Economics

1.The demand for widgets, QWD, is equal to QWD = 1879 - 3*PW + 0.003*M, where PW

1.The demand for widgets, QWD, is equal to QWD = 1879 - 3*PW + 0.003*M, where PW is the price of widgets and M is consumer income. If income equals $65,000 and the price of widget…

1.The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America

1.The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does B…

1.The exchange rate value of the U.S. dollar increased recently. Is it good news

1.The exchange rate value of the U.S. dollar increased recently. Is it good news or bad news? Why? Should we worry about it? 2.The U.S. has a whopping trade deficit. Why? Should w…

1.The existence of banks: A.has no effect on the trade-off between rate of retur

1.The existence of banks: A.has no effect on the trade-off between rate of return and liquidity. B.increases the severity of the trade-off between rate of return and liquidity. C.…

1.The externalities that Jane Jacobs believes are important for successful urban

1.The externalities that Jane Jacobs believes are important for successful urban development are associated with: A.firms with some monopoly power B.localization economies C.a str…

1.The graph of a straight line contains two points, A and B. At point A on the l

1.The graph of a straight line contains two points, A and B. At point A on the line, x equals 3 and y equals 3. At point B on the line, x equals 10 and y equals 5. What is the slo…

1.The impact of hurricanes on the level of business activity in North Carolina i

1.The impact of hurricanes on the level of business activity in North Carolina is an example of a.seasonal variation b.internal force c.cyclical fluctuation d.random fluctuation 2…

1.The interest parity condition a) Equates the domestic interest rate to the for

1.The interest parity condition a) Equates the domestic interest rate to the foreign interest rate. b) Equates the domestic interest rate to the foreign to domestic currency excha…

1.The interest rate is determined by the interaction of borrowers and savers in

1.The interest rate is determined by the interaction of borrowers and savers in the loanable funds market.      True or False? (True?) 2. Changes in rent depend entirely on change…

1.The levels of profit in a cartel are a. initially high, but then decrease as s

1.The levels of profit in a cartel are a. initially high, but then decrease as substitue good emerge. b. initially low, but then decrease as the level of competition increases. c.…

1.The main difference between sales and excise taxes is that:??? a) sales taxes

1.The main difference between sales and excise taxes is that:??? a) sales taxes apply to a wide range of products, while excise taxes apply only to a select group of products. b) …

1.The market supply curve for labor curve is upward-sloping because a) As the wa

1.The market supply curve for labor curve is upward-sloping because a) As the wage rises, most workers want to work fewer hours. b)As the wage falls, most workers want to work mor…

1.The market supply curve for labor curve is upward-sloping because a) As the wa

1.The market supply curve for labor curve is upward-sloping because a) As the wage rises, most workers want to work fewer hours. b)As the wage falls, most workers want to work mor…

1.The most effective way for the government to develop a surplus as a contractio

1.The most effective way for the government to develop a surplus as a contractionary measure is to increase taxes and hold or decrease spending. True or False 2.In the past few de…

1.The opportunity cost of holding assets as money Suppose you\'ve just inherited

1.The opportunity cost of holding assets as money Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non -Interest -bea…

1.The price elasticity of demand measures how sensitive the: a.price is to a cha

1.The price elasticity of demand measures how sensitive the: a.price is to a change in the quantity supplied. b.quantity demanded is to a change in price. c.demand is to a change …

1.The primary policy goals of the United States are A. a rapid economic growth r

1.The primary policy goals of the United States are A. a rapid economic growth rate, low unemployment and price stability. B. sustainable economic growth, low unemployment and pri…

1.The production-possibilities curve illustrates: Select one: a. The limitations

1.The production-possibilities curve illustrates: Select one: a. The limitations that exist because of scarce resources. b. That there is no limit to what an economy can produce. …

1.The profitability of a bank depends on several different factors. a. Why is “G

1.The profitability of a bank depends on several different factors. a. Why is “Gap Analysis” so important to a bank?   b. What should a bank do if inflation increases?   Explain w…

1.The quantity theory of money, can be used to show what relationship between P,

1.The quantity theory of money, can be used to show what relationship between P, M and Y? a.Inverse relationship between P and M, given Y b. Inverse relationship between P and Y, …

1.The reserves of commercial banks are assets to commercial banks and liabilitie

1.The reserves of commercial banks are assets to commercial banks and liabilities of the Federal Reserve System. True or False 2.(Last Word) Which of the following best explains w…

1.The revenue for a new product that will stay in market for five years is proje

1.The revenue for a new product that will stay in market for five years is projected at $45,000 in year 1, and the revenue is expected to reduce by $5,000 per year. What is the pr…

1.The shapes of the total product and marginal product curves are related becaus

1.The shapes of the total product and marginal product curves are related because an increase in total product pulls marginal product up. marginal product gives the slope of total…

1.The slogan for MasterCard commercials typically center around the slogan, “The

1.The slogan for MasterCard commercials typically center around the slogan, “There are some things money can’t buy…” Do you agree with the premise that there are some things that …

1.The substitution effect describes the a. incentive to work more when the wages

1.The substitution effect describes the a. incentive to work more when the wages rises b. incentive to work less when the wage rises. c. decision whether to work more or less. d. …

1.The system we use to measure the value of an economy is called national income

1.The system we use to measure the value of an economy is called national income accounting. Gross domestic product is the most commonly used method of national income accounting.…

1.The term “Ad Creep” has been coined to describe the gradual expansion of adver

1.The term “Ad Creep” has been coined to describe the gradual expansion of advertising into our entire “visual field.” (T/F) (Trends) 2.Wealth is an accumulation of past income an…

1.ThegovernmentofDubaihadbeenconcernedabouttherecentexplosioninapartmentrental r

1.ThegovernmentofDubaihadbeenconcernedabouttherecentexplosioninapartmentrental ratesforlowincomefamilies.combatthisproblem,aproposalhasbeenmadetoinstituterentcontrolthatwouldplace…

1.There are hundreds of colleges and universities that serve millions of college

1.There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows stu…

1.There are hundreds of colleges and universities that serve millions of college

1.There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows stu…

1.There is a 50% chance it will sleet on December 18 and a 60% chance it will sn

1.There is a 50% chance it will sleet on December 18 and a 60% chance it will snow. The probability that it will both sleet AND snow is .25. What is the probability that there wil…

1.Think of a goods and services market for coffee. A wild fire destroys half of

1.Think of a goods and services market for coffee. A wild fire destroys half of the coffee bean crop. Which curve is affected and in what direction? What will happen to equilibriu…

1.Third-degree price discrimination occurs when a monopolist sells output to dif

1.Third-degree price discrimination occurs when a monopolist sells output to different people at different prices but every unit that an individual buys costs the same amount. Tru…

1.This year, the aggregate quantity supplied by sellers in the United States is

1.This year, the aggregate quantity supplied by sellers in the United States is $15 trillion worth of goods and services. The aggregate quantity demanded by buyers during the same…

1.To find the output at which the firm maximizes its profits you MUST know the f

1.To find the output at which the firm maximizes its profits you MUST know the firm's A. ATC                                       B. AVC C. AFC D. MC 2. To maximize profits, a fi…

1.Tuition costs for a student are expected to inflate at the rate of 8 percent p

1.Tuition costs for a student are expected to inflate at the rate of 8 percent per year. To prepare enough money for the tuition costs for the next four years, a student plans to …

1.U.S. opponents of NAFTA argue that the agreement will hurt the United States.

1.U.S. opponents of NAFTA argue that the agreement will hurt the United States. In their view, NAFTA's greatest harm will be its A)harmonization of product safety standards. B)har…

1.Voluntarism in recycling garbage A. generally has not been successful. B. work

1.Voluntarism in recycling garbage A. generally has not been successful. B. works only where there is surveillance. C. increases the cost of recycling waste. D. has worked best of…

1.We should keep the proportional tax because it creates more equity than s prog

1.We should keep the proportional tax because it creates more equity than s progressive tax and is much easier to compute 2.Making high-income and low-income taxpayers pay the sam…

1.What are examples of each generic business-level strategy in the apparel indus

1.What are examples of each generic business-level strategy in the apparel industry? 2. What are the limitations of examining firms in terms of generic strategies? 3. Create a new…

1.What are five risks common to all financial institutions? 2. Explain how econo

1.What are five risks common to all financial institutions? 2. Explain how economic transactions between household savers of funds and corporate users of funds would occur in a wo…

1.What are the objectives of the competition act in Canada? 2.Explain the margin

1.What are the objectives of the competition act in Canada? 2.Explain the marginal revenue product (MRP) for labour. 3.Explain how wage rates are determined. 4.Explain why there m…

1.What are the two characteristics that differentiate private goods from public

1.What are the two characteristics that differentiate private goods from public goods? a-Negative externality and positive externality b-Rivalry and excludability c-Marginal cost …

1.What factors led to the mortgage default crisis? 2.How did mortgage defaults a

1.What factors led to the mortgage default crisis? 2.How did mortgage defaults affect banks involved in mortgage lending and mortgage investing? 3.Securitization? TARP? What do th…

1.What is Globalization? 2.Mercantile colonialism 3.Globalization and Cities 4.G

1.What is Globalization? 2.Mercantile colonialism 3.Globalization and Cities 4.Globalization: Winners and Losers 5.Important Economic thinkers (e.g. Marx, Smith, Ricardo, etc) – w…

1.What is scarcity? Why is scarcity central to the study of economics? 2.Why doe

1.What is scarcity? Why is scarcity central to the study of economics? 2.Why does scarcity imply that every society and individual must face trade-offs? 3.What is the difference b…

1.What is the Federal Reserve (Fed) all about? 2.Who is the current Chairman of

1.What is the Federal Reserve (Fed) all about? 2.Who is the current Chairman of the Fed? 3.Should the Fed remain independent from political authority or should the President and C…

1.What is the Friedman-Schwartz hypothesis? What was the argument they put forwa

1.What is the Friedman-Schwartz hypothesis? What was the argument they put forward in their Monetary History? (Note: Theirs is not an argument about the ultimate causes of the Gre…

1.What is the amount you can withdraw at the end of 20 years if you make $1,500

1.What is the amount you can withdraw at the end of 20 years if you make $1,500 monthly deposit at a nominal annual rate of 6% compounded monthly? 2.For retirement planning, you d…

1.What is the main reason why General Motors failed while other companies like T

1.What is the main reason why General Motors failed while other companies like Toyota and Ford were able to survive the economic crisis without government assistance? Select one: …