Introduction to Economics
a. everything is variable.
b. all else is held equal
c. no one knows which variables will change and which will remain constant.
d. what is true for the individual is not necessarily true for the whole.
a. decrease wages.
b. decrease the supply of labor.
c. increase wages.
d. increase the supply of labor.
a. budget deficit. (wrong)
b. budget surplus.
c. decrease in payroll tax.
d. decrease in proportional taxes.
a. GDP per capita
b. The Industrial Revolution
c. The living standard
d. Investment and inventions
a. absolute advantage
b. opportunity cost
c. relative advantage
a. out of the labor force.
c. employed in the underground economy.
a. prices that can be charged
b. natural monopoly
c. conditions of entry in a certain industry
d. quantities that can be produced
a. suppliers wish to sell less of it.
b. more of it is produceD)
c. more of it is desireD)
d. buyers desire to purchase less of it.
a. 14%; over 50%
b. 12%; over 60%
c. 14%; over 70%
d. 12%; over 80%
a. distant future
b. near future
c. immediate future
d. short run
a. long term growth; cyclical unemployment
b. potential GDP; natural rate of unemployment
c. natural level of output; cyclical unemployment rate
d. real GDP; natural rate of unemployment
a. the production possibilities frontier
b. allocative efficiency
a. increase the production of steel-using American firms.
b. increase American production of steel.
c. generate tax revenue to the government.
d. reduce the cost of production to steel-using American firms. (wrong)
a. fixed costs; do not change,
b. variable costs; are constantly changing,
c. fixed costs; are consistently changing,
d. variable costs; do not change,
a. levied on imports, whereas a quota is imposed on exports.
b. levied on exports, whereas a quota is imposed on imports.
c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exporteD)
d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be importeD)
a. to offer commercial applications in the short-term.
b. to offer commercial applications in the long-term.
c. an economic payoff in the short or medium-term.
d. an economic payoff in the medium or long-term.
a. collective bargaining
b. cooperative bargaining
c. united bargaining
d. organized bargaining
a. high-skill labor
b. lower wage
a. relative advantage
b. absolute advantage
c. economy of scale
d. production efficiency
a. price setter
b. business entity
c. price taker
d. trend setter
a. diminishing marginal utility
b. marginal utility pattern
c. marginal income utility
d. decreasing marginal utility
d. business sector
a. Phillips; short
b. Keynesian; long
c. Neoclassical; long
d. Says; short
a. received more in taxes than it spent in that year.
b. increased the proportional tax level.
c. equalized spending and taxes in that year.
d. increased the corporate income tax rate.
a. Federal Reserve
b. Central Bank
c. U.S. Department of the Treasury
d. U.S. Office of the Comptroller of Currency
a. Collusion (wrong)
b. A cartel
c. A monopoly
d. An oligopoly
a. the number of people unemployed divided by the number of people employeD)
b. unemployed workers as a percentage of the labor force.
c. unemployed workers as a percentage of the population age over-sixteen.
d. unemployed workers as a percentage of the population.
a. service contract
b. insurance policy
c. money-back guarantee
a. balance of trade
b. double coincidence of wants
c. convenience of exchange
d. division of labor
a. Marginal revenue
b. Total revenue
c. Economic profit
d. Accounting profit
a. an oligopoly
b. a monopoly
c. a perfect competitor
d. an oligopolizor
a. decreases the price of the imported goods to consumers
b. increases the price of the domestic goods to consumers
c. redistributes income away from domestic producers of those products toward domestic producers of exports
d. both a) and c)
a. China and Vietnam
b. Cuba and North Korea
c. South Africa and Kenya
d. Germany and France
b. marginal utility
c. added utility
d. Giffen utility
a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of men’s suits that can be imported from a foreign country
c. a subsidy from the American government to domestic manufacturers of men’s suits so they can compete more effectively with foreign producers of men’s suits
d. a $100-per-car fee imposed on all small cars imported
c. Import quotas
d. Non-tariff barriers
a. firms will be protected from subsidized foreign competition.
b. domestic producers can attain the economies of scale to allow them to compete in world markets.
c. there will be adequate supplies of crucial resources in case they are needed for national defence.
d. it will not be subjected to a takeover from a foreign competitor.
c. Chief Executive Officer
d. Board of Directors
a. all market-oriented economies will implement coordinated wage reductions.
b. each economy will always head for its natural rate of unemployment.
c. each economy must shift in aggregate demand and create additional employment.
d. all changes in prices and wages will create additional employment. (wrong)
a. trade deficit
b. trade imbalance
c. trade surplus
d. trade balance
a. social costs
c. market failure
d. private costs
a. $775 million
b. $475 million
c. $275 million
d. $700 million
a. FOMC; passing of tax and spending bills.
b. Central Bank; safety and stability of the banking system.
c. FFIEC; day-to-day democratic control of policy.
d. FDIC; responsibility for deposit insurance.
a. Office of the Comptroller of the Currency
b. Federal Financial Institutions Examination Council
c. Federal Open Market Committee
d. The Federal Reserve
a. budget constraint
b. marginal analysis
c. opportunity cost
d. marginal utility
a. an increase in payroll tax.
b. an increase in excise tax.
c. a budget surplus.
d. a budget deficit.
a. Pork-barrel spending
c. Competitive spending
d. Politically conservative spending