Econ Final

68 Questions  I  By AshyMSU on April 20, 2011

  

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1.  Which of the following best characterizes economists' attitudes toward price discrimination?
A.
B.
C.
D.
2.  Suppose hot dogs to be an inferior good. An increase in consumer incomes, other things being equal, is likely to cause which of the following?
A.
B.
C.
D.
3.  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
A.
B.
C.
D.
4.  When the economy is in a liquidity trap, which of the following is likely to increase fastest?
A.
B.
C.
D.
5.  An open market purchase by the Fed is an example of which of the following?
A.
B.
C.
D.
6.  If domestic product = 1,000, consumption = 800, planned investment = 100, government purchases = 150, exports =50, and imports = 75, then unplanned inventory investment must be
A.
B.
C.
D.
7.  The economic definition of price discrimination is :
A.
B.
C.
D.
8.  A limit pricing strategy implies charging a price that is less than the 
A.
B.
C.
D.
9.  Which of the following types of unemployment can be less than 0 at the peak of the business cycle?
A.
B.
C.
D.
10.  Which of the following is considered an outside lag of economic policy?.
A.
B.
C.
D.
11.  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
A.
B.
C.
D.
12.  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?
A.
B.
C.
D.
13.  Proponents of protectionism commonly base their case on
A.
B.
C.
D.
14.  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?
A.
B.
C.
D.
15.  A monopolist than wants to maximize profits should produce where:
A.
B.
C.
D.
16.  When the economy approaches the peak of a business cycle
A.
B.
C.
D.
17.  Of the following persons, which one would be officially classified as unemployed?
A.
B.
C.
D.
18.  An increase in the cost of raising hogs, other things being equal, would be likely to affect the price of bacon via
A.
B.
C.
D.
19.  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?
A.
B.
C.
D.
20.  A firm is said to experience economies of scale over the range of output for which long-run average cost
A.
B.
C.
D.
21.  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
A.
B.
C.
D.
22.  The cap-and-trade appraoch is sometimes opposed by environmentalists because they
A.
B.
C.
D.
23.  The "other things being equal" clause in the law of demand covers
A.
B.
C.
D.
24.  Which of the following is likely to make tacit coordination easier in an oligopolistic market?
A.
B.
C.
D.
25.  If the nomminal interest rate is 6 percent and the inflation rate is 8 percent, the real rate of interest is 
A.
B.
C.
D.
26.  Which of the following passes through a point of the long-run equilibrium?
A.
B.
C.
D.
27.  Which of the following market structures is likely to have the most barriers to entry?
A.
B.
C.
D.
28.  If a perfectly competitive firm is operating at a point where marginal cost and product price are between average variable cost and average total cost, its accounting profit must be
A.
B.
C.
D.
29.  Aggregate concentration is a concept that applies to
A.
B.
C.
D.
30.  Which of the following woudl be an example of "spontaneous order"?
A.
B.
C.
D.
31.  Which of the following best describes the views of economists who favor policy rules?
A.
B.
C.
D.
32.  An industry in which one firm has a 20 percent share of the market and eight other firms each have a 10 percent share has a Herfindahl index of
A.
B.
C.
D.
33.  At an output of 100 units, a monopolist's marginal cost is $33, its marginal revenue is $33, its average variable cost is $30, and its average total cost is $38. To maximize profit or minimize loss in the short run, what should the firm do?
A.
B.
C.
D.
34.  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
A.
B.
C.
D.
35.  Which of the following tends to increase during hyperinflation?
A.
B.
C.
D.
36.  A tax on imports is known as a: 
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B.
C.
D.
37.  If the equilibrium price of natural gas is $2.50 per thousand cubic feet and a price ceiling is imposed of $3 per thousand cubic feet, the likely result will be
A.
B.
C.
D.
38.  The phenomenon of the "twin deficits" refers to a situation where there is a government budget deficit and
A.
B.
C.
D.
39.  In a certain year, the economy has a negative output gap and a buget deficit of $100 billion. If taxes and spending laws were the same, but real output were at its natural level, the budget deficit would be $25 billion. From this information, it appears that in this year the economy has
A.
B.
C.
D.
40.  If discouraged workers were classified as part of the labor force and unemployed, the unemployment rate would be
A.
B.
C.
D.
41.  If there is an increase in demand in a perfectly competitive industry
A.
B.
C.
D.
42.  The quantity of output where the marginal cost curve stops decrease and begins to increase corresponds with the output where:
A.
B.
C.
D.
43.  Given identical marginal cost and demand curves, simple monopoly, compared to perfect competition, will result in a lower
A.
B.
C.
D.
44.  A point representing 500 roast turkey dinners and 600 steak dinners lies outside the production possibilty frontier of Joe's Restaurant, given the factors of production and technology available to it. This means that
A.
B.
C.
D.
45.  An industry with an eight-firm concentration ratio of 95 percent and a formal agreement on prices and output among the top eight firms would best be described as
A.
B.
C.
D.
46.  Which of the following best characterizes the official policy of the Federal Reserve regarding asset bubbles, as implemented during the period before the recession that started at the end of 2007? 
A.
B.
C.
D.
47.  A monopoly that is protected by legal restrictions on competition known as a(n)
A.
B.
C.
D.
48.  Which of the following statements is true of MC > ATC?
A.
B.
C.
D.
49.  In long-run equilibrium for a perfectly competitive firm, ATC equals:
A.
B.
C.
D.
50.  At the market equilibrium in a perfectly competitive market, consumer surplus is
A.
B.
C.
D.
51.  Suppose the target reserve ratio for the banking system is 10 percent and deposits are the only form of money. If the central bank supplies $1,000 in new reserves though an open market operation, the money stock will increase by how much after bankds use the new reserves as a basis for additional loans?
A.
B.
C.
D.
52.  On the whole, it appears that inside and outside lags for fiscal policy are 
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B.
C.
D.
53.  Pollution is an example of which of the following?
A.
B.
C.
D.
54.  A country that experiences a period of falling prices accompanied by falling real output and rising unemployment is suffering from
A.
B.
C.
D.
55.  Which of the following is true about a simple monopolist in long-run equilibrium?
A.
B.
C.
D.
56.  The total of consumer plus producer surplus under simple monopoly will tend to be 
A.
B.
C.
D.
57.  Which of the following best describes a fixed exchange rate target?
A.
B.
C.
D.
58.  Assume an increase in the price of beef increases the demand for pork. Restoration of equilibrium in the pork market will require
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B.
C.
D.
59.  If firms in a monopolistically competitive industry are earning pure economic profits in short-run equilibrium, we will expect the number of firms to
A.
B.
C.
D.
60.  If a pure monopolist can sell 100 units of output at $50 per unit and 101 units of output at $49.99 per unit, marginal revenue in that range of output is approximately
A.
B.
C.
D.
61.  If the price of leather increases, other things being equal, which of the following would be the most likely initial effect?
A.
B.
C.
D.
62.  A perfectly competitive firm's short-run supply curve is best described as
A.
B.
C.
D.
63.  Which of the following describes a special type of expansionary monetary policy that can be used even when nominal interest rates are near the zero interest rate bound?
A.
B.
C.
D.
64.  Because of the multiplier effect, a $100 increase in planned investment tends ot cause an increase of more than $100 in 
A.
B.
C.
D.
65.  If planned investment equals saving, government purchases equal net taxes, and the economy's exports and imports are equal, then
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B.
C.
D.
66.  If a firm has total revenues of $100 million, explicit costs of $90 million, and implicit costs of $20 million, its pure economic profit is
A.
B.
C.
D.
67.  Which of the following events comes first in the annual Federal budget cycle?
A.
B.
C.
D.
68.  The expected level of input prices can be determined by looking at the intersection of the 
A.
B.
C.
D.
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