Econ Final

68 Questions  I  By AshyMSU on April 20, 2011

  

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1.  Which of the following is considered an outside lag of economic policy?.
A.
B.
C.
D.
2.  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.
3.  According to the Coase theorem, private negotion will lead to efficient resolution of pollution problems
A.
B.
C.
D.
4.  As a percentage of GDP, which of the following is larger in China than in the United States?
A.
B.
C.
D.
5.  A tax on imports is known as a: 
A.
B.
C.
D.
6.  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.
7.  A firm in a perfectly competitive industry that wants to maximize profits will produce at an output level where:
A.
B.
C.
D.
8.  The market for hair styling services in a medium- to large-sized community would best be described as which of the following?
A.
B.
C.
D.
9.  Which of the following is true of a perfect competitor but not of a pure monopolist?
A.
B.
C.
D.
10.  A cartel maximizes total profits for its membership by setting output at the point where the industry's marginal cost curve intersects
A.
B.
C.
D.
11.  The marginal external cost of pollution means
A.
B.
C.
D.
12.  Which of the following best describes the views of economists who favor policy rules?
A.
B.
C.
D.
13.  Which of the following is counted as part of M2?
A.
B.
C.
D.
14.  The command-and control approach to pollution control can best be described by which statement?
A.
B.
C.
D.
15.  A Taylor rule favors use of which of the following intermediate targets byt he central bank?
A.
B.
C.
D.
16.  Which of the following economists advocated a policy rule based on a steady rate of growth for the money stock?
A.
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
A.
B.
C.
D.
18.  A monopoly that is protected by legal restrictions on competition known as a(n)
A.
B.
C.
D.
19.  Which of the following actions by the Fed will tend to cause the money stock to expand?
A.
B.
C.
D.
20.  The cap-and-trade appraoch is sometimes opposed by environmentalists because they
A.
B.
C.
D.
21.  Which of the following best characterizes economists' attitudes toward price discrimination?
A.
B.
C.
D.
22.  At the market equilibrium in a perfectly competitive market, consumer surplus is
A.
B.
C.
D.
23.  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.
24.  An unexpected increase in the rate of inflation will tend to
A.
B.
C.
D.
25.  Rising marginal cost of production is due primarily to: 
A.
B.
C.
D.
26.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
A.
B.
C.
D.
27.  If a country exports products of land-intensive indutries and imports products of labor-intensive industires, we would expect that the county's 
A.
B.
C.
D.
28.  When the economy approaches the peak of a business cycle
A.
B.
C.
D.
29.  Which of the following is commonly used to refer to the nation's total output of goods and services, adjusted for inflation?
A.
B.
C.
D.
30.  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?
A.
B.
C.
D.
31.  Where the marginal cost curve is below the average variable cost curve, 
A.
B.
C.
D.
32.  Market equilibrium
A.
B.
C.
D.
33.  Pollution is an example of which of the following?
A.
B.
C.
D.
34.  Which of the following is most frequently used monetary tool used by the Fed?
A.
B.
C.
D.
35.  If the U.S. were to relax it's immigration restrictions, we might expect
A.
B.
C.
D.
36.  If expansionary monetary policy is used to hold real output above its natural level for several years in a row, the result is likely to be
A.
B.
C.
D.
37.  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 
A.
B.
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
A.
B.
C.
D.
39.  The money multiplier is 5, a $100,000 open market purchase by the Fed will cause the money stock to
A.
B.
C.
D.
40.  According to international trade theory, a country should
A.
B.
C.
D.
41.  Of the following persons, which one would be officially classified as unemployed?
A.
B.
C.
D.
42.  Firms in a competitive industry are said to be price takers because:
A.
B.
C.
D.
43.  A country that has a government budget deficit and domestic investment that exceeds domestic saving will also have
A.
B.
C.
D.
44.  Starting from a point of long-run equilibrium, the intial effects of demand-side inflation would include an increase in
A.
B.
C.
D.
45.  The term frictional unemployment refers to workers
A.
B.
C.
D.
46.  In long-run equilibrium for a perfectly competitive firm, ATC equals:
A.
B.
C.
D.
47.  The phenomenon of the "twin deficits" refers to a situation where there is a government budget deficit and
A.
B.
C.
D.
48.  Assume that England and Germany both produce wheat and oatmeal with England possessing the absolute advantage in the production of both wheat and oatmeal and the comparative advantage in wheat. We would expect
A.
B.
C.
D.
49.  Policies related to the government's budget are known as
A.
B.
C.
D.
50.  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.
51.  Economic forecasts tend to be most accurate in which of the following cases?
A.
B.
C.
D.
52.  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?
A.
B.
C.
D.
53.  It takes 5 labor hours to produce a ton of steel in Japan and 3 labor hours in the United States, and it requires 20 labor hours to produce a car in Japan and only 15 labor hours in the United States. If Japan and the United States were the only two countries involved in trade, we would expect
A.
B.
C.
D.
54.  Which of the following types of unemployment can be less than 0 at the peak of the business cycle?
A.
B.
C.
D.
55.  A limit pricing strategy implies charging a price that is less than the 
A.
B.
C.
D.
56.  Given identical marginal cost and demand curves, simple monopoly, compared to perfect competition, will result in a lower
A.
B.
C.
D.
57.  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.
58.  Which of the following will produce a rightward shift in the aggregate demand curve?
A.
B.
C.
D.
59.  If planned investment equals saving, government purchases equal net taxes, and the economy's exports and imports are equal, then
A.
B.
C.
D.
60.  Long-run equilibrium is possible only when
A.
B.
C.
D.
61.  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.
62.  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
A.
B.
C.
D.
63.  To be officially counted as part of the labor force, a person must be
A.
B.
C.
D.
64.  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
A.
B.
C.
D.
65.  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.
66.  An increase in unemployment payments that occurs when the economy enters a recession, without any action by Congress, is an example of 
A.
B.
C.
D.
67.  Which of the following is an example of a supply shock that would shift the aggregate supply curve upward?
A.
B.
C.
D.
68.  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.
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