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Econ Final

68 Questions  I  By AshyMSU
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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
A.
B.
C.
D.
2.  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.
3.  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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B.
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D.
4.  Which of the following would lead to a contraction in planned expenditure?
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B.
C.
D.
5.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
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B.
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D.
6.  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.
7.  Which of the following is a source of diseconomies of scale?
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D.
8.  Which of the following actions by the Fed will tend to cause the money stock to expand?
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B.
C.
D.
9.  To attract the attention of potential customers, U.S. bank spends $500 to hire a band to play at the opening of a branch at the new Walmart shopping center. With regard to the ongoing operations of the new branch, the cost of hiring the band is considered to be
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D.
10.  The marginal external cost of pollution means
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11.  A flow of funds from financial markets to the government indicates that 
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12.  The quantity of output where the marginal cost curve stops decrease and begins to increase corresponds with the output where:
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D.
13.  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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14.  The long-run average cost curve
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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.  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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B.
C.
D.
17.  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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B.
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D.
18.  The market for hair styling services in a medium- to large-sized community would best be described as which of the following?
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B.
C.
D.
19.  Control of climate change is likely to be a particulary difficult problem for environmental policy because
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20.  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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21.  Economics profit is calculated as:
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22.  A tax on imports is known as a: 
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23.  A monopolist than wants to maximize profits should produce where:
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D.
24.  Which of the following is the most important operating target for the Fed?
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D.
25.  Which of the following remains constant at all points on a given aggregate demand curve?
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D.
26.  Which of the following is commonly used to refer to the nation's total output of goods and services, adjusted for inflation?
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27.  Which of the following passes through a point of the long-run equilibrium?
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28.  To be officially counted as part of the labor force, a person must be
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29.  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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D.
30.  Pollution is an example of which of the following?
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31.  Policies to control unemployment are primarily a concern of 
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32.  Which of the following best describes a fixed exchange rate target?
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33.  An economic policy is said to improve inefficiency if
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34.  The cap-and-trade system controls pollution through
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35.  The term "bank" in broad terms, as used in this chapter, refers to which of the following?
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36.  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.
37.  Environmental problems and policies provide numerous examples of
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38.  Which of the following is considered an outside lag of economic policy?.
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39.  If the money stock (M2) is $400 billion, real income is $500 billion, and the price level is 2.0, then velocity must be
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D.
40.  When the economy is in a liquidity trap, which of the following is likely to increase fastest?
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D.
41.  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.
42.  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? 
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43.  Which of the following is counted as part of M2?
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44.  Domestic product equals
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45.  If consumer incomes go up, which of the following is initially most likely?
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D.
46.  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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D.
47.  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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D.
48.  A firm is said to experience economies of scale over the range of output for which long-run average cost
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D.
49.  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.
50.  Which of the following best characterizes economists' attitudes toward price discrimination?
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51.  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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52.  Firms in a competitive industry are said to be price takers because:
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53.  Which of the following produces an effect that is properly represented by a movement along a given aggregate demand curve?
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D.
54.  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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D.
55.  Which of the following tends to increase during hyperinflation?
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56.  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?
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D.
57.  Policies related to the government's budget are known as
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58.  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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59.  Which of the following is true about a simple monopolist in long-run equilibrium?
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60.  It is more likely that at least some groups in a country will be hurt by trade
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61.  Beginning from a point of long-run equilibrium, suppose there is a rightward shift in the aggregate demand curve. In the course of the intial move toa new short-run equilibrium, it is likely that
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62.  A country that has a government budget deficit and domestic investment that exceeds domestic saving will also have
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D.
63.  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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D.
64.  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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65.  Which of the following woudl be an example of "spontaneous order"?
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D.
66.  If there is an increase in demand for the product of a perfectly competitive industry
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67.  The Clean Air Act, after amendments in the 1990's, uses which of the following to control acid rain?
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D.
68.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
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D.
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