Please answer all mcq. I only need answers. If you can\'t answer all then no nee
ID: 1190479 • Letter: P
Question
Please answer all mcq. I only need answers. If you can't answer all then no need to answer any questions. Some other tutor should pick it up. If you did not answer all, I will not only give negative arting but get you removed off here.
· 33 Higher expected profits and business confidence ________ investment spending.
A.
decrease
B.
increase
C.
do not affect
D.
none of the above.
· 34 If the percentage change in quantity demanded is less than the percentage change in price, we would say that over this range, demand is:
A.
elastic.
B.
unit elastic.
C.
inelastic.
D.
perfectly elastic.
· 35 Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal.
A.
increase; increase
B.
increase; decrease
C.
decrease; decrease
D.
decrease; increase
· 36 The range of values in which we can be confident that the true regression coefficient lies within a given degree of probability is called a:
A.
prediction interval.
B.
confidence interval.
C.
logistic regression.
D.
none of the above.
· 37 Assume the demand for a good is price inelastic, i.e., ed < 1 (in absolute value). This means that if price decreases by 50 percent, quantity demanded will:
A.
increase by more than 50 percent.
B.
decrease by more than 50 percent.
C.
increase by less than 50 percent.
D.
decrease by less than 50 percent.
· 38 An increase in the reserve requirement would:
A.
decrease excess reserves and reflect an expansionary monetary policy.
B.
decrease excess reserves and reflect a contractionary monetary policy.
C.
increase excess reserves and reflect an expansionary monetary policy.
D.
increase excess reserves and reflect a contractionary monetary policy
· 39 Assume an analyst has been hired to estimate the price elasticity of demand for hamburger (which sells for about $2.30 per pound) and filet mignon (which sells for about $20 per pound), respectively. Considering the different determinants of the price elasticity of demand and assuming the consumers in both markets have approximately the same incomes, we would expect the coefficient of price elasticity of demand in absolute value to be:
A.
larger for hamburger than for filet mignon.
B.
larger for filet mignon than for hamburger.
C.
approximately the same for both hamburger and filet mignon.
D.
none of the above because different determinants would have opposing effects on the two estimates.
· 40 In February 2002, the euro/dollar exchange rate was 1.20, and in May 2002, the euro/dollar exchange rate was 1.10. What happened to the exchange rate during this period?
A.
Euro appreciated against the dollar.
B.
Euro depreciated against the dollar.
C.
Dollar appreciated against the euro.
D.
Both B and C.
· 41 "Demand" is best defined as the relationship between:
A.
the price of a good and the quantity consumers are willing and able to buy at each price level.
B.
the current price of a good and the quantity demanded at that price.
C.
the quantity supplied and the price people are willing to pay for a good.
D.
the amount of income someone has and the price he is willing to pay for a good.
· 42 Which of the following statements regarding cartels is not correct?
A.
Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price.
B.
Cartels restrict industry output in order to raise price.
C.
Cartels are inherently stable, because oligopolistic firms rarely change price.
D.
are easier to establish and maintain when the cost functions of the individual members are more similar to one another.
· 43 An increase in foreign real income would shift the:
A.
aggregate demand curve rightward.
B.
aggregate demand curve leftward.
C.
aggregate supply curve rightward.
D.
aggregate supply curve leftward.
· 44 If movies on DVD for home rental and movies seen at a theater are substitutes, and the price of movies seen at a theater increases, the demand for movies on DVD will:
A.
increase.
B.
stay the same.
C.
decrease.
D.
cannot be determined.
· 45 The interest rate that commercial banks charge each other for loans of reserves to meet their minimum reserve requirements is called:
A.
treasury bill rate.
B.
federal funds rate.
C.
prime interest rate.
D.
none of the above.
· 46 Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm minimizing its costs of producing 500 units of output?
A.
No, because the marginal products of the two inputs are not equal.
B.
No, because the marginal product to price ratio for the two inputs are not equal.
C.
No, because the prices of the two inputs are not equal.
D.
The answer cannot be determined without more information
· 47 Diminishing marginal returns occur when:
A.
units of a variable input are added to a fixed input and total product falls.
B.
units of a variable input are added to a fixed input and marginal product falls.
C.
the size of the plant is increased in the long run.
D.
the quantity of the fixed input is increased and returns to the variable input fall
· 48 Open market purchase will result in:
A.
increase in bank reserves and a decrease in the federal funds rate.
B.
increase in bank reserves and an increase in the federal funds rate.
C.
decrease in bank reserves and a decrease in the federal funds rate.
D.
decrease in bank reserves and an increase in the federal funds rate.
· 49 The following is a hypothetical short-run production function:
Hours of Total Marginal
Labor Output Product
0 ___ ___
1 100 100
2 ___ 80
3 240 ___
Refer to Scenario 1. What is the marginal product of the third hour of labor?
A.
60
B.
80
C.
100
D.
240
· 50 Features of the U.S. federal government expenditure and taxation programs that tend to automatically slow the economy during times of high economic activity and boost the economy during periods of recession are called:
A.
discretionary expenditures.
B.
automatic stabilizers.
C.
non-automatic stabilizers.
D.
none of the above.
· 51 Much of the empirical evidence on the behavior of costs for real-world firms suggests that:
A.
average costs functions are V-shaped as suggested by economic theory.
B.
for most firms, marginal costs are declining in the range in which the firms operate.
C.
for many firms, marginal and average variable costs are constant over wide ranges of output.
D.
there is no relationship between the marginal and average variable costs of production.
Explanation / Answer
Q Ans 33 B 34 C 35 D 36 B 37 C 38 D 39 A 40 A 41 B 42 C 43 A 44 A 45 B 46 B 47 B 48 A 49 A 50 B 51 A
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