Contemporary Economic Issues
Chapter Exam Questions
Course Introduction
Contemporary Economic Issues explores the major economic challenges and trends facing societies today, providing students with an in-depth understanding of current problems such as globalization, income inequality, environmental sustainability, technological change, labor market dynamics, and financial crises. Through the analysis of recent case studies, policy debates, and international perspectives, this course equips students with the tools to critically evaluate how economic theories apply to real-world situations, fostering informed opinions about potential policy solutions to these pressing issues.
Recommended Textbook
Economics 11th Edition by Roger A. Arnold
Available Study Resources on Quizplus
39 Chapters
5781 Verified Questions
5781 Flashcards
Source URL: https://quizplus.com/study-set/604 Page 2
Chapter 1: What Economics Is About
Available Study Resources on Quizplus for this Chatper
168 Verified Questions
168 Flashcards
Source URL: https://quizplus.com/quiz/11407
Sample Questions
Q1) Why do societies need rationing devices?
A) Because people have too many needs and not enough wants.
B) Because price exists.
C) Because scarcity exists.
D) Because people have opportunity costs.
Answer: C
Q2) Let X be the number of hours you spend studying for an exam on Wednesday afternoon and Y be your chances of winning the Wednesday night state lottery.What kind of a relationship do you most likely expect between X and Y?
A) direct
B) inverse
C) linear
D) 45-degree line
E) independent
Answer: E
Q3) The slope of a horizontal line is always equal to zero.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Production Possibilities Frontier Framework
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/11408
Sample Questions
Q1) Which scenario below most accurately describes the process by which a technological change can affect employment patterns across industries?
A) A technological advance makes it possible to produce more of good X with less labor. As a result, labor is released from producing good X. Some of this labor ends up producing goods Y and Z.
B) A technological advance makes it possible to produce less of good X with less labor. As a result, labor is released from producing good X. Some of this labor ends up producing good Y.
C) A technological advance makes it possible to produce more of good X with more labor. As a result, more labor is needed to produce good X. There is less labor available to produce goods Y and Z.
D) A technological advance makes it possible to produce more of good X with less labor. As a result, labor becomes more important to the production of good X. More labor ends up producing good X.
E) none of the above
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Supply and Demand: Theory
Available Study Resources on Quizplus for this Chatper
227 Verified Questions
227 Flashcards
Source URL: https://quizplus.com/quiz/11409
Sample Questions
Q1) If a supply curve shifts rightward,this means
A) suppliers are willing and able to offer less of the good for sale at every price.
B) suppliers are willing and able to offer more of the good for sale at every price.
C) quantity supplied is greater at every price.
D) suppliers are willing and able to offer more of the good for sale only at a particular price.
E) b and c
Answer: E
Q2) What is the definition of producers' surplus?
A) price received minus maximum selling price
B) maximum selling price minus price received
C) price received minus minimum selling price
D) highest price minus lowest price
E) none of the above
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Prices: Free, Controlled, and Relative
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/11410
Sample Questions
Q1) A price ceiling is a government-mandated
A) minimum price below which legal trades cannot be made.
B) maximum price above which legal trades cannot be made.
C) minimum price above which legal trades cannot be made.
D) maximum price below which legal trades cannot be made.
Q2) Refer to Exhibit 4-3.If price P<sub>?</sub> is a price floor,then
A) the quantity exchanged is Q<sub>1</sub>.
B) there is a surplus in the market for good X.
C) it is the lowest price that can legally be charged in the market for good X.
D) both b and c
E) all of the above
Q3) When the price of a good rises,the price is transmitting information indicating that the good is relatively A) scarcer.
B) less scarce.
C) more plentiful in supply.
D) b and c
Q4) List and describe the two major jobs performed by price.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Supply, Demand, and Price: Applications
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/11411
Sample Questions
Q1) Refer to Exhibit 5-5.If the airline charges price P<sub>1 </sub>for both aisle seats and middle seats,the result will be
A) a surplus of middle seats and the equilibrium quantity of aisle seats.
B) a surplus of aisle seats and the equilibrium quantity of middle seats.
C) a shortage of middle seats and the equilibrium quantity of aisle seats.
D) a shortage of aisle seats and the equilibrium quantity of middle seats.
Q2) Suppose that a television studio has two shows,X and Z,and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis,while the producers of show ________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ dollar amount.
A) Z; X; positive
B) Z; X; negative
C) X; Z; positive
D) X; Z; negative
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Macroeconomic Measurements: Prices and Unemployment
Available Study Resources on Quizplus for this Chatper
129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/11412
Sample Questions
Q1) Jamaal lost his job when a mechanical device replaced people with his skills.If Jamaal's skills are non-transferable,he would be considered to be structurally unemployed.
A)True
B)False
Q2) Which of the following statements is true?
A) Base year prices are necessarily higher than current year prices.
B) The CPI in the base year is 100.
C) If the CPI is 112 in year 1 and 123 in year 2, prices have risen by approximately 9.8 percent between the two years.
D) b and c
E) a, b, and c
Q3) "Full employment" is said to exist when the actual unemployment rate is zero.
A)True
B)False
Q4) Refer to Exhibit 6-1.Prices rose by __________ percent from Year 4 to Year 5.
A) 3.90
B) 3.75
C) 4.30
D) 5.90
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Macroeconomic Measurements: GDP and Real GDP
Available Study Resources on Quizplus for this Chatper
138 Verified Questions
138 Flashcards
Source URL: https://quizplus.com/quiz/11413
Sample Questions
Q1) Disposable income equals national income minus personal taxes.
A)True
B)False
Q2) If Real GDP was $8,742 billion in year 2 and it had been $8,509 billion in year 1,what was the approximate economic growth rate during this time period?
A) 9.73 percent
B) 2.67 percent
C) 3.58 percent
D) 2.74 percent
Q3) Refer to Exhibit 7-1.What is the value of net domestic product?
A) $5,840
B) $5,731
C) $5,650
D) $5,767
E) $6,637
Q4) If the GDP in one year is greater than it was in the previous year,then economic growth must have occurred.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Aggregate Demand and Aggregate Supply
Available Study Resources on Quizplus for this Chatper
208 Verified Questions
208 Flashcards
Source URL: https://quizplus.com/quiz/11414
Sample Questions
Q1) A falling interest rate affects the demand for consumer __________ and shifts the AD curve to the __________.
A) nondurables; right
B) nondurables; left
C) durables; right
D) durables; left
Q2) Starting from short-run equilibrium,the following occurs: labor productivity rises and individuals expect higher (future)incomes.What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the effect on the price level cannot be determined.
C) Real GDP rises and the price level necessarily falls.
D) Real GDP falls and the effect on the price level cannot be determined.
E) Real GDP rises and the price level necessarily rises.
Q3) In a two-country world,an increase in foreign input prices,ceteris paribus,
A) shifts the SRAS curve leftward, causing the price level to increase.
B) shifts the SRAS curve leftward, causing the price level to decrease.
C) shifts the SRAS curve rightward, causing the price level to increase.
D) shifts the SRAS curve rightward, causing the price level to decrease.
E) does not affect the SRAS curve or the price level.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Classical Macroeconomics and the Self Regulating Economy
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/11415
Sample Questions
Q1) Refer to Exhibit 9-4.Assume the economy is self-regulating and currently is in long-run equilibrium with the price level equal to P<sub>2</sub>.If something happens that shifts the AD curve to the AD<sub>1</sub> position,the economy will eventually settle down at a long-run equilibrium point of __________.
A) P<sub>5</sub>, Q<sub>3</sub>.
B) P<sub>4</sub>, Q<sub>4</sub>.
C) P<sub>3</sub>, Q<sub>3</sub>.
D) P<sub>3</sub>, Q<sub>5</sub>.
E) P<sub>4</sub>, Q<sub>2</sub>.
Q2) If Real GDP is less than Natural Real GDP,then the (actual)unemployment rate is A) less than the natural unemployment rate.
B) equal to the natural unemployment rate.
C) greater than the natural unemployment rate.
D) equal to full employment.
E) b and d
Q3) Explain the policy implications of the classical economists' beliefs.
Q4) Explain how it is possible for the economy to produce at a point beyond its institutional production possibilities frontier (PPF),but not beyond its physical PPF.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Keynesian Macroeconomics and Economic
Instability: A Critique of the Self-Regulating Economy
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/11416
Sample Questions
Q1) Refer to Exhibit 10-1.At Q<sub>1</sub>,
A) TE > TP, and there are decreases in inventory.
B) TP > TE, and there are increases in inventory.
C) TE = TP, and there are no changes in inventory.
D) TE > TP, and there are increases in inventory.
Q2) An increase in autonomous consumption,an increase in disposable income,or a decrease in the marginal propensity to consume can all increase consumption.
A)True B)False
Q3) If people buy more than has been produced, A) the economy is in equilibrium.
B) total expenditures are greater than total production.
C) there will be an increase in inventory.
D) there will be a decrease in total output.
Q4) Explain the process by which a change in autonomous spending can lead to an even greater change in Real GDP.
Q5) The marginal propensity to save (MPS)can be found using the equation: (1 - MPC).
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Fiscal Policy and the Federal Budget
Available Study Resources on Quizplus for this Chatper
164 Verified Questions
164 Flashcards
Source URL: https://quizplus.com/quiz/11417
Sample Questions
Q1) Refer to Exhibit 11-5 which summarizes the situation prior to the value added tax (VAT). The value added by the farmer is ______________. If the government imposes a VAT rate of 10 percent,the farmer must pay ___________ in VAT tax and will need to raise the price he charges the miller to _______________.
A) $0.60; $0.06; $0.66
B) $0.80; $0.08; $0.88
C) $1.40; $0.14; $1.54
D) $0.60; $0.60; $1.20
Q2) Senator Smith proposes that the income tax structure be revised to have two tax rates.The first,16 percent,applies to persons whose income is between $0 and $40,000 a year.The second,23 percent,applies to persons whose income is more than $40,000 a year.This is a
A) regressive income tax structure.
B) proportional income tax structure.
C) progressive income tax structure.
D) cyclical income tax structure.
Q3) List and describe three of the five different lags that can occur which may impede the effectiveness of the use of fiscal policy.
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Money, Banking,and the Financial System
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/11418
Sample Questions
Q1) In March 2010,M2 in the United States was approximately
A) $990 billion.
B) $6.6 billion.
C) $1.3 billion.
D) $2.2 billion.
E) $9.9 billion.
Q2) A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent.This means the bank could have __________ in checkable deposit liabilities and __________ in total reserves.
A) $80,000, $10,000
B) $100,000, $20,000
C) $50,000, $25,000
D) $100,000, $30,000
Q3) Which set of prices would you expect to see (posted,quoted)in a barter economy?
A) 1 horse = 10 pieces of gold; 1 kettle = 1 piece of gold
B) 1 horse = 10 kettles; 1 kettle = 1/10 horse
C) 1 horse = $200; 1 kettle = $20
D) 1 horse = 10 kettles; 1 kettle = 10 apples; 1 apple = 1 orange
E) b and d
Q4) Describe the differences between M1 and M2.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: The Federal Reserve System
Available Study Resources on Quizplus for this Chatper
184 Verified Questions
184 Flashcards
Source URL: https://quizplus.com/quiz/11419
Sample Questions
Q1) Refer to Exhibit 13-2. What word (up or down)should go in the place of blank (5)and blank (6),respectively?
A) up; up
B) up; down
C) down; up
D) down; down
Q2) Refer to Exhibit 13-2. What word (up or down)should go in the place of blank (3)and blank (4),respectively?
A) up; up
B) up; down
C) down; up
D) down; down
Q3) Which of the following has never been a monetary policy tool of the Fed?
A) open market operations
B) the required reserve ratio
C) the discount rate
D) the term auction facility (TAF) program
E) income tax rates
Q4) List and describe five of the eight major functions or responsibilities of the Fed.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Money and the Economy
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/11420
Sample Questions
Q1) Which of the following statements is true?
A) Monetarists believe that the government should be very involved in managing and directing the economy.
B) Monetarists believe that the economy is self-regulating.
C) There is very little difference between monetarist and Keynesian thought.
D) Monetarists hold that velocity is constant.
E) a and c
Q2) The simple quantity theory of money can be written as
A) P = MV/Q.
B) MV = Q/P.
C) PM = VQ.
D) Q = PMV.
E) all of the above
Q3) In the equation of exchange,the letter "V" stands for A) variance.
B) validity.
C) volume.
D) velocity.
Q4) Describe the expectations (or Fisher)effect.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Monetary Policy
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/11421
Sample Questions
Q1) The quantity demanded of money decreases as the supply of money increases.
A)True
B)False
Q2) Nonactivists argue against the use of discretionary monetary policy and rules-based monetary policy.
A)True
B)False
Q3) If Real GDP increases at an annual rate of 4 percent and velocity increases at a rate of 1 percent per year,then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at
A) 1
B) 2
C) 3
D) 4
E) 6
Q4) One argument in favor of activist monetary policy is that the economy does not always equilibrate quickly enough at Natural Real GDP.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Expectations Theory and the Economy
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/11422
Sample Questions
Q1) As the price level rises,real wage ____________and people choose to work
A) rises; more B) rises; less C) falls; more D) falls; less
Q2) Stagflation
A) is highly unlikely if the Phillips curve is downward sloping.
B) implies that a tradeoff between inflation and unemployment may not always exist. C) is the simultaneous occurrence of high rates of inflation and unemployment.
D) b and c
E) a, b, and c
Q3) Rational expectations are based on the past alone,while adaptive expectations are based on the past,the present,and the future.
A)True
B)False
Q4) Expectations theory tells us that what people think can impact the economy.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Economic Growth: Resources, Technology,
Ideas, and Institutions
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/11423
Sample Questions
Q1) List and describe four factors that can contribute to economic growth.
Q2) Absolute real economic growth is an increase in __________ from one period to the next.
A) GDP
B) Real GDP
C) per-capita Real GDP
D) per-capita GDP
E) none of the above
Q3) When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________,and a rise in the technology coefficient __________________.
A) shifts the production function upward; also shifts the production function upward
B) moves us up along a given production function; shifts the production function upward
C) shifts the production function downward; shifts the production function upward
D) shifts the production function upward; moves us up along a given production function
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: The Financial Crisis of 2007-2009
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/11424
Sample Questions
Q1) If nominal GDP is declining,it is necessarily true that Real GDP is also declining.
A)True
B)False
Q2) Suppose that a bank has $500 million in asset X,$400 million in asset Y,and $200 million in asset Z. Each asset has a different risk weight. The risk weight for asset X is 40%,the risk weight for asset Y is 70%,and asset Z has zero risk. The amount of risk-weighted assets for this bank is ____________ million. Assuming that the bank has to hold capital equal to 8% of its risk-weighted assets,the bank must hold _____________ million in capital.
A) $480; $38.4
B) $1,100; $88
C) $1,100; $880
D) $340; $27.2
Q3) During a time of rising asset values,a bank can increase its returns by engaging in regulatory capital arbitrage.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Debates in Macroeconomics Over the Role and
Effects of Government
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/11425
Sample Questions
Q1) According to many economists,if wages are _________________,the economy _____________ remove itself from a recessionary gap,and thus ____________ government intervention is needed.
A) flexible; can; no
B) inflexible; may not; some C) flexible; may not; some D) inflexible; can; no
E) a and b
Q2) Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes. Since I am in favor of bigger government,I choose a(n)_________________ in _________________.
A) less; decrease; increase; government spending
B) more; decrease; increase; government spending
C) less; rise; decrease; government spending
D) less; reduction; increase; taxes
E) b or d
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Elasticity
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/11426
Sample Questions
Q1) Price rises from $10 to $12,and the quantity demanded falls from 200 units to 100 units.What is the price elasticity of demand between these two prices?
A) 0.18
B) 3.67
C) 1.86
D) 0.27
Q2) If the seller of good X raises the price of good X,it follows that the total revenue of good X will __________,if demand is __________.
A) rise; inelastic
B) rise; elastic
C) fall; unit elastic
D) fall; elastic
E) a and d
Q3) When a good is perfectly inelastic in demand,or perfectly elastic in supply,the buyers will pay the full tax that is placed on the sellers.
A)True
B)False
Q4) Describe what cross elasticity of demand measures.Be specific in your response.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Consumer Choice: Maximizing Utility and Behavioral Economics
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/11427
Sample Questions
Q1) Which of the following statements does not invoke interpersonal utility comparisons?
A) The total utility a millionaire derives from $100 is less than the total utility a poor person derives from $100.
B) The marginal utility a millionaire derives from the one-millionth dollar is less than the marginal utility a poor person derives from the one-hundredth dollar.
C) For both the millionaire and the pauper, the marginal utility they derive from the one-thousandth dollar is less than the marginal utility they derive from the five-hundredth dollar.
D) None of the above, because all rely on interpersonal utility comparisons.
Q2) Ari is currently consuming 10 hot dogs and 8 hamburgers per week.The last hot dog she consumed yielded 20 utils while the last hamburger she ate gave her 25 utils.If hot dogs cost $2 and hamburgers cost $2.50,is Ari consuming the correct quantities of these two goods to be in consumer equilibrium?
A) No, she should consume more hamburgers and fewer hot dogs.
B) No, she should consume more hot dogs and fewer hamburgers.
C) Yes, so there is no need to change her eating habits.
D) There is not enough information to answer the question.
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 22: Production and Costs
Available Study Resources on Quizplus for this Chatper
247 Verified Questions
247 Flashcards
Source URL: https://quizplus.com/quiz/11428
Sample Questions
Q1) The reason marginal cost is equal to the change in total cost divided by the change in output,or the change in total variable cost divided by the change in output,is because
A) total variable cost rises as output rises.
B) of the law of diminishing marginal returns.
C) total fixed cost does not change as output changes.
D) total cost does not change as output changes.
E) none of the above
Q2) If the owner of a firm earns zero economic profit,he or she has earned total revenue equal to his or her
A) implicit costs.
B) explicit costs.
C) accounting profit.
D) implicit costs plus explicit costs.
E) none of the above
Q3) If a firm is earning an economic profit,it is necessarily earning an accounting profit,too.
A)True
B)False
Q4) What is the typical shape of the AFC curve? Explain why it is shaped this way.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Perfect Competition
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/11429
Sample Questions
Q1) A perfectly competitive firm that maximizes profit exhibits resource allocative efficiency because it produces where price
A) equals minimum average total cost.
B) equals marginal revenue.
C) equals marginal cost.
D) is greater than minimum average variable cost.
Q2) Refer to Exhibit 23-10. What price does this firm charge for its product?
A) $10
B) $20
C) $25
D) $30
E) There is not enough information to answer this question.
Q3) Refer to Exhibit 23-3.What quantity of output should the profit-maximizing firm produce?
A) 41 units
B) 42 units
C) 44 units
D) 45 units
E) 46 units
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: Monopoly
Available Study Resources on Quizplus for this Chatper
191 Verified Questions
191 Flashcards
Source URL: https://quizplus.com/quiz/11430
Sample Questions
Q1) Refer to Exhibit 24-2.This monopolist is earning
A) an economic loss of area P<sub>0</sub>P<sub>3</sub>FA.
B) an economic loss of area P<sub>0</sub>P<sub>2</sub>CA.
C) an economic profit of area P<sub>2</sub>P<sub>3</sub>FC.
D) an economic profit of area P<sub>0</sub>P<sub>2</sub>CA.
Q2) The profit-maximizing single-price monopolist will charge a price
A) equal to marginal revenue.
B) greater than marginal cost.
C) less than marginal revenue, but greater than marginal cost.
D) greater than marginal revenue, but equal to marginal cost.
E) a and b
Q3) Refer to Exhibit 24-10.The profit-maximizing single-price monopolist earns total revenue equal to what area?
A) 0BCQ<sub>1</sub>
B) 0ADQ<sub>1</sub>
C) DCE
D) ABCD
E) GFC
Q4) Define price discrimination.What three conditions must exist before a firm can use it successfully?
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Monopolistic Competition, Oligopoly, and Game Theory
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/11431
Sample Questions
Q1) Excess capacity results from a
A) downward-sloping demand curve and a U-shaped ATC curve.
B) downward-sloping demand curve and no fixed costs.
C) horizontal demand curve and an upward-sloping marginal cost curve.
D) perfectly inelastic demand curve and a downward-sloping ATC curve.
E) none of the above
Q2) Refer to Exhibit 25-7.A monopolistic competitive firm that seeks to maximize profits (producing at the level of output where MR = MC)will sell __________ units and charge a price of __________ .
A) 10; $10
B) 40; $7
C) 20; $9
D) 60; $5
E) 70; $7
Q3) A firm in a monopolistic competitive market will produce a level of output at which
A) P < MR.
B) P = MR.
C) P > MR.
D) P = MC.
Page 27
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Government and Product Markets: Antitrust and Regulation
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/11432
Sample Questions
Q1) A network good is one whose value
A) increases as the expected number of units sold increases.
B) was created by the Internet.
C) is dependent upon interconnection to another good.
D) is defined by its links to other markets.
Q2) The statement,"Every person who shall monopolize,or attempt to monopolize,or combine or conspire with any other person or persons to monopolize any part of the trade or commerce...shall be guilty of a misdemeanor" is a part of the
A) Clayton Act.
B) Robinson-Patman Act.
C) Sherman Act.
D) Wheeler-Lea Act.
E) none of the above
Q3) Refer to Exhibit 26-2.The four-firm concentration ratio in Year 4 was
A) 95 percent.
B) 90 percent.
C) 80 percent.
D) 70 percent.
E) This cannot be determined from the given data.
Page 28
To view all questions and flashcards with answers, click on the resource link above.
Chapter 27: Factor Markets: With Emphasis on the Labor Market
Available Study Resources on Quizplus for this Chatper
181 Verified Questions
181 Flashcards
Source URL: https://quizplus.com/quiz/11433
Sample Questions
Q1) Assume the following conditions hold: (1)the demand for every type of labor is the same,(2)there are no special nonpecuniary aspects to any job,(3)all labor is ultimately homogeneous and can costlessly be trained for different types of employment,(4)all labor is mobile at zero cost.Given these conditions,
A) wage rates will be the same in most labor markets.
B) the demand for labor will be less in some labor markets than in others.
C) wage rates will be the same in all labor markets.
D) wage rates will be the same in very few labor markets.
Q2) Which of the following can change the wage rate in labor market A?
A) An increase in the price of the product that employees in labor market A produce.
B) A negative change in the working conditions in labor market A.
C) A rise in the wage rate in labor market B.
D) a and c
E) a, b, and c
Q3) For a given labor market,an increase in the MPP of labor will shift the demand curve for labor rightward.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 29
Chapter 28: Wages,Unions,and Labor
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/11434
Sample Questions
Q1) Refer to Exhibit 28-5.In case (1),with a rise in the wage rate from W<sub>1</sub> to W<sub>2</sub>,the wage bill will fall if
A) (Q<sub>1</sub> - Q<sub>2</sub>) x W<sub>1</sub> > (W<sub>2</sub>W<sub>1</sub>) x Q<sub>2</sub>.
B) (Q<sub>3</sub> - Q<sub>2</sub>) x W<sub>3</sub> > (W<sub>2</sub>W<sub>3</sub>) x Q<sub>2</sub>.
C) W<sub>2</sub> x Q<sub>2</sub> > Q<sub>3</sub> x W<sub>1</sub>.
D) (W<sub>1</sub> - W<sub>3</sub>) x Q<sub>2</sub> > (W<sub>2</sub>W<sub>1</sub>) x Q<sub>2</sub>.
Q2) Describe the difference between the traditional (or orthodox)view of labor unions and the labor-union-as-collective-voice view of labor unions with respect to the impact that unions have on productivity and efficiency.
Q3) Which of the following is a possible objective of labor unions?
A) employment for all union members
B) maximizing the total (union) wage bill
C) maximizing income for a limited number of union members
D) a and b
E) a, b, and c
To view all questions and flashcards with answers, click on the resource link above.
Page 30
Chapter 29: The Distribution of Income and Poverty
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/11435
Sample Questions
Q1) Which of the following is not an example of in-kind transfer payments?
A) food stamps
B) subsidized public housing
C) subsidized public education
D) Aid to Families with Dependent Children (AFDC)
E) Medicaid
Q2) The Gini coefficient is a number between
A) 0 and 1.
B) 1 and 10.
C) 0 and 100.
D) -1 and 1.
Q3) It is possible for everyone to be better off (in absolute terms)even though the income distribution has become more unequal.
A)True
B)False
Q4) Maria and Lourdes work for the same company.If Maria earns more than Lourdes,is this evidence of wage discrimination? Explain your answer.
Q5) Describe the relationship between income and education in the United States. Cite evidence that supports and explains this relationship.
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Interest, Rent, and Profit
Available Study Resources on Quizplus for this Chatper
199 Verified Questions
199 Flashcards
Source URL: https://quizplus.com/quiz/11436
Sample Questions
Q1) If the return on capital is 12 percent and the price for loanable funds is 14 percent,then
A) currently businesses will not borrow loanable funds to invest in capital goods.
B) eventually the return on capital will decrease to the point where businesses will find it profitable to borrow loanable funds.
C) the return on capital will fall as the supply of capital decreases over time, and simultaneously, the price for loanable funds will increase as savers make even more savings available.
D) a and b
Q2) If X is the actual amount of income or receipts and i is the interest rate (in decimals)that could be earned on alternative uses of money that face the same risk,the present value of X one year from now is computed by A) X/(1-i).
B) X/(1+i).
C) i/(1+X).
D) (X)(1 + i).
E) (i)(1 + X).
Q3) Describe the three theories of where profit comes from.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 31: Market Failure: Externalities, Public Goods, and
Asymmetric
Information
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/11437
Sample Questions
Q1) The side effect of an action that increases the well-being of others is called A) an augmentation.
B) an elasticity.
C) a passive benefit.
D) a positive externality.
Q2) Refer to Exhibit 31-3.Suppose that Firms A,B,and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere.To cut the level of pollution in half the government issues two transferable pollution permits to each firm. What is the total cost to society of decreasing pollution to half its present level if firm C buys one pollution permit from firm A and one pollution permit from firm B?
A) $515
B) $1,300
C) $1,380
D) $965
E) $10,350
Q3) Describe the Coase theorem and explain why it is significant in the analysis of externatility problems.
Q4) Explain why the socially optimal output is not always the same as the market output.
Page 33
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Public Choice and Special-Interest-Group
Politics
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/11438
Sample Questions
Q1) Logrolling is the exchange of votes to gain support for legislation.
A)True
B)False
Q2) Refer to Situation 32-1.Which of the following arguments is least likely to have been used by the U.S.auto industry to argue for import quotas?
A) If the quantity of low-priced import cars is not restricted, foreigners will overtake the U.S. car market.
B) A healthy auto industry is vital to our national security.
C) If import quotas are in place, our profits will increase by about $300 per vehicle.
D) Japan is protecting its market, and so should we; all we want is a level playing field.
Q3) Under certain circumstances,a congressional district may be a special interest group.
A)True
B)False
Q4) Public choice deals exclusively with business decisions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 34
Chapter 33: Building Theories to Explain Everyday Life: From
Observations to Questions to Theories to Predictions
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/11439
Sample Questions
Q1) Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens. Implicit in this position is the belief that
A) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory is a good explanation of how things work.
B) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory will be accepted by others.
C) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory's assumptions (even if they initially seem unrealistic) capture something that is essential to explaining what it is that the theory is trying to explain.
D) all of the above
Q2) Theories should be judged based upon how consistently and precisely they predict and how well they explain things.
A)True
B)False
Q3) Identify and describe each step of the five-step process outlined in the text for building and testing theories.
To view all questions and flashcards with answers, click on the resource link above. Page 35
Chapter 34: International Trade
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/11440
Sample Questions
Q1) A tariff raises the price of the product on which the tariff has been placed,decreases consumers' surplus,increases producers' surplus,and generates tariff revenue for the government.
A)True
B)False
Q2) The answer is: "There is a net loss to society." What is the question?
A) What causes the distributional effects to outweigh the aggregate effects?
B) What is an effect of a reduction in producers' surplus?
C) What is an effect of consumers' surplus?
D) What is the effect of a tariff instead of a quota?
E) none of the above
Q3) In order for good X to be a likely candidate for offshoring,it must be produced with ______________ labor intensity and be a relatively ________________ good.
A) low; light
B) low; heavy
C) high; heavy
D) high; light
Q4) List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?
To view all questions and flashcards with answers, click on the resource link above. Page 36
Chapter 35: International Finance
Available Study Resources on Quizplus for this Chatper
119 Verified Questions
119 Flashcards
Source URL: https://quizplus.com/quiz/11441
Sample Questions
Q1) If Japanese real interest rates fall relative to real interest rates in the U.S.,the yen will likely appreciate and the dollar will likely depreciate.
A)True
B)False
Q2) If the U.S.dollar appreciates in the foreign exchange market,U.S.exports will be __________ and U.S.imports will be __________.
A) relatively less expensive; relatively less expensive
B) relatively less expensive; relatively more expensive
C) relatively more expensive; relatively less expensive
D) relatively more expensive; relatively more expensive
E) unaffected; relatively less expensive
Q3) Suppose that the exchange rate between the U.S.dollar and the Mexican peso is 1 peso = $0.11. If the U.S.dollar price per Mexican peso changes to 1 peso =$0.10,the peso is said to have __________ and the dollar to have __________.
A) depreciated; appreciated
B) appreciated; appreciated
C) appreciated; depreciated
D) depreciated; depreciated
To view all questions and flashcards with answers, click on the resource link above. Page 37
Chapter 36: Globalization and International Impacts on the Economy
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/11442
Sample Questions
Q1) Globalization is necessarily bad for U.S.workers. A)True B)False
Q2) When real interest rates in the United States rise relative to real interest rates in Japan,what is the impact on the U.S.price level? Explain your answer using AD-SRAS analysis.
Q3) As the dollar appreciates,the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________. A) rises; right B) rises; left C) falls; right D) falls; left
Q4) Economists are fairly confident that globalization leads to a(n)_____________ standard of living based on their comparisons of countries with __________________ characteristics.
A) increased; similar B) increased; very few similar C) decreased; similar D) decreased; very few similar
To view all questions and flashcards with answers, click on the resource link above.
Chapter 37: The Economic Case For and Against
Government: Five Topics Considered
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/11443
Sample Questions
Q1) A special interest group has a good chance of redistributing (transferring)income from others to itself if the
A) costs of the transfer are spread over a very large number of people.
B) costs of the transfer are spread over a very small number of people.
C) costs of the transfer are spread over the same number of people that comprise the special interest group.
D) the number of members in the special interest group is greater than 100.
E) none of the above
Q2) Most economists believe that the market __________ produce nonexcludable public goods because of the __________.
A) will; monetary incentive they have to produce them
B) will not; externality problem
C) will not; free rider problem
D) will; market shortage that often accompanies the production of public goods.
E) none of the above
Q3) In the case of a nonexcludable public good,the market will fail to produce the good because of the free rider problem.
A)True
B)False
Page 39
To view all questions and flashcards with answers, click on the resource link above.
Chapter 38: Stocks, Bonds, Futures, and Options
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/11444
Sample Questions
Q1) Which of the following is false?
A) A corporate bond typically has face value of $1,000.
B) Corporate bonds typically sell for a price that is equal to the bond's face value.
C) The interest that corporate bonds pay is fully taxable.
D) State and local governments issue municipal bonds.
Q2) The longer you hold stocks in the stock market,the more likely you will earn a positive return,ceteris paribus.
A)True
B)False
Q3) An IOU that promises to pay a certain amount at maturity,and also to pay periodic fixed amounts until that date,is called a(n)
A) stock.
B) equity.
C) bond.
D) futures contract.
Q4) A bear market is one in which prices are expected to rise.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 39: Agriculture: Problems, Policies, and Unintended Effects
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/11445
Sample Questions
Q1) Which of the following is true?
A) In a price support program, consumers end up paying the price support.
B) In a target price system, consumers end up paying the target price.
C) In a target price system, the per-unit deficiency payment is equal to the difference between the quantity demanded at the market price and the quantity supplied at the market price.
D) Acreage allotment programs directly (as opposed to indirectly) raise agricultural product prices.
E) b and d
Q2) When productivity increases in the production of agricultural products,the supply curve for agricultural products shifts rightward.
A)True
B)False
Q3) One of the consequences of an agricultural price support program is
A) a surplus.
B) more exchanges made at the price support.
C) lower prices paid by consumers.
D) lower taxes for taxpayers.
E) a and c
To view all questions and flashcards with answers, click on the resource link above.