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Econ Final

68 Questions  I  By AshyMSU
Econ Final

  
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1.  Starting from a point of long-run equilibrium, the intial effects of demand-side inflation would include an increase in
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B.
C.
D.
2.  Which of the following is key to increased standards of living in the long run?
A.
B.
C.
D.
3.  Investment, as the term is used in economics, means
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B.
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D.
4.  If a monopolist is operating at a point where its marginal revenue curve is less than marginal cost but P is greater than AVC, the firm should do which of the following?
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B.
C.
D.
5.  Assume that a fixed cost, such as property taxes, increases for firms in a perfectly competitive industry. What will be the short-run impact on the output level of individual firms?
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B.
C.
D.
6.  Environmental problems and policies provide numerous examples of
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D.
7.  If consumer incomes go up, which of the following is initially most likely?
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B.
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8.  The long-run average cost curve
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9.  If an individual member of a cartel could be certain of escaping detection, it would be tempted to cheat by 
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D.
10.  Which of the following disciplines relies on theories to explain how facts are related?
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11.  The "other things being equal" clause in the law of demand covers
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D.
12.  U.S. government reforms of social secutiry and Medicare that increased revenues for these programs or reduced expenditures on them would be an example of which of the following?
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B.
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D.
13.  In the United States the interbank loan market where banks borrow reserves from one another is called
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D.
14.  During a visit to Havana, Cuba, you notice long lines outside every butcher shop. The most reasonable conclusion to be drawn from this observation is that the
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D.
15.  If there is an increase in demand in a perfectly competitive industry
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16.  As the economy moves up and to the left along the aggreagte demand curve from a short-run equilibrium to a new long-run equilibrium
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17.  In a two-good, two-country world, international trade can increase
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D.
18.  Trade in meat and wheat between two countries is least likely to be profitable if
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D.
19.  A graph showing the relationship between planned expenditures on final goods and the price level of final goods is called a 
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20.  Where the marginal cost curve is below the average variable cost curve, 
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21.  Karen spends $20 to hire a tutor to help her prepare for her economics final. This expense should be considered part of
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D.
22.  The Clean Air Act, after amendments in the 1990's, uses which of the following to control acid rain?
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D.
23.  The law of diminishing returns implies that the marginal physical product curve must 
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D.
24.  If a firm decided it could save on total cost by unplugging itself from the local electric utility and buying its own generating equipment, we could assume that
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25.  Economics profit is calculated as:
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D.
26.  If the equilibrium price of sugar is 15 cents per pound and government imposes a minimum price of 20 cents per pound, the likely result will be
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D.
27.  In Norway, it takes 5 labor hours to produce a ton of wheat and 5 to produce a ton of fish; in Greece it takes 3 labor hours to produce a ton of wheat and 3 to produce a ton of fish. If these are the only two goods and only two trading countries, we would expect
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28.  A monopolist than wants to maximize profits should produce where:
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D.
29.  A tax on imports is known as a: 
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30.  Which of the following is an example of normative economics
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31.  Which of the following markets can contain a number of firms producing differentiated products?
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32.  Because of the multiplier effect, a $100 increase in planned investment tends ot cause an increase of more than $100 in 
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33.  A firm in a perfectly competitive industry that wants to maximize profits will produce at an output level where:
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D.
34.  Which of the following is an example of a supply shock that would shift the aggregate supply curve upward?
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D.
35.  An economic policy is said to improve inefficiency if
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36.  Suppose the Fed announces a target federal funds rate of 3 percent. Changing market conditions then increase banks' demand for reserves. Which of the following actions would help the Fed to hold the federal funds rate close to its target?
A.
B.
C.
D.
37.  If discouraged workers were classified as part of the labor force and unemployed, the unemployment rate would be
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D.
38.  Policies related to the government's budget are known as
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D.
39.  Observations of the U.S. economy suggest that in the short run, when the price level of final goods changes, input prices tend to adjust
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40.  A country that experiences a period of falling prices accompanied by falling real output and rising unemployment is suffering from
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D.
41.  Budget items like social security and Medicare that are not subject to annual appropriations are known as
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42.  Which of the following is not a component of domestic product?
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43.  Which of the following remains constant at all points on a given aggregate demand curve?
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44.  If a country exports products of land-intensive indutries and imports products of labor-intensive industires, we would expect that the county's 
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D.
45.  In 2003, it cost $185 to purchase the same basket of consumer goods that could have been purchased for $100 in 1982. A worker who earned $800 per week in 1982 and $1,550 per week in 2003, therefore, would have experienced
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46.  A recession is a 
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47.  Other things being equal, which of the following would tend to cause the British pound to appreciate?
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D.
48.  Which of the following is an example of price discrimination?
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B.
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D.
49.  The country of Dispepsia is experiencing run-away inflation. As a strong measure to stabilize prices, the Dispepsian central bank could try which of the following policies?
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D.
50.  Suppose the government passes corporate accounting reforms that improve the investment climate and strengthen business confidence. Taking the multiplier effect into account, which of the following is likely to follow?
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D.
51.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
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D.
52.  Which of the following is a source of diseconomies of scale?
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D.
53.  Which of the following is likely to be greater if accommodating policy is used after a supply shock than if there is no accommodating policy?
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D.
54.  Monetizing the deficit refers to:
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55.  Which of the following is most likely to increase as a country moves from price stability into a period of demand-side deflation?
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D.
56.  If the level of final goods prices is higher than the expected level of input prices at the point of short-run equililbrium, we can expect which of the following to occur as the economy adjusts?
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B.
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D.
57.  Proponents of protectionism commonly base their case on
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58.  It is more likely that at least some groups in a country will be hurt by trade
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59.  If the U.S. were to relax it's immigration restrictions, we might expect
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60.  A country that has a government budget deficit and domestic investment that exceeds domestic saving will also have
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61.  Which of the following best describes the views of economists who favor policy rules?
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62.  When the economy approaches the peak of a business cycle
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63.  Suppose John can sew four shirts per day or knit six caps per day, whereas Jane can sew three shirts per day or knit for caps per day. It can then be said that
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64.  The interest rate charged by the Fed on loans of reserve to banks is known as the 
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D.
65.  When the economy is in a liquidity trap, which of the following is likely to increase fastest?
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D.
66.  Assume that a variable input price, such as labor wages, rises. What will be the short-run impact on the market price for firms in a perfectly competitive industry?
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B.
C.
D.
67.  The expected level of input prices can be determined by looking at the intersection of the 
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68.  To be officially counted as part of the labor force, a person must be
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D.
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