Econ Final

68 Questions  I  By AshyMSU on April 20, 2011

  
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1.  Which of the following is an example of normative economics
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B.
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D.
2.  The optimal quantity of pollution is found at the point where the marginal cost of pollution abatement curve crosses
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B.
C.
D.
3.  Karen spends $20 to hire a tutor to help her prepare for her economics final. This expense should be considered part of
A.
B.
C.
D.
4.  Let C stand for consumption, I for total investment, G for government purchases, Ex for exports, Im for imports, S for saving, and T for net taxes. Which of the following equations always holds?
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B.
C.
D.
5.  Japan can produce a car in 1,000 hours and a computer in 100 hours. Brazil can produce a car in 2,000 hours and a computer in 250 hours. Which of the following statements is correct?
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B.
C.
D.
6.  A monopolist than wants to maximize profits should produce where:
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B.
C.
D.
7.  The economic definition of price discrimination is :
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B.
C.
D.
8.  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.
9.  The tendency of policymakers to delay painful anti-inflation policies until after an election is an example of which of the following?
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B.
C.
D.
10.  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.
11.  Monetizing the deficit refers to:
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B.
C.
D.
12.  The expected level of input prices can be determined by looking at the intersection of the 
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B.
C.
D.
13.  The law of diminishing returns implies that the marginal physical product curve must 
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C.
D.
14.  Assuming gasoline and tires to be complementary goods, the intial effect on the tire market of an increase in the price of gasoline (other things being equal), would be best described as?
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B.
C.
D.
15.  Which of the following disciplines relies on theories to explain how facts are related?
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D.
16.  If discouraged workers were classified as part of the labor force and unemployed, the unemployment rate would be
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B.
C.
D.
17.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
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B.
C.
D.
18.  Economists who have made empirical studies of the relationship between concentration and market performance have generally looked at the data relating to
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B.
C.
D.
19.  Which of the following is likely to make tacit coordination more difficult in an oligopolistic market?
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B.
C.
D.
20.  In a democracy, which of the following voting groups is most likely to see their desired level of pollution control met?
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B.
C.
D.
21.  Which of the following is best represented by a positively sloped curve?
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D.
22.  According to international trade theory, a country should
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D.
23.  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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B.
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D.
24.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
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D.
25.  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
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B.
C.
D.
26.  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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B.
C.
D.
27.  Which of the following best describes the policy of the Fed?
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B.
C.
D.
28.  Which of the following events comes first in the annual Federal budget cycle?
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C.
D.
29.  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
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B.
C.
D.
30.  During the Great Depression of the 1930's 
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D.
31.  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
A.
B.
C.
D.
32.  Suppose that in year 1, the market exchange rate is 1.4 U.S. dollars per euro, and in year 2, the rate is 1.50 U.S. dollars per euro. Which of the following statements accurately describes the change?
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B.
C.
D.
33.  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
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B.
C.
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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B.
C.
D.
35.  Which of the following could be considered a significant barrier to entry into a market? 
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D.
36.  Which of the following will produce a rightward shift in the aggregate demand curve?
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B.
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D.
37.  A situation in which monetary policy loses its effectiveness, interest rates are low, and people accumulate large amounts of cash is called
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C.
D.
38.  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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39.  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.
40.  Aggregate concentration is a concept that applies to
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D.
41.  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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D.
42.  In a two-good, two-country world, international trade can increase
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D.
43.  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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D.
44.  A country has a large budget deficit that is financed by creation of new money (monetization) . As a result, the country has a serious danger of 
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D.
45.  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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C.
D.
46.  If consumer incomes go up, which of the following is initially most likely?
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D.
47.  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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B.
C.
D.
48.  A tax on imports is known as a: 
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B.
C.
D.
49.  Which of the following is counted as part of M2?
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D.
50.  It is more likely that at least some groups in a country will be hurt by trade
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D.
51.  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.
52.  If planned investment equals saving, government purchases equal net taxes, and the economy's exports and imports are equal, then
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D.
53.  Which of the following is a major advantage claimed for the cap-and-trade approach, compared to the command and control approach?
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D.
54.  If a country has an unsustainable debt pyramid, it must
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D.
55.  Which of the following best characterizes economists' attitudes toward price discrimination?
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D.
56.  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
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D.
57.  In the United States the interbank loan market where banks borrow reserves from one another is called
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D.
58.  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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C.
D.
59.  If the price level increases, the real value of paper currency held by consumers
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C.
D.
60.  Which of the following is likely to make tacit coordination easier in an oligopolistic market?
A.
B.
C.
D.
61.  Domestic product equals
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D.
62.  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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D.
63.  Which of the following is not characteristic of perfect competition?
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D.
64.  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.
65.  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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B.
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D.
66.  Which of the following methods of pollution control have been tried in the U.S.?
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B.
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D.
67.  Policies related to the government's budget are known as
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D.
68.  The money multiplier is 5, a $100,000 open market purchase by the Fed will cause the money stock to
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B.
C.
D.
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