Economics

1. If a wealthy person chooses to spend large sums of money to increase the prob

1. If a wealthy person chooses to spend large sums of money to increase the probability of surviving and ordinarily fatal disease, should the rest of society object? 2.What does i…

1. If all the oligopolists in a market collude to form a cartel, total profit fo

1. If all the oligopolists in a market collude to form a cartel, total profit for the cartel is less than that of a monopolist. A) True B) False 2. The game that monopolists play …

1. If an affluent households pay less tax, as a percentage of income, than low-i

1. If an affluent households pay less tax, as a percentage of income, than low-income households, this tax is categorized as Select one: a. Progressive b. Proportional c. Regressi…

1. If an economy comes to equilibrium at less than full employment, we refer to

1. If an economy comes to equilibrium at less than full employment, we refer to that as a _________________; if it comes to equilibrium at more that full employment, we refer to t…

1. If an industry is producing a price inelastic product, will its labor demand

1.     If an industry is producing a price inelastic product, will its labor demand curve most likely be wage elastic or wage inelastic? (b) A firm makes a product using labor and…

1. If apples have an own-price elasticity of -1.2 we know the demand is: A. Unit

1. If apples have an own-price elasticity of -1.2 we know the demand is: A. Unitary B. Indeterminate C. Elastic D. Inelastic 2. Suppose the demand for good X is lnQXd = 21 - 0.8 l…

1. If at the current output quantity , the marginal cost is below the average to

1. If at the current output quantity , the marginal cost is below the average total cost , then: a.marginal cost is decreasing b.average total cost is increasing c.average total c…

1. If average total costs for a firm equal $3000 and average variable costs equa

1. If average total costs for a firm equal $3000 and average variable costs equal $2000 when the firm produces 50 units of a good, what are its total costs? Select one: a. $3000 b…

1. If both the supply of and the demand for a good are highly elastic, a shift o

1. If both the supply of and the demand for a good are highly elastic, a shift of either curve will always result in A. a decrease in price B. an increase in price C. a large chan…

1. If countries were to trade along the lines of absolute advantage: a. More inf

1. If countries were to trade along the lines of absolute advantage: a. More information is needed. b. B would import Y from A. c. Neither country would want to trade. a. B would …

1. If country X has a much higher savings rate than country Y, which country wou

1. If country X has a much higher savings rate than country Y, which country would you expect to have a smaller multiplier and why? Country Y would have a smaller multiplier becau…

1. If external benefits are taken into account in the market the demand curve wo

1. If external benefits are taken into account in the market the demand curve would shift to the left. the supply curve would become vertical. the demand curve would shift to the …

1. If firms in a monopolistically competitive market are earning positive profit

1. If firms in a monopolistically competitive market are earning positive profits, A) firms will likely be subject to regulation. B) barriers to entry will be strengthened. C) som…

1. If increasing returns to scale exist, then an increase in all inputs of 5 per

1. If increasing returns to scale exist, then an increase in all inputs of 5 percent should: A. not affect output B. should increase output by less than 5 percent. C. should incre…

1. If inflation becomes expected, and all other things remain as they were, the

1. If inflation becomes expected, and all other things remain as they were, the yield curve would most likely become: a) steeper. b) flatter c) flat. d) vertical. 2. Suppose you a…

1. If inflation falls from 5% to 3% to 1.3% it is sometimes called A. deflation

1. If inflation falls from 5% to 3% to 1.3% it is sometimes called A. deflation B. disinflation C. reinflation D. postinflation 2. Typically the government: A. overestimates unemp…

1. If information between lender and borrower were not asymmetric, would the pro

1. If information between lender and borrower were not asymmetric, would the problem of adverse selection still exist? Could a moral hazard problem still exist? Explain. Explain h…

1. If marginal utility is positive but diminishing, then A. average utility must

1. If marginal utility is positive but diminishing, then A. average utility must be negative. B. marginal utility must be above-average utility. C. marginal utility must be more t…

1. If monopoly power is a threat to an industry that otherwise could be effcetiv

1. If monopoly power is a threat to an industry that otherwise could be effcetively served by numerous competitors, the most suitable type of policy to apply would be: A.Conversio…

1. If only part of the labor force employed by a firm can be dismissed at any ti

1. If only part of the labor force employed by a firm can be dismissed at any time without affecting the level of output, the total wages and salaries paid out by the firm must be…

1. If pollution in the in the production of fertilizer were not regulated by the

1. If pollution in the in the production of fertilizer were not regulated by the government, the market outcome would be: a) underprodution of fertilizer and a higher price b) und…

1. If rapid inflation occurs in an economy that is operating near full employmen

                    1. If rapid inflation occurs in an economy that is operating near full employment, the monetary                                      and fiscal policies that s…

1. If rapid inflation occurs in an economy that is operating near full employmen

1. If rapid inflation occurs in an economy that is operating near full employment, the monetary     and fiscal policies that should be used include     A. a government budget defi…

1. If retailers such as Wal-Mart and Target find that inventories are rapidly be

1.  If retailers such as Wal-Mart and Target find that inventories are rapidly being depleted, would it have been caused by a rightward or a leftward change in the aggregate deman…

1. If sellers expect a higher price in the near future, with no change in demand

1. If sellers expect a higher price in the near future, with no change in demand, there will be __________ in equilibrium price and __________ in equilibrium quantity. an increase…

1. If supply is relatively elastic compared to demand in an efficient market, th

1. If supply is relatively elastic compared to demand in an efficient market, then we know that a production subsidy will a. raise the welfare of the sellers by more than the welf…

1. If supply is unchanged, but demand increases, we can conclude that the new eq

1. If supply is unchanged, but demand increases, we can conclude that the new equilibrium: a. Quantity must increase but market price may fall, stay the same or even increase.    …

1. If the Bill and Melinda Gates Foundation were to buy out and destroy the pate

1. If the Bill and Melinda Gates Foundation were to buy out and destroy the patent for Combivir, which of the following would NOT be one of the effects? A. The price of Combivir w…

1. If the Fed acts to increase the money supply, a. it will sell bonds, drive bo

1. If the Fed acts to increase the money supply, a. it will sell bonds, drive bond prices up, and drive interest rates down. b. it will sell bonds, drive bond prices up, and drive…

1. If the Fed carries out an open market purchase of $2,000 with a 0.05 reserve

1. If the Fed carries out an open market purchase of $2,000 with a 0.05 reserve required ratio and excess reserves of $1,900 then the money supply A. Increases by $18,000. B. Incr…

1. If the Federal Open Market Committee (FOMC) decides to expandthe money supply

1. If the Federal Open Market Committee (FOMC) decides to expandthe money supply, then: a. it will issue directions to sell U.S. government securities,thus increasing the velocity…

1. If the Federal Reserve authorities wanted to reduce inflationary pressures, t

1. If the Federal Reserve authorities wanted to reduce inflationary pressures, the monetary policy options would be to: a. sell government securities, raise reserve requirements, …

1. If the Federal Reserve buys bonds on the open market, how are the purchases o

1. If the Federal Reserve buys bonds on the open market, how are the purchases of U.S. financial assets by foreigners and the international value of the dollar impacted? Financial…

1. If the MPC is 0.60 and there are no crowding-out or accelerator (multiplier)

1. If the MPC is 0.60 and there are no crowding-out or accelerator (multiplier) effects, then an initial increase in aggregate demand of $200 billion will eventually shift the agg…

1. If the Required Reserve Ratio is .20 and the Fed wants to increase the supply

1. If the Required Reserve Ratio is .20 and the Fed wants to increase the supply of money by $200 billion, what should the Fed do assuming that people deposit all their money and …

1. If the U.S. dollar fell sharply in value and the U.S. could no longer pay its

1. If the U.S. dollar fell sharply in value and the U.S. could no longer pay its depts to foreigners, how could the IMF be of help? In what way could the IMF have been of help pri…

1. If the United State government has to pay a slightly higher rate on its debt

1. If the United State government has to pay a slightly higher rate on its debt the risk free rate will? A. Rise greatly c. increase at risk coefficient B. Stay the same D. decrea…

1. If the United States begins importing motorcycles from Tanzania, where worker

1. If the United States begins importing motorcycles from Tanzania, where workers are paid 50 cents per day, which group is likely to be hurt the most?      A.Tanzanian motorcycle…

1. If the aggregate supply curve is steep, business firms are probably producing

1. If the aggregate supply curve is steep, business firms are probably producing near capacity. increased aggregate demand will not lead to higher prices. greater demand for labor…

1. If the amount of money in circulation is $180 billion and the value of the ec

1. If the amount of money in circulation is $180 billion and the value of the economy's total output is $540 billion, then the: A. circulation period of money must be one-fourth o…

1. If the current rate of unemployment is 3.8%, under which of the following cir

1. If the current rate of unemployment is 3.8%, under which of the following circumstances would you expect the Fed to raise rates and enact contractionary monetary policy? if the…

1. If the demand curve is perfectly elastic and a $10 per unit sales tax is impo

1. If the demand curve is perfectly elastic and a $10 per unit sales tax is imposed on the buyers then the net price received by suppliers will a. decrease by more than $10 b. dec…

1. If the demand for a product decreases and its supply increases, which of the

1. If the demand for a product decreases and its supply increases, which of the following will happen to the equilibrium price and quantity? Select one: a. Equilibrium            …

1. If the demand for product A displays high and postitive cross-price elasticit

1. If the demand for product A displays high and postitive cross-price elasticity with respect to the price of product B, then: a. the demand for product A is likely to have a low…

1. If the domestic demand curve in a small country is completely inelastic then

1. If the domestic demand curve in a small country is completely inelastic then a tariff on imports a) does not result in any deadweight losses b) results in a larger reduction in…

1. If the economy is at equilibrium at less than full employment, fiscal policy

1. If the economy is at equilibrium at less than full employment, fiscal policy would dictate that A.government should increase taxes and decrease total spending. B. government sh…

1. If the economy is at potential output and the Fed decreases the money supply

1. If the economy is at potential output and the Fed decreases the money supply so that actual output is less than potential output, eventually nominal wages will decrease. T/F 2.…

1. If the elasticity of demand curve for millet is -0.5 at all prices higher tha

1. If the elasticity of demand curve for millet is -0.5 at all prices higher than the current price, we would expect that when bad weather reduces the size of the millet crop, tot…

1. If the federal government increased spending then you could expect to see A.

1. If the federal government increased spending then you could expect to see A. a recession B. a decrease in interest rates C. a decrease in the national debt D. an increase in th…

1. If the firm is able to segment the market based on the residences of its cust

1. If the firm is able to segment the market based on the residences of its customers, it will earn producer surplus of: A. $1,800.50 B. $4,025 C. $2,680 D. $2,012.50 2. If the fi…