We have sent an email with your new password.


Econ Final

68 Questions  I  By AshyMSU
  • Share This on Twitter
  • +
Online Exam Quizzes & Trivia

   or Create Online Exam
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  Which of the following is an illustration of entrepreneurship?
A.
B.
C.
D.
2.  The idea of free trade leading to a "race to the bottom" refers to 
A.
B.
C.
D.
3.  Market equilibrium
A.
B.
C.
D.
4.  Which of the following will cause a shift in the long-run aggregate supply curve?
A.
B.
C.
5.  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.
6.  A monopolist than wants to maximize profits should produce where:
A.
B.
C.
D.
7.  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.
8.  The required-reserve ratio is the minimum reserves that the central bank requires a bank or thrift to hold stated as a percentage of
A.
B.
C.
D.
9.  In long-run equilibrium under monopolistic competition, which of the following is true?
A.
B.
C.
D.
10.  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
A.
B.
C.
D.
11.  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.
12.  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.
13.  Which of the following passes through a point of the long-run equilibrium?
A.
B.
C.
D.
14.  The long-run average cost curve
A.
B.
C.
D.
15.  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.
16.  Which of the following is the most important operating target for the Fed?
A.
B.
C.
D.
17.  The economic definition of price discrimination is :
A.
B.
C.
D.
18.  Which of the following would be most likely to cause the production possibility frontier for education and cars to shift outward?
A.
B.
C.
D.
19.  Which of the following markets can contain a number of firms producing differentiated products?
A.
B.
C.
D.
20.  A limit pricing strategy implies charging a price that is less than the 
A.
B.
C.
D.
21.  It is more likely that at least some groups in a country will be hurt by trade
A.
B.
C.
D.
22.  Scarcity is
A.
B.
C.
D.
23.  Which of the following actions by the Fed will tend to cause the money stock to expand?
A.
B.
C.
D.
24.  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.
25.  The phenomenon of the "twin deficits" refers to a situation where there is a government budget deficit and
A.
B.
C.
D.
26.  An episode during which real ouput drops below its natural level while unemployment and the price level both rise is best described as
A.
B.
C.
D.
27.  Which of the following events comes first in the annual Federal budget cycle?
A.
B.
C.
D.
28.  Deficits or surpluses of state and local governments
A.
B.
C.
D.
29.  A situation in which monetary policy loses its effectiveness, interest rates are low, and people accumulate large amounts of cash is called
A.
B.
C.
D.
30.  When the economy is in a liquidity trap, which of the following is likely to increase fastest?
A.
B.
C.
D.
31.  The optimal quantity of pollution is found at the point where the marginal cost of pollution abatement curve crosses
A.
B.
C.
D.
32.  The term frictional unemployment refers to workers
A.
B.
C.
D.
33.  Given identical marginal cost and demand curves, simple monopoly, compared to perfect competition, will result in a lower
A.
B.
C.
D.
34.  Which of the following will produce a rightward shift in the aggregate demand curve?
A.
B.
C.
D.
35.  Investment, as the term is used in economics, means
A.
B.
C.
D.
36.  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.
37.  The interest rate charged by the Fed on loans of reserve to banks is known as the 
A.
B.
C.
D.
38.  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.
39.  If the nominal rate of interest is 3 percent and the rate of inflation is -5 percent (5 percent rate of deflation), the real interest rate is
A.
B.
C.
D.
40.  Where the marginal cost curve is below the average variable cost curve, 
A.
B.
C.
D.
41.  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.
42.  Suppose John can sew four shirts per day or knit six caps per day, whereas Jane can sew three shirts per day or knit for caps per day. It can then be said that
A.
B.
C.
D.
43.  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.
44.  The cap-and-trade system controls pollution through
A.
B.
C.
D.
45.  Budget items like social security and Medicare that are not subject to annual appropriations are known as
A.
B.
C.
D.
46.  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?
A.
B.
C.
D.
47.  Long-run equilibrium is possible only when
A.
B.
C.
D.
48.  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.
49.  Which of the following tends to increase during hyperinflation?
A.
B.
C.
D.
50.  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?
A.
B.
C.
D.
51.  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.
52.  Which of the following best describes a fixed exchange rate target?
A.
B.
C.
D.
53.  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.
54.  A flow of funds from financial markets to the government indicates that 
A.
B.
C.
D.
55.  If the price level increases, the real value of paper currency held by consumers
A.
B.
C.
D.
56.  A tax on imports is known as a: 
A.
B.
C.
D.
57.  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.
58.  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?
A.
B.
C.
D.
59.  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.
60.  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.
61.  Policies to control unemployment are primarily a concern of 
A.
B.
C.
D.
62.  Purchases of newly produced capital goods are known as
A.
B.
C.
D.
63.  Which of the following is necesssary in order for a monopolist to practice price discrimination?
A.
B.
C.
D.
64.  Given powers granted to the Fed since 2008, and setting aside extreme crisis conditions, which of the following interest rates would normally be expected to be the highest?
A.
B.
C.
D.
65.  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.
66.  ERB stabilization policy means a policy to combat hyperinflation that is based on
A.
B.
C.
D.
67.  Which of the following will be true if domestic product exceeds planned expenditure?
A.
B.
C.
D.
68.  If the steelworkers' union negotiates a new contract with sharply higher wages, we would expect, once a new equilibrium is reached in the steel market,
A.
B.
C.
D.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz