Econ Final

68 Questions  I  By AshyMSU

  
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1.  According to international trade theory, a country should
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2.  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
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B.
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D.
3.  Rising marginal cost of production is due primarily to: 
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D.
4.  Which of the following is best represented by a positively sloped curve?
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5.  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
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D.
6.  Which of the following market structures is likely to have the most barriers to entry?
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D.
7.  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.
8.  The marginal external cost of pollution means
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9.  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?
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10.  In the absence of trade, world production will tend to be
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11.  Which of the following methods of pollution control have been tried in the U.S.?
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12.  An unexpected increase in the rate of inflation will tend to
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13.  During the Great Depression of the 1930's 
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14.  Which of the following is key to increased standards of living in the long run?
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15.  Which of the following will cause a shift in the long-run aggregate supply curve?
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16.  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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17.  An increase in the cost of raising hogs, other things being equal, would be likely to affect the price of bacon via
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18.  If the short-run  aggregate supply curve intersects the aggregate demand curve at a point to the right of the natural level of real output, then, over time, the expected level of input prices will tend to
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D.
19.  On the whole, it appears that inside and outside lags for fiscal policy are 
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20.  Starting from a point of long-run equilibrium, the intial effects of demand-side inflation would include an increase in
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21.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
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22.  Suppose that during a recession, a country has an output gap of $100 billion. In order to close the output gap using fiscal policy, it must increase government purchases
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23.  Which of the following types of unemployment can be less than 0 at the peak of the business cycle?
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24.  Where is the cap-and-trade approach used most extensively for carbon emissions as of 2008? 
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25.  In long-run equilibrium under monopolistic competition, which of the following is true?
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26.  Which of the following might cause firms in more concentrated industries to earn higher rates of return, on the average, than firms in less concentrated industries?
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27.  If a country has an unsustainable debt pyramid, it must
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28.  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?
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29.  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?
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30.  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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31.  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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32.  An increase in unemployment payments that occurs when the economy enters a recession, without any action by Congress, is an example of 
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33.  Trade in meat and wheat between two countries is least likely to be profitable if
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D.
34.  Which of the following disciplines relies on theories to explain how facts are related?
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35.  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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36.  Scarcity is
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37.  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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38.  Domestic product equals
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39.  A monopolist than wants to maximize profits should produce where:
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40.  The phenomenon of the "twin deficits" refers to a situation where there is a government budget deficit and
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41.  If firms in a monopolistically competitive industry are earning pure economic profits in short-run equilibrium, we will expect the number of firms to
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42.  Which of the following is considered an outside lag of economic policy?.
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43.  If the price level increases, the real value of paper currency held by consumers
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44.  The government's primary budget deficit takes into account all expenditures except which of the following?
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45.  The minimum efficient scale for a firm is the level of output at which 
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46.  Which of the following is likely to make tacit coordination more difficult in an oligopolistic market?
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47.  If the nomminal interest rate is 6 percent and the inflation rate is 8 percent, the real rate of interest is 
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48.  As a percentage of GDP, which of the following is larger in China than in the United States?
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49.  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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50.  Domestic product minus planned expenditure is equal to
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51.  Which of the following actions by the Fed will tend to cause the money stock to expand?
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D.
52.  The required-reserve ratio is the minimum reserves that the central bank requires a bank or thrift to hold stated as a percentage of
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53.  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?
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54.  Which of the following produces an effect that is properly represented by a movement along a given aggregate demand curve?
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55.  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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56.  If there is an increase in demand in a perfectly competitive industry
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57.  A flow of funds from financial markets to the government indicates that 
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58.  Policies related to the government's budget are known as
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59.  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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60.  Which of the following best characterizes economists' attitudes toward price discrimination?
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61.  In the United States the interbank loan market where banks borrow reserves from one another is called
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62.  The money multiplier is 5, a $100,000 open market purchase by the Fed will cause the money stock to
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63.  A perfectly competitive firm sells its output at $40 per unit. At 100 units of output, it has an average total cost of $40. Marginal cost is equal to average total cost at that point. To maximize profit, what should the firm do?
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64.  Which of the following would lead to increased market concentration?
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65.  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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66.  Using Qs to indicate quantity supplied and Qd to indicate quantity demanded, which of the following circumstances would be likely to produce an upward movement of the price of a good?
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D.
67.  The "other things being equal" clause in the law of demand covers
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68.  The term frictional unemployment refers to workers
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