

these names tho - maxine

GDP is defined as the: A. value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time B. value of all final goods and services produced within a country in a given period of time C. value of all goods and services produced within a country in a given period of time D. value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.

this

Refer to Figure 7-4. If the price is P2 in the short run, what will happen in the long run? A. Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry. B. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry. C. Because the price is below the firm's average variable costs, the firms will shut down. D. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry.

this

Suppose that a country that has a high average wage level agrees to trade with a country that has a low average wage level. Which country can benefit? A. neither B. only the one with a low level of output per person. C. both D. only the one with a high level of output per person.

this

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell? A. Price would fall, and the effect on quantity would be ambiguous. B. Quantity would rise, and the effect on price would be ambiguous. C. Quantity would fall, and the effect on price would be ambiguous. D. Price would rise, and the effect on quantity would be ambiguous.

this

Refer to Figure 6-3. The efficient scale of production occurs at which quantity? A B C D

today

Refer to Figure 6-1. Which of the following could explain why the total product curve would shift from TP1 to TP2? A. Labor skills have become rusty and outdated in the firm. B. There is less capital equipment available to the firm. C. The firm is now receiving a higher price for its product. D. The firm has developed improved production technology.

too many figures

Over time, housing shortages caused by rent control: A. increase, because the demand for and supply of housing are more elastic in the long run B. increase, because the demand for and supply of housing are less elastic in the long run C. decrease, because the demand for and supply of housing are more elastic in the long run D. decrease, because the demand for and supply of housing are less elastic in the long run.

too many things increase/decrease in this class

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year? A. 10 percent B. 2 percent C. 12 percent D. 4 percent

twinkle

Other things the same, which bond would you expect to pay the highest interest rate? A. a bond issued by the state of Montana B. a bond issued by Microsoft Corporation C. a bond issued by the U.S. government D. a bond issued by a new chain of Brazilian-style restaurants

twinkle

Productivity is defined as the quantity of: A. labor required to produce a nation's GDP B. labor required to produce one unit of goods and services C. goods and services produced per unit of time D. goods and services produced from each unit of labor input.

twinkle

Short-term bonds are generally: A. more risky than long-term bonds and so they feature lower interest rates B. less risky than long-term bonds and so they feature higher interest rates C. less risky than long-term bonds and so they feature lower interest rates D. more risky than long-term bonds and so they feature higher interest rates.

twinkle

Refer to Figure 8.4. If the monopoly firm perfectly price discriminates, then consumer surplus amounts to: A. $6,250 B. $1,562.50 C. $3,125 D. $0.

typing econ terms!

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade: A. Belarus should export linen to Russia B. Russia should export linen to Belarus C. trading linen would provide no net advantage to either country D. Without additional information about opportunity costs, this question cannot be answered.

u beta pay me soooo much

In the 1970s, long lines at gas stations in the United States were primarily a result of the fact that: A. Americans typically commuted long distances B. the U.S. government maintained a price ceiling on gasoline C. OPEC raised the price of crude oil in world markets D. U.S. gasoline producers raised the price of gasoline.

ugh

If an American-based firm opens and operates a new watch factory in Panama, then it is engaging in: A. foreign portfolio investment B. foreign financial investment C. foreign direct investment D. indirect foreign investment.

up

Regan grows flowers and makes ceramic vases. Jayson also grows flowers and makes ceramic vases, but Regan is better at producing both goods. In this case, trade could: A. benefit both Jayson and Regan B. benefit Jayson, but not Regan C. benefit Regan, but not Jayson D. benefit neither Jayson nor Regan.

up

Suppose the price of potato chips decreases from $1.45 to $1.25 and, as a result, the quantity of potato chips demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for potato chips in the given price range is: A. 0.64 B. 1.55 C. 1.00 D. 2.00.

wow just discovered you can import terms

Which of the following is a characteristic of a monopoly? A. free entry and exit B. low fixed costs as a portion of total costs C. barriers to entry D. declining marginal cost

yay

If the nominal interest rate is 6 percent and the rate of inflation is 4 percent, then the real interest rate is: A. −4 percent B. 8 percent C. 4 percent D. 2 percent.

yellow

Refer to Table 8.2. At the profit-maximizing price, how much profit will the monopoly earn? A. $8 B. $14 C. $12 D. $10

yes

Country A and country B are the same except country A currently has a lower level of capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then: A. output in country A increases by the same amount as in country B B. output in country A increases by less than in country B C. output in country A increases by more than in country B D. None of the above is necessarily correct.

you

Equilibrium price must increase when demand: A. decreases and supply does not change, when demand does not change and supply increases, and when demand decreases and supply increases simultaneously B. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously C. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously D. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously.

you

Fran buys 1,000 shares of stock issued by Miller Brewing. In turn, Miller uses the funds to buy new machinery for one of its breweries. A. Fran is saving; Miller is investing. B. Fran and Miller are both saving. C. Fran and Miller are both investing. D. Fran is investing; Miller is saving.

you

If nominal GDP is $12 trillion and real GDP is $10 trillion, then the GDP deflator is: A. 120, and this indicates that the price level has increased by 20 percent since the base year B. 83.33, and this indicates that the price level has increased by 83.33 percent since the base year C. 83.33, and this indicates that the price level has decreased by 16.67 percent since the base year D. 120, and this indicates that the price level has increased by 120 percent since the base year.

you

Refer to Figure 6-2. Which curve is most likely to represent marginal cost? A B C D

you

The short-run tradeoff between inflation and unemployment implies that, in the short run: A. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate B. an increase in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate C. policymakers are able to reduce the inflation rate and, at the same time, reduce the unemployment rate D. policymakers can influence the inflation rate, but not the unemployment rate.

you

If the demand for loanable funds shifts to the left, then the equilibrium interest rate: A. falls and the quantity of loanable funds rises B. rises and the quantity of loanable funds falls C. and quantity of loanable funds rise D. and quantity of loanable funds fall.

your

Since natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would: A. maximize producer surplus B. cause the monopolist to operate at a loss C. result in a less than optimal total surplus D. result in higher profits for the monopoly.

your turn