Test 1 Chapter 1-4. Name
|
|
- Julianna Robertson
- 7 years ago
- Views:
Transcription
1 Test 1 Chapter 1-4 Name You may not discuss this test in any way shape or form with anyone before 1500 Thursday, February 3, MULTIPLE CHOICE. Circle the one alternative that best completes the statement or answers the question. 1) Scarcity exists because A) some individuals have low income. B) people take too much leisure time. C) human wants exceed the resources available to satisfy them. D) the costs of production are high. E) some people make bad economic decisions. Topic: Scarcity 2) Economics is best defined as A) the study of choice. B) a physical science. C) the study of money. D) the study of international businesses and the decisions they make. E) the study of the stock market. Topic: Definition of economics 3) Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of A) what goods will be produced. B) for whom will goods be produced. C) why will the goods be produced. D) when will the goods be produced. E) how will the goods be produced. Topic: Economic questions, how 4) An opportunity cost is A) another term for all the sunk costs. B) anything the decision maker believes costs to be. C) the benefits of the highest-valued alternative forgone. D) the dollar amount that is paid. E) whatever is paid out and cannot be reduced or reversed. Topic: Opportunity cost 5) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming A) just the second hamburger. B) the two previous hamburgers. C) just the third hamburger. D) all three hamburgers. E) the third hamburger minus the pleasure from consuming zero hamburgers. Topic: Marginal benefit 1
2 6) To make a rational choice, a person A) takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs. B) compares the extra benefits of one more unit to the extra costs of one more unit. C) adds the total benefits to determine if the total is large enough. D) adds the total costs to determine if the total is small enough. Topic: Making rational choices 7) Macroeconomics is the study of A) national or global economies. B) the actions of individual businesses. C) the government. D) how ceteris paribus affects causation. E) the actions of individual consumers. Topic: Macroeconomics 8) Positive statements are statements about A) what ought to be. B) what is. C) how scarcity can be whipped. D) profits. E) political controversies. Topic: Positive statement 9) The difference between consumption and capital goods is that A) capital goods are provided by the government. B) capital goods are used to produce additional goods while consumption goods are not. C) it is illegal to export capital goods. D) consumption goods can be enjoyed by many people at the same time. Topic: Consumption and capital goods 10) paid for the use of land; paid for the services of labor; and paid for the use of capital. A) Rent is; interest is; wages are B) Mortgages are; interest is; wages are C) Rent is; wages are; interest is D) Rent is; wages are; profit is E) Interest is; wages are; profit is Topic: Resource payments 11) Which factor of production earns the largest share of income? A) capital B) entrepreneurship C) labor D) land E) financial capital Topic: Functional distribution of income 2
3 12) When the total U.S. production of goods and services is divided into consumption goods and services, capital goods, government goods and services, and export goods and services, the largest component is A) export goods and services. B) consumption goods and services. C) capital goods and government goods and services tie for the largest component. D) capital goods. E) government goods and services. Topic: What we produce 13) the owners of the factors of production, while what amounts of those factors to hire. A) Households are; the government determines B) Firms are; the government determines C) Firms are; households determine D) The government is; firms determine E) Households are; firms determine Topic: Households vs. firms 14) Of the following, the largest amount of the federal government's expenditure is for A) interest payments on the national debt. B) transfers to state and local governments. C) national defense. D) Medicare/Social Security. E) corporate income taxes. Topic: Federal government 15) A market is defined as A) a place where money is exchanged for goods. B) the physical place where goods are sold. C) the physical place where goods and services are sold. D) any arrangement that brings buyers and sellers together. E) another name for a store such as a grocery store. Topic: Markets 16) Compared to the developing economies, the advanced economies have human capital and physical capital. A) less; less B) the same; the same C) less; more D) more; less E) more; more Topic: Advanced economies 3
4 17) Which point in the figure above is an attainable combination that would have unemployed resources? A) point A B) point B C) point C D) point D E) point A and point B Topic: Attainable points, unemployment 18) On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of bananas? A) 2 pounds of bananas B) 0.5 a pound of apples C) 2 pounds of apples D) 12/5 = 2.4 pounds of apples E) 200 pounds of apples Topic: Opportunity cost 4
5 Possibility Bread (number) Books (number) A B C D E , ) The table above shows the production possibilities for an economy. Drawing a PPF with books on the vertical axis and bread on the horizontal axis, a movement from possibility B to possibility C to possibility D shows the opportunity cost of moving down along the PPF. A) bread decreasing B) bread increases C) books and bread are both increasing D) books is constant E) books decreasing Topic: Increasing opportunity cost 20) The opportunity cost of economic growth is A) the decrease in the current production of productive factors. B) a slower accumulation of human capital. C) the increase in the nation's capital stock and/or its technology. D) the decrease in the current production of consumption goods. E) 0, because it means an expansion of production possibilities. Topic: Economic growth, opportunity cost 21) John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore, A) John cannot benefit from trade with Allen. B) John has an absolute advantage in pizza. C) John has a comparative advantage in pizza. D) Allen cannot benefit from trade with John. E) Allen has a comparative advantage in pizza. Topic: Comparative advantage 5
6 22) Deb and Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes. Which of the following statements is correct? A) Pete has an absolute advantage in both assembling packets and stuffing envelopes. B) Deb has a comparative advantage in both assembling packets and stuffing envelopes. C) Deb has an absolute advantage in both assembling packets and stuffing envelopes. D) Deb has a comparative advantage in stuffing envelopes. E) Deb has a comparative advantage in assembling packets. Topic: Comparative advantage Suppose the United States has 100 million hours of labor available to produce music CDs and textiles, and India has 300 million hours available. In the United States, it takes 2 hours of labor to produce a square yard of textiles and 4 hours to produce a music CD. In India, it takes 3 hours to produce a square yard of textiles and 15 hours to produce a music CD. 23) In the scenario above, the U.S. has a comparative advantage in A) textiles, because it takes less time to produce a square yard of textiles than to produce a music CD in the U.S. B) music CDs, because the opportunity cost of a music CD in the U.S. is lower than in India. C) neither music CDs nor textiles, because India has more labor than the U.S. to produce both these goods. D) both music CDs and textiles, because the U.S. is more productive than India in producing both these goods. E) neither music CDs nor textiles, because it is cheaper to produce both these goods in India than in the U.S. Topic: Achieving the gains from trade 6
7 24) Which of the following events will increase the quantity demanded of bottled water? A) a rise in the price of bottled water B) an increase in the number of buyers of bottled water C) a rise in the price of a fitness club membership D) a fall in the price of bottled water E) a fall in the price of soda Topic: Change in Quantity demanded 25) Which of the following increases the demand for a good? A) the expectation that future income will be higher B) a decrease in the number of buyers C) a rise in the price of a complement D) a fall in the price of a substitute Topic: Changes in demand, expectations 26) Consumers eat salsa with taco chips. The price of salsa rises. How does the increase in the price of salsa affect the demand for taco chips? A) It has no effect on the demand for taco chips. B) It increases the demand for taco chips. C) It decreases the demand for taco chips. Topic: Changes in demand, price of a complement 7
8 27) The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters? A) a rise in the expected future price of a sweater B) an increase in the number of sellers of sweaters C) a rise in the wage rate paid to the workers who make sweaters D) a rise in the price of a sweater Topic: Changes in supply, number of sellers Price (dollars per cellular phone) Quantity demanded (thousands) Quantity supplied (thousands) ) Using the data in the table above, the equilibrium quantity and equilibrium price for a cellular telephone is A) 50,000 and $100. B) 80,000 and $80. C) 40,000 and $20. D) 100,000 and $20. E) 60,000 and $50. Topic: Market equilibrium 8
9 Price (dollars per stapler) Quantity demanded (thousands of staplers per week) Quantity supplied (thousands of staplers per week) ) Using the data in the table above, if the price of a stapler is $5, then there is a of staplers and the quantity of staplers demanded the quantity of staplers supplied. A) surplus; is greater than B) neither a surplus nor a shortage; equals C) shortage; is less than D) surplus; is less than E) shortage; is greater than Topic: Shortage ) If a market begins in equilibrium and then the demand curve shifts leftward, a A) surplus is created, which is eliminated by a rise in price. B) shortage is created, which is eliminated by a fall in price. C) surplus is created, which is eliminated by the supply curve shifting leftward. D) shortage is created, which is eliminated by a rise in price. E) surplus is created, which is eliminated by a fall in price. Topic: Effects of a decrease in demand 31) For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips? A) There is no change in the equilibrium price of taco chips and the equilibrium quantity increases. B) The equilibrium price of taco chips falls and the equilibrium quantity decreases. C) The equilibrium price of taco chips rises and the equilibrium quantity increases. D) The equilibrium price of taco chips rises and the equilibrium quantity decreases. E) The equilibrium price of taco chips could rise, fall, or stay the same and the equilibrium quantity increases. Topic: Effects of a decrease in demand 9
10 32) The graph illustrates the market for bottled water. If the producers of bottled water switch to using improved technology, then the A) quantity demanded of bottled water increases. B) price of bottled water rises. C) supply curve shifts leftward. D) supply of bottled water decreases. E) quantity demanded of bottled water does not change. Topic: Effects of an increase in supply 10
11 33) The graph illustrates the market for computers. If the number of buyers of computers increases and technology advances, you predict that the A) equilibrium quantity of computers will increase. B) equilibrium quantity of computers will decrease. C) equilibrium price of a computer will fall. D) equilibrium quantity of computers might increase, decrease, or not change. E) equilibrium price of a computer will rise. Topic: Effects of an increase in demand and an increase in supply 11
12 Answer Key Testname: SPRING2011TEST1 1) C 2) A 3) E 4) C 5) C 6) B 7) A 8) B 9) B 10) C 11) C 12) B 13) E 14) D 15) D 16) E 17) C 18) C 19) B 20) D 21) C 22) D 23) B 24) D 25) A 26) C 27) B 28) E 29) E 30) E 31) B 32) A 33) A 12
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 11 Perfect Competition - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Perfect competition is an industry with A) a
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 201 Practice Test 1 Professor V. Tremblay MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Scarcity can best be defined as a situation in which:
More informationDemand, Supply, and Market Equilibrium
3 Demand, Supply, and Market Equilibrium The price of vanilla is bouncing. A kilogram (2.2 pounds) of vanilla beans sold for $50 in 2000, but by 2003 the price had risen to $500 per kilogram. The price
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 2 The Economic Problem Test Bank MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The production possibilities frontier A) refers to the
More informationDEMAND AND SUPPLY. Chapter. Markets and Prices. Demand. C) the price of a hot dog minus the price of a hamburger.
Chapter 3 DEMAND AND SUPPLY Markets and Prices Topic: Price and Opportunity Cost 1) A relative price is A) the slope of the demand curve B) the difference between one price and another C) the slope of
More informationA. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.
1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 6 - Markets in Action - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The short-run impact of the San Francisco earthquake
More informationPAGE 1. Econ 2113 - Test 2 Fall 2003 Dr. Rupp. Multiple Choice. 1. The price elasticity of demand measures
PAGE 1 Econ 2113 - Test 2 Fall 2003 Dr. Rupp Multiple Choice 1. The price elasticity of demand measures a. how responsive buyers are to a change in income. b. how responsive sellers are to a change in
More informationBPE_MIC1 Microeconomics 1 Fall Semester 2011
Masaryk University - Brno Department of Economics Faculty of Economics and Administration BPE_MIC1 Microeconomics 1 Fall Semester 2011 Final Exam - 05.12.2011, 9:00-10:30 a.m. Test A Guidelines and Rules:
More informationThe Economic Problem: Scarcity and Choice. What is Production?
The Economic Problem: Scarcity and Choice #1 What is Production? Production is the process by which resources are transformed into useful forms. Resources, or inputs, refer to anything provided by nature
More informationDouglas, Spring 2008 February 21, 2008 PLEDGE: I have neither given nor received unauthorized help on this exam.
, Spring 2008 February 21, 2008 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Midterm 1 1. What will happen to the equilibrium price of hamburgers
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Firms that survive in the long run are usually those that A) remain small. B) strive for the largest
More information4 THE MARKET FORCES OF SUPPLY AND DEMAND
4 THE MARKET FORCES OF SUPPLY AND DEMAND IN THIS CHAPTER YOU WILL Learn what a competitive market is Examine what determines the demand for a good in a competitive market Chapter Overview Examine what
More information8 THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL* * Chapter Key Ideas. Outline
C h a p t e r 8 THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL* * Chapter Key Ideas Outline Our Economy s Anchor A. The economy is like a boat on a rolling sea. Potential GDP provides an anchor for
More informationCHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY
CHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY Learning goals of this chapter: What forces bring persistent and rapid expansion of real GDP? What causes inflation? Why do we have business cycles? How
More informationManagerial Economics Prof. Trupti Mishra S.J.M. School of Management Indian Institute of Technology, Bombay. Lecture - 13 Consumer Behaviour (Contd )
(Refer Slide Time: 00:28) Managerial Economics Prof. Trupti Mishra S.J.M. School of Management Indian Institute of Technology, Bombay Lecture - 13 Consumer Behaviour (Contd ) We will continue our discussion
More informationMICROECONOMIC PRINCIPLES SPRING 2001 MIDTERM ONE -- Answers. February 16, 2001. Table One Labor Hours Needed to Make 1 Pounds Produced in 20 Hours
MICROECONOMIC PRINCIPLES SPRING 1 MIDTERM ONE -- Answers February 1, 1 Multiple Choice. ( points each) Circle the correct response and write one or two sentences to explain your choice. Use graphs as appropriate.
More informationPre Test Chapter 3. 8.. DVD players and DVDs are: A. complementary goods. B. substitute goods. C. independent goods. D. inferior goods.
1. Graphically, the market demand curve is: A. steeper than any individual demand curve that is part of it. B. greater than the sum of the individual demand curves. C. the horizontal sum of individual
More informationProblem Set #5-Key. Economics 305-Intermediate Microeconomic Theory
Problem Set #5-Key Sonoma State University Economics 305-Intermediate Microeconomic Theory Dr Cuellar (1) Suppose that you are paying your for your own education and that your college tuition is $200 per
More informationProblems: Table 1: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2
Problems: Table 1: Labor Hours needed to make one Amount produced in 90 hours: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2 1. Refer to Table 1. For Carolyn, the opportunity cost of 1
More informationThis file includes the answers to the problems at the end of Chapters 1, 2, 3, and 5 and 6.
This file includes the answers to the problems at the end of Chapters 1, 2, 3, and 5 and 6. Chapter One 1. The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)
More informationPrinciple of Microeconomics Econ 202-506 chapter 6
Principle of Microeconomics Econ 202-506 chapter 6 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The buyers pay the entire sales tax levied on
More informationECN 221 Chapter 5 practice problems This is not due for a grade
ECN 221 Chapter 5 practice problems This is not due for a grade 1. Assume the price of pizza is $2.00 and the price of Beer is $1.00 and that at your current levels of consumption, the Marginal Utility
More informationTHE ECONOMY AT FULL EMPLOYMENT. Objectives. Production and Jobs. Objectives. Real GDP and Employment. Real GDP and Employment CHAPTER
THE ECONOMY AT 29 FULL EMPLOYMENT CHAPTER Objectives After studying this chapter, you will able to Describe the relationship between the quantity of labour employed and real GDP Explain what determines
More informationPotential GDP and Economic Growth
Potential GDP and Economic Growth CHAPTER17 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you will be able to 1 Explain the forces that determine potential GDP and
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
HW1 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Production efficiency is achieved when A) the ability is gained to produce goods and services
More informationAnswers to the Problems Chapter 3
Answers to the Problems Chapter 3 1. a. ½ pound of wool trades for 1 pound of butter trades. b. Butter is 40 a pound. c. Yes, many people would accept Mr. Gregg s offer. People could use $1.60 to buy 8
More informationEcon 202 Final Exam. Table 3-1 Labor Hours Needed to Make 1 Pound of: Meat Potatoes Farmer 8 2 Rancher 4 5
Econ 202 Final Exam 1. If inflation expectations rise, the short-run Phillips curve shifts a. right, so that at any inflation rate unemployment is higher. b. left, so that at any inflation rate unemployment
More information11 PERFECT COMPETITION. Chapter. Competition
Chapter 11 PERFECT COMPETITION Competition Topic: Perfect Competition 1) Perfect competition is an industry with A) a few firms producing identical goods B) a few firms producing goods that differ somewhat
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chapter 3 - Demand and Supply - Sample Questions Answers are at the end fo this file MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A relative
More informationChapter 14 Monopoly. 14.1 Monopoly and How It Arises
Chapter 14 Monopoly 14.1 Monopoly and How It Arises 1) One of the requirements for a monopoly is that A) products are high priced. B) there are several close substitutes for the product. C) there is a
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationCHAPTER 1: LIMITS, ALTERNATIVES, AND CHOICES
CHAPTER 1: LIMITS, ALTERNATIVES, AND CHOICES Introduction At the heart of the study of economics is the simple but very real prospect that we cannot have it all. We have too few resources to meet all of
More informationExam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption.
Exam 1 Review 1. Macroeconomics does not try to answer the question of: A) why do some countries experience rapid growth. B) what is the rate of return on education. C) why do some countries have high
More informationDemand. See the Practical #4A Help Sheet for instructions and examples on graphing a demand schedule.
Demand Definition of Demand: Demand is a relation that shows the quantities that buyers are willing and able to purchase at alternative prices during a given time period, all other things remaining the
More informationMicroeconomics Topic 3: Understand how various factors shift supply or demand and understand the consequences for equilibrium price and quantity.
Microeconomics Topic 3: Understand how various factors shift supply or demand and understand the consequences for equilibrium price and quantity. Reference: Gregory Mankiw s rinciples of Microeconomics,
More informationEcon 202 Section 2 Midterm 1
Douglas, Fall 2009 September 29, 2009 A: Special Code 0000 21 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Midterm 1 1. What will happen
More informationChapter 6 Competitive Markets
Chapter 6 Competitive Markets After reading Chapter 6, COMPETITIVE MARKETS, you should be able to: List and explain the characteristics of Perfect Competition and Monopolistic Competition Explain why a
More information1. According to Figure 1.1, what is the opportunity cost of increasing consumer output from OF to OD?
Solutions to Problem set 1 (chp 1 Q1-7 / chp 3 Q3-7) 28 possible points Chapter 1 1. According to Figure 1.1, what is the opportunity cost of increasing consumer output from OF to OD? In figure 1.1, the
More informationExtra Problems #3. ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma. Notice:
ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #3 Notice: (1) There are 25 multiple-choice problems covering Chapter 6, 9, 10, 11. These problems are not homework and
More informationDemand and Supply Examples
and Examples Review Price Floors and Ceilings keep market price from allocating scarce goods. Using demand and supply to predict changes in prices and quantities. Shifts in the demand schedule Shifts in
More informationStudy Questions for Chapter 9 (Answer Sheet)
DEREE COLLEGE DEPARTMENT OF ECONOMICS EC 1101 PRINCIPLES OF ECONOMICS II FALL SEMESTER 2002 M-W-F 13:00-13:50 Dr. Andreas Kontoleon Office hours: Contact: a.kontoleon@ucl.ac.uk Wednesdays 15:00-17:00 Study
More informationThe Central Idea CHAPTER 1 CHAPTER OVERVIEW CHAPTER REVIEW
CHAPTER 1 The Central Idea CHAPTER OVERVIEW Economic interactions involve scarcity and choice. Time and income are limited, and people choose among alternatives every day. In this chapter, we study the
More informationChapter 6 Economic Growth
Chapter 6 Economic Growth 1 The Basics of Economic Growth 1) The best definition for economic growth is A) a sustained expansion of production possibilities measured as the increase in real GDP over a
More informationUTILITY AND DEMAND. Chapter. Household Consumption Choices
Chapter 7 UTILITY AND DEMAND Household Consumption Choices Topic: Consumption Possibilities 1) The level of utility a consumer can achieve is limited by A) prices only. B) income only. C) the consumer
More informationEconomics 100 Exam 2
Name: 1. During the long run: Economics 100 Exam 2 A. Output is limited because of the law of diminishing returns B. The scale of operations cannot be changed C. The firm must decide how to use the current
More informationHouseholds Wages, profit, interest, rent = $750. Factor markets. Wages, profit, interest, rent = $750
KrugmanMacro_SM_Ch07.qxp 11/9/05 4:47 PM Page 87 Tracking the Macroeconomy 1. Below is a simplified circular-flow diagram for the economy of Micronia. a. What is the value of GDP in Micronia? b. What is
More informationTopic 4: Different approaches to GDP
Topic 4: Different approaches to GDP PRINCIPLES OF MACROECONOMICS Dr. Fidel Gonzalez Department of Economics and Intl. Business Sam Houston State University Three different approaches to measure the GDP
More information6. In general, over longer periods, demand tends to become (A) More elastic (B) Perfectly elastic (C) Perfectly inelastic (D) Less elastic
5. The demand for a good is said to be inelastic if (A) More units will be purchased if price increases (B) The percentage change in quantity demanded is greater than the percentage in price (C) The demand
More informationChapter 3 Market Demand, Supply and Elasticity
Chapter 3 Market Demand, Supply and Elasticity Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. Ceteris paribus means (a) other things
More informationChapter 4 Supply and Demand Macroeconomics In Context (Goodwin, et al.)
Chapter 4 Supply and Demand Macroeconomics In Context (Goodwin, et al.) Chapter Overview In this chapter, you ll find the basics of supply and demand analysis. As you work through this chapter, you will
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The law of demand states that, other things remaining the same, the lower the price of a good,
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Study Questions 6 (Foreign Exchange Markets) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The currency used to buy imported goods is 1) A) the
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Survey of Microeconomics, Quiz #1 Fall 2006 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A relative price is A) the number of dollars that
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Hint: draw graphs in the margins to check your answers. And remember that an increase in
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Multiple choice review questions for Midterm 2 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A consumption point inside the budget line A) is
More informationUnit 4: Measuring GDP and Prices
Unit 4: Measuring GDP and Prices ECO 120 Global Macroeconomics 1 1.1 Reading Reading Module 10 - pages 106-110 Module 11 1.2 Goals Goals Specific Goals: Understand how to measure a country s output. Learn
More informationAggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D.
Aggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D. Aggregate Demand and Aggregate Supply Economic fluctuations, also called business cycles, are movements of GDP away from potential
More informationEcon 2113 Test #1A Pledge: I have neither given or received aid on this exam. Signature:
Econ 2113 Test #1A Dr. Rupp Fall 2009 Name: Pledge: I have neither given or received aid on this exam. Signature: Multiple Choice Identify the letter of the choice that best completes the statement or
More informationCONCEPT OF MACROECONOMICS
CONCEPT OF MACROECONOMICS Macroeconomics is the branch of economics that studies economic aggregates (grand totals):e.g. the overall level of prices, output and employment in the economy. If you want to
More informationThe Circular Flow of Income and Expenditure
The Circular Flow of Income and Expenditure Imports HOUSEHOLDS Savings Taxation Govt Exp OTHER ECONOMIES GOVERNMENT FINANCIAL INSTITUTIONS Factor Incomes Taxation Govt Exp Consumer Exp Exports FIRMS Capital
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 111 Summer 2007 Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The classical dichotomy allows us to explore economic growth
More informationChapter 13. Aggregate Demand and Aggregate Supply Analysis
Chapter 13. Aggregate Demand and Aggregate Supply Analysis Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics In the short run, real GDP and
More informationEcon 202 H01 Final Exam Spring 2005
Econ202Final Spring 2005 1 Econ 202 H01 Final Exam Spring 2005 1. Which of the following tends to reduce the size of a shift in aggregate demand? a. the multiplier effect b. the crowding-out effect c.
More informationEconomics 212 Principles of Macroeconomics Study Guide. David L. Kelly
Economics 212 Principles of Macroeconomics Study Guide David L. Kelly Department of Economics University of Miami Box 248126 Coral Gables, FL 33134 dkelly@miami.edu First Version: Spring, 2006 Current
More informationLABOR UNIONS. Appendix. Key Concepts
Appendix LABOR UNION Key Concepts Market Power in the Labor Market A labor union is an organized group of workers that aims to increase wages and influence other job conditions. Craft union a group of
More informationECON 3312 Macroeconomics Exam 3 Fall 2014. Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
ECON 3312 Macroeconomics Exam 3 Fall 2014 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Everything else held constant, an increase in net
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationEconomics 101 Multiple Choice Questions for Final Examination Miller
Economics 101 Multiple Choice Questions for Final Examination Miller PLEASE DO NOT WRITE ON THIS EXAMINATION FORM. 1. Which of the following statements is correct? a. Real GDP is the total market value
More informationThe Data of Macroeconomics
CHAPTER 2 The Data of Macroeconomics Modified for ECON 2204 by Bob Murphy 2016 Worth Publishers, all rights reserved IN THIS CHAPTER, YOU WILL LEARN:... the meaning and measurement of the most important
More information7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Chapter. Key Concepts
Chapter 7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Key Concepts Aggregate Supply The aggregate production function shows that the quantity of real GDP (Y ) supplied depends on the quantity of labor (L ),
More information2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E. The College Board. College Level Examination Program
2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E College Level Examination Program The College Board Principles of Macroeconomics Description of the Examination The Subject Examination in
More informationPRINCIPLES OF ECONOMICS. Tomáš Hanák hanak.t@fce.vutbr.cz
PRINCIPLES OF ECONOMICS Tomáš Hanák hanak.t@fce.vutbr.cz Course Curriculum Economics basic terms and relations Financial markets Principles of macroeconomic theory Macroeconomic policy Products and services
More informationANSWERS TO END-OF-CHAPTER QUESTIONS
ANSWERS TO END-OF-CHAPTER QUESTIONS 9-1 Explain what relationships are shown by (a) the consumption schedule, (b) the saving schedule, (c) the investment-demand curve, and (d) the investment schedule.
More information13. If Y = AK 0.5 L 0.5 and A, K, and L are all 100, the marginal product of capital is: A) 50. B) 100. C) 200. D) 1,000.
Name: Date: 1. In the long run, the level of national income in an economy is determined by its: A) factors of production and production function. B) real and nominal interest rate. C) government budget
More informationPracticed Questions. Chapter 20
Practiced Questions Chapter 20 1. The model of aggregate demand and aggregate supply a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution
More informationPART A: For each worker, determine that worker's marginal product of labor.
ECON 3310 Homework #4 - Solutions 1: Suppose the following indicates how many units of output y you can produce per hour with different levels of labor input (given your current factory capacity): PART
More informationMidterm Exam #2. ECON 101, Section 2 summer 2004 Ying Gao. 1. Print your name and student ID number at the top of this cover sheet.
NAME: STUDENT ID: Midterm Exam #2 ECON 101, Section 2 summer 2004 Ying Gao Instructions Please read carefully! 1. Print your name and student ID number at the top of this cover sheet. 2. Check that your
More informationEC2105, Professor Laury EXAM 2, FORM A (3/13/02)
EC2105, Professor Laury EXAM 2, FORM A (3/13/02) Print Your Name: ID Number: Multiple Choice (32 questions, 2.5 points each; 80 points total). Clearly indicate (by circling) the ONE BEST response to each
More informationChapter 3 Market Demand, Supply, and Elasticity
Chapter 3 Market Demand, Supply, and Elasticity After reading chapter 3, MARKET DEMAND, SUPPLY, AND ELASTICITY, you should be able to: Discuss the Law of Demand and draw a Demand Curve. Distinguish between
More informationMidterm is in class on Wednesday, October 10. Bring #2 pencil and a calculator. No telephone-based calculators are allowed.
Economics 103 Fall 2012: Short answer/graphing review questions for first midterm. Additional practice questions are in the text within and at the end of each chapter. Midterm is in class on Wednesday,
More informationFinal Exam (Version 1) Answers
Final Exam Economics 101 Fall 2003 Wallace Final Exam (Version 1) Answers 1. The marginal revenue product equals A) total revenue divided by total product (output). B) marginal revenue divided by marginal
More informationTotal Hours Revenue Open (dollars) 1 $35 2 60 3 80 4 92 5 100 6 105
ECON 202-505, FALL 2011 Principles of Microeconomics Homework 1 Instructor: Sung Ick Cho 1) In economics, choices must be made because we live in a world of A) unemployment. B) scarcity. C) greed. D) unlimited
More information7. Refer to Table 10-1. The market value of all final goods and services produced within Bahkan in 2010 is a. $95. b. $100. c. $110. d. $120.
Chapter 10 1. For an economy as a whole, income must equal expenditure because a. the number of firms is equal to the number of households in an economy. b. individuals can only spend what they earn each
More information10) In the above figure, if the price is 8 then there is a A) surplus of 100. B) shortage of 200. C) surplus of 200. D) shortage of 100.
1) perfectly inelastic supply curve represents a ) fixed supply of a good. ) product with a constant price, regardless of the quantity offered for sale. C) product in abundant supply. ) product supply
More information1. Supply and demand are the most important concepts in economics.
Page 1 1. Supply and demand are the most important concepts in economics. 2. Markets and Competition a. Market is a group of buyers and sellers of a particular good or service. P. 66. b. These individuals
More informationDemand and Supply. Demand and supply determine the quantities and prices of goods and services.
Demand and Supply Chapter CHAPTER CHECKLIST Demand and supply determine the quantities and prices of goods and services. Distinguish between quantity demanded and demand, and explain what determines demand.
More informationECO364 - International Trade
ECO364 - International Trade Chapter 2 - Ricardo Christian Dippel University of Toronto Summer 2009 Christian Dippel (University of Toronto) ECO364 - International Trade Summer 2009 1 / 73 : The Ricardian
More informationChapter 3 Consumer Behavior
Chapter 3 Consumer Behavior Read Pindyck and Rubinfeld (2013), Chapter 3 Microeconomics, 8 h Edition by R.S. Pindyck and D.L. Rubinfeld Adapted by Chairat Aemkulwat for Econ I: 2900111 1/29/2015 CHAPTER
More informationEconomics. Worksheet 11.1. Circular Flow Simulation
Worksheet 11.1 Circular Flow Simulation Please note this is a class activity. Why not suggest it to your teacher? Objective: To understand how productive resources, goods and services and money flow from
More informationChapter 04 Firm Production, Cost, and Revenue
Chapter 04 Firm Production, Cost, and Revenue Multiple Choice Questions 1. A key assumption about the way firms behave is that they a. Minimize costs B. Maximize profit c. Maximize market share d. Maximize
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Chatper 34 International Finance - Test Bank MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The currency used to buy imported goods is A) the
More informationINTRODUCTION THE LABOR MARKET LABOR SUPPLY INCOME VS. LEISURE THE SUPPLY OF LABOR
INTRODUCTION Chapter 15 THE LBOR MRKET This chapter covers why there are differences in wages: How do people decide how much time to spend working? What determines the wage rate an employer is willing
More informationSUPPLY AND DEMAND : HOW MARKETS WORK
SUPPLY AND DEMAND : HOW MARKETS WORK Chapter 4 : The Market Forces of and and demand are the two words that economists use most often. and demand are the forces that make market economies work. Modern
More informationEcon 202 Final Exam. Douglas, Spring 2006 PLEDGE: I have neither given nor received unauthorized help on this exam.
, Spring 2006 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Final Exam 1. When the government spends more, the initial effect is that a. aggregate
More informationEcon 201 Exam 1 F2002 Professor Phil Miller Name: Student Number:
Econ 201 Exam 1 F2002 Professor Phil Miller Name: Student Number: Multiple Choice (3 points each) Directions: Identify the letter of the choice that best completes the statement or answers the question.
More informationMacroeconomics Instructor Miller GDP Practice Problems
Macroeconomics Instructor Miller GDP Practice Problems 1. Gross domestic product in the economy is measured by the A) total number of goods and services produced in the economy. B) dollar value of all
More informationCHAPTER 9 Building the Aggregate Expenditures Model
CHAPTER 9 Building the Aggregate Expenditures Model Topic Question numbers 1. Consumption function/apc/mpc 1-42 2. Saving function/aps/mps 43-56 3. Shifts in consumption and saving functions 57-72 4 Graphs/tables:
More information