Final exam - Exam paper PDF

Preview

Summary

Exam paper...

Description

  

ECON 1580 - AY2020-T5 Final Exam (Days 1 - 4) Final Exam

Question 1 Not yet answered Marked out of 1.00

Flag question Question text

In 1984, the Department of Justice reached an agreement with AT&T that: Select one: a. allowed AT&T to continue to provide local telecommunications service to established customers but prevented it from accepting any new customers. b. allowed the so-called Baby Bells to provide long-distance service to their local customers. c. separated AT&T from the regional Bell operating companies. d. led to significant degrees of competition and the reduction of monopoly power in local markets with most of the change coming within 10 years after the agreement.

Question 2 Not yet answered Marked out of 1.00

Flag question Question text

An important determinant of the price elasticity of demand is the: Select one: a. time period. b. price of related goods. c. level of technology.

d. quantity of the good supplied. Clear my choice

Question 3 Not yet answered Marked out of 1.00

Flag question Question text

For a factor of production to be called capital it must: Select one: a. be produced. b. occur in the natural environment. c. be a part of human skill. d. be a result of a stock issue. Clear my choice

Question 4 Not yet answered Marked out of 1.00

Flag question Question text

The congressional act that established the U.S. central banking system in 1913 was the: Select one: a. Federal Reserve Act. b. Gramm-Rudman Act. c. Employment Act. d. Humphrey-Hawkins Act.

Clear my choice

Question 5 Not yet answered Marked out of 1.00

Flag question Question text

The second of the three ranges of production is characterized by _______ marginal returns. Select one: a. increasing b. constant c. diminishing d. negative Clear my choice

Question 6 Not yet answered Marked out of 1.00

Flag question Question text

If the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases, this indicates that these two goods are: Select one: a. unrelated goods. b. superior goods. c. inferior goods. d. substitute goods.

Clear my choice

Question 7 Not yet answered Marked out of 1.00

Flag question Question text

A decrease in the demand facing a monopoly firm would _______ quantity and _______ price. The demand is inelastic. Select one: a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease Clear my choice

Question 8 Not yet answered Marked out of 1.00

Flag question Question text

Economic growth can be represented by: Select one: a. an increasing equilibrium output level b. a rightward shift of an economy's short-run aggregate supply curve. c. a rightward shift of an economy's long-run aggregate demand curve. d. a rightward shift of an economy's long-run aggregate supply curve. Clear my choice

Question 9 Not yet answered Marked out of 1.00

Flag question Question text

A firm's total output times the price at which it sells that output is: Select one: a. net revenue. b. total revenue. c. average revenue. d. marginal revenue. Clear my choice

Question 10 Not yet answered Marked out of 1.00

Flag question Question text

Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%? Select one: a. The bank's required reserves will decrease to $500. b. The bank's excess reserves will increase to $1,000. c. The bank's required reserves will increase to $1,000. d. The bank's ability to create loans increases by 5%.

Question 11 Not yet answered

Marked out of 1.00

Flag question Question text

In this exhibit (Consumer Equilibrium 3), assume that you are consuming the combination of goods at point K. Given budget constraint FL, utility can be increased by moving to point: Select one: a. F. b. G. c. H. d. I. Clear my choice

Question 12 Not yet answered Marked out of 1.00

Flag question Question text

If the federal budget is initially balanced and government expenditures remain constant, then an increase in GDP will _________ tax revenues and create a budget _________. Select one: a. increase; surplus b. increase; deficit c. decrease; surplus d. decrease; deficit Clear my choice

Question 13 Not yet answered Marked out of 1.00

Flag question Question text

Profit computed using explicit costs as the only measure of costs is: Select one: a. explicit profit. b. accounting profit. c. implicit profit. d. economic profit. Clear my choice

Question 14 Not yet answered Marked out of 1.00

Flag question Question text

The branch of economics that examines the impact of choices on aggregates in the economy is: Select one: a. positive economics. b. normative economics. c. macroeconomics. d. microeconomics. Clear my choice

Question 15 Not yet answered Marked out of 1.00

Flag question Question text

Generational accounting: Select one: a. is a method of assessing the impact of fiscal policy lags from one generation to another. b. measures the number of generations it takes to pay off the national debt at a given point in time. c. evaluates the impact of current fiscal policies on different generations in the economy, including future generations. d. is an accounting method that defers to the future, the cost of any government policy the rewards of which will be reaped in the future. Clear my choice

Question 16 Not yet answered Marked out of 1.00

Flag question Question text

Which of the following statements is true about velocity? Select one: a. In the short run, velocity varies but in the long run, velocity is relatively constant. b. In the short run, velocity is relatively constant but in the long run, velocity varies. c. Velocity is relatively constant in the short run and in the long run. d. Velocity fluctuates with fluctuations in economic activity and changes in the growth rate of money supply. Clear my choice

Question 17 Not yet answered Marked out of 1.00

Flag question Question text

This exhibit (Table 6-4), shows some output and income data for Manna Land. What is the value of Manna Land's net foreign income? Select one: a. –$100 billion

b. $1,100 billion c. $100 billion d. $200 billion Clear my choice

Question 18 Not yet answered Marked out of 1.00

Flag question Question text

Using the aggregate demand-aggregate supply model, predict what happens in the short run when there is a general decrease in raw materials cost. Select one: a. The aggregate supply curve shifts right; the aggregate demand curve is not affected; price level decreases; real GDP increases. b. The aggregate supply curve shifts left; the aggregate demand curve is not affected; price level increases; real GDP decreases. c. The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase. d. The aggregate demand curve shifts left; the aggregate supply curve is not affected; price level and real GDP decrease. Clear my choice

Question 19 Not yet answered Marked out of 1.00

Flag question Question text

The income effect of a price change is described by which of the following statements?

Select one: a. When the price of a good falls, consumers have an implicit increase in income and can now buy more of the good. b. When the price of a good falls, consumers will now substitute this lower priced good for more higher priced goods. c. The income effect is the relative change in the amount of a good consumed when the price of another good changes. d. The income effect shows how a change in income at a given price will affect the quantity of a good purchased. Clear my choice

Question 20 Not yet answered Marked out of 1.00

Flag question Question text

The slope of the total product curve is: Select one: a. fixed product. b. average product. c. marginal product. d. implicit product. Clear my choice

Jump to...

Question 21 Not yet answered Marked out of 1.00

Flag question Question text

Suppose that the price elasticity of demand for grapefruit is -2.8. The introduction of a new variety that is cheaper to grow should cause consumer expenditures for grapefruit to: Select one: a. rise. b. fall. c. remain unchanged. d. it is not possible to answer with the information given. Clear my choice

Question 22 Not yet answered Marked out of 1.00

Flag question Question text

All other things unchanged, a tax on a product that leads to an increase in the cost of production would: Select one: a. lead to an increase in supply.

b. lead to a decrease in demand. c. result in an increased price. d. lead to a decrease in supply. Clear my choice

Question 23 Not yet answered Marked out of 1.00

Flag question Question text

Which of the following exemplifies the outlet bias in the computation of the CPI? Select one: a. Roxanna refuses to shop at factory outlet stores because she says that the layouts of the stores are too chaotic and therefore is too time-consuming. b. Yu-Jen does most of her family's shopping at Costco instead of Safeway because the prices at Costco are more competitive. c. Katie prefers to buy her groceries at Whole Foods because they carry a wide selection oforganic produce. d. Diana does her holiday shopping when she travels to China to take advantage of the "great deals" on most items. Clear my choice

Question 24 Not yet answered Marked out of 1.00

Flag question Question text

Freema withdraws $1,000 from her checking account to purchase a $1,000 timedeposit. As a result of her transaction:

Select one: a. M1 and M2 decrease. b. M1 decreases and M2 increases. c. M1 decreases and M2 is unaffected. d. M1 and M2 are unaffected. Clear my choice

Question 25 Not yet answered Marked out of 1.00

Flag question Question text

Assume an economy is operating on its production possibilities curve, which shows the production of military and civilian goods. If the output of military goods is increased, the output of civilian goods: Select one: a. will increase too. b. will not change. c. must decrease. d. may increase or decrease. Clear my choice

Question 26 Not yet answered Marked out of 1.00

Flag question Question text

A feature of monopoly that leads to unfavorable consequences is that it: Select one:

a. reduces income inequality. b. sets marginal cost equal to price. c. produces more output than if perfectly competitive firms characterized the same industry. d. charges a higher price than if perfectly competitive firms characterized the same industry. Clear my choice

Question 27 Not yet answered Marked out of 1.00

Flag question Question text

In large shopping areas, the retail market is most illustrative of: Select one: a. monopolistic competition. b. monopoly. c. perfect competition. d. perfect oligopoly. Clear my choice

Question 28 Not yet answered Marked out of 1.00

Flag question Question text

In this exhibit (Figure 7-4), for the economy represented in the figure: Select one: a. the real wage rate is higher than full-employment real wage. b. the real wage rate is lower than full-employment real wage. c. the nominal wage rate is higher than full-employment nominal wage. d. the nominal wage rate is higher than full-employment real wage. Clear my choice

Question 29 Not yet answered Marked out of 1.00

Flag question Question text

The short run is a period that is: Select one: a. less than one week. b. less than one month.

c. long enough in which to vary output but not plant capacity. d. long enough in which to make all economic adjustments. Clear my choice

Question 30 Not yet answered Marked out of 1.00

Flag question Question text

What is the relationship between average household income and standard of living? Select one: a. There is no relationship. Increasing average income says nothing about income distribution. b. Rising income enables households to acquire more of the goods and services that improve their material standard of living. c. Rising income tends to increase the crime rate and violence, thereby lowering a country's standard of living. d. There is no relationship. Standard of living depends on productivity not household income. Clear my choice Previous page

Next page

◄ Review Quiz #3 Jump to...

Jump to...

Question 31 Not yet answered Marked out of 1.00

Flag question Question text

In this exhibit (Profit Maximization for a Firm in Monopolistic Competition), suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC' before the innovation reduced the cost, the firm's maximum economic profit was: Select one: a. $0. b. $30. c. $750. d. $4,500. Clear my choice

Question 32 Not yet answered Marked out of 1.00

Flag question Question text

Following an income-compensated price change, you decide to decrease the quantity of ice cream purchased each month when the price increases and purchase more frozen yogurt instead. This is an indication of the: Select one: a. substitution effect. b. utility effect. c. income effect. d. consumption effect. Clear my choice

Question 33 Not yet answered Marked out of 1.00

Flag question Question text

In this exhibit (Monopoly Through Collusion), given the duopoly industry illustrated in the exhibit, if the two firms colluded to maximize their combined economic profits, the market price they would set would be _______ and combined economic profits of the firms would be _______ . Select one: a. P ; given by the area of the rectangle bounded by 0P CQ 1

1

4

b. P1; zero c. P ; given by the area of the rectangle bounded by 0P AQ 3

3

1

d. P ; given by the area of the rectangle bounded by P P BG 2

1

2

Clear my choice

Question 34 Not yet answered Marked out of 1.00

Flag question Question text

Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a budget surplus of $130 billion. How much will its new national debt be?

Select one: a. $5,130 billion b. $4, 870 billion c. $15,130 billion d. $19, 870 billion Clear my choice

Question 35 Not yet answered Marked out of 1.00

Flag question Question text

Which of the following reduces the duration of frictional unemployment? Select one: a. retraining unemployed workers to equip them with new skills b. subsidizing firms that are willing to train new entrants in the labor market c. establishing employment agencies which give out information about job vacancies d. establishing labor unions which will protect workers from being laid off. Clear my choice

Question 36 Not yet answered Marked out of 1.00

Flag question Question text

The incorrect presumption that because two events tend to occur together, one must cause the other is the: Select one:

a. confusion of economists. b. blunder of science. c. fallacy of false cause. d. error of inclusion. Clear my choice

Question 37 Not yet answered Marked out of 1.00

Flag question Question text

Towards the end of the twentieth century, some of the world's more affluent countries experienced robust growth. Which of the following is not linked to high growth performance? Select one: a. encouragement of competitive behavior b. private sector research and development c. strict regulations in labor markets, for example strict employment protection legislation d. liberal trade policies Clear my choice

Question 38 Not yet answered Marked out of 1.00

Flag question Question text

If an industry's long-run supply curve is upward sloping, the industry is characterized by:

Select one: a. increasing cost. b. decreasing cost. c. constant cost. d. high overhead cost. Clear my choice

Question 39 Not yet answered Marked out of 1.00

Flag question Question text

The cost of the Great Depression between 1929 and 1942 was a loss of: Select one: a. more than the United States ultimately spent on World War II. b. over $15 trillion in today's dollars. c. the output that otherwise would have been produced by the 50 percent of the nation's workers who had lost their jobs. d. both B and C are true. Clear my choice

Question 40 Not yet answered Marked out of 1.00

Flag question Question text

The cross price elasticity of demand for substitutes goods is: Select one:

a. negative. b. positive. c. equal to 1. d. positive only for normal goods. Clear my choice

Question 41 Not yet answered Marked out of 1.00

Flag question Question text

Which of the following statements is true? I. Small differences in rates of economic growth can lead to large differences in levels of potential output over time. II. From the perspective of the rule of 72, small differences in rates of economic growth between two countries will not significantly affect their respective standards of living. III. Countries that have higher population growth rates are likely to see higher economic growth rates because increases in population lead to increases in the size of the labor force. Select one: a. I and III b. II and III c. I only d. II only e. III only Clear my choice

Question 42 Not yet answered Marked out of 1.00

Flag question Question text

The supply curve for the firm in perfect competition: Select one: a. is the MC curve above the minimum of ATC. b. tells the quantity produced at each price. c. must result in a price greater than MR. d. shows the outputs at which the firm makes an economic profit. Clear my choice

Question 43 Not yet answered Marked out of 1.00

Flag question Question text

The value of gross domestic product (GDP) differs from the value of gross national product (GNP) when: Select one: a. net exports are excluded from GDP but included in GNP. b. production in one country employs factors of production owned by residents of other countries. c. production in one country employs only factors of production owned by its residents. d. when domestic firms that produce in factories abroad are exempt from paying domestic taxes. Clear my choice

Question 44 Not yet answered Marked out of 1.00

Flag question Question text

Gross domestic product: Select one: a. is a flow variable. b. is a stock variable. c. could be either a flow variable or a stock variable depending on the time period considered. d. is neither a flow nor a stock variable; it is a statistic. Clear my choice

Question 45 Not yet answered Marked out of 1.00

Flag question Question text

Which of the following statements is true of the economy in the long run? In the long run, I. real GDP eventually moves to potential because all wages and prices are assumed to be flexible. II. the economy can achieve its natural level of employment and potential output at any price level. III. there is no cy...