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Econ Final

68 Questions  I  By AshyMSU
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1.  If the equilibrium price of natural gas is $2.50 per thousand cubic feet and a price ceiling is imposed of $3 per thousand cubic feet, the likely result will be
A.
B.
C.
D.
2.  A perfectly competitive firm sells its output for $50 a unit. At 1,000 units of output, marginal cost is $40 and is increasing, average variable cost is $35, and average total cost is $60. To maximize short-run profit, what should the firm do?
A.
B.
C.
D.
3.  Which of the following methods of pollution control have been tried in the U.S.?
A.
B.
C.
D.
4.  Which of the following remains constant at all points on a given aggregate demand curve?
A.
B.
C.
D.
5.  According to the Coase theorem, private negotion will lead to efficient resolution of pollution problems
A.
B.
C.
D.
6.  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.
7.  A Taylor rule favors use of which of the following intermediate targets byt he central bank?
A.
B.
C.
D.
8.  Domestic product equals
A.
B.
C.
D.
9.  When the economy approaches the peak of a business cycle
A.
B.
C.
D.
10.  If the U.S. were to relax it's immigration restrictions, we might expect
A.
B.
C.
D.
11.  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?
A.
B.
C.
D.
12.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
A.
B.
C.
D.
13.  The money multiplier is 5, a $100,000 open market purchase by the Fed will cause the money stock to
A.
B.
C.
D.
14.  Which of the following is most frequently used monetary tool used by the Fed?
A.
B.
C.
D.
15.  The cap-and-trade system controls pollution through
A.
B.
C.
D.
16.  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.
17.  Because of the multiplier effect, a $100 increase in planned investment tends ot cause an increase of more than $100 in 
A.
B.
C.
D.
18.  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?
A.
B.
C.
D.
19.  Which of the following would lead to a contraction in planned expenditure?
A.
B.
C.
D.
20.  Which of the following is an example of a supply shock that would shift the aggregate supply curve upward?
A.
B.
C.
D.
21.  The term "bank" in broad terms, as used in this chapter, refers to which of the following?
A.
B.
C.
D.
22.  Which of the following is true of a perfect competitor but not of a pure monopolist?
A.
B.
C.
D.
23.  If the Fed chose to increase the rate it charges banks on loans of resrves, the money supply would:
A.
B.
C.
D.
24.  If a pure monopolist can sell 100 units of output at $50 per unit and 101 units of output at $49.99 per unit, marginal revenue in that range of output is approximately
A.
B.
C.
D.
25.  Which of the following produces an effect that is properly represented by a movement along a given aggregate demand curve?
A.
B.
C.
D.
26.  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.
27.  Which of the following is true about a simple monopolist in long-run equilibrium?
A.
B.
C.
D.
28.  On the whole, it appears that inside and outside lags for fiscal policy are 
A.
B.
C.
D.
29.  Scarcity is
A.
B.
C.
D.
30.  A monopoly that is protected by legal restrictions on competition known as a(n)
A.
B.
C.
D.
31.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
A.
B.
C.
D.
32.  If total investment exceeds saving, 
A.
B.
C.
D.
33.  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.
34.  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?
A.
B.
C.
D.
35.  The term frictional unemployment refers to workers
A.
B.
C.
D.
36.  According to international trade theory, a country should
A.
B.
C.
D.
37.  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.
38.  Which of the following markets can contain a number of firms producing differentiated products?
A.
B.
C.
D.
39.  Economists who have made empirical studies of the relationship between concentration and market performance have generally looked at the data relating to
A.
B.
C.
D.
40.  Investment, as the term is used in economics, means
A.
B.
C.
D.
41.  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.
42.  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.
43.  Faster economic growth necessarily causes
A.
B.
C.
D.
44.  Monetizing the deficit refers to:
A.
B.
C.
D.
45.  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.
46.  If the government budget is in surplus by $100 and exports exceed imports by $60, then 
A.
B.
C.
D.
47.  As a percentage of GDP, which of the following is larger in China than in the United States?
A.
B.
C.
D.
48.  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.
49.  Which of the following best describes a fixed exchange rate target?
A.
B.
C.
D.
50.  Which of the following is an example of normative economics
A.
B.
C.
D.
51.  An economic policy is said to improve inefficiency if
A.
B.
C.
D.
52.  A monopolist than wants to maximize profits should produce where:
A.
B.
C.
D.
53.  If the equilibrium price of sugar is 15 cents per pound and government imposes a minimum price of 20 cents per pound, the likely result will be
A.
B.
C.
D.
54.  Purchases of newly produced capital goods are known as
A.
B.
C.
D.
55.  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.
56.  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.
57.  Which of the following tends to increase during hyperinflation?
A.
B.
C.
D.
58.  The government's primary budget deficit takes into account all expenditures except which of the following?
A.
B.
C.
D.
59.  Which of the following is necesssary in order for a monopolist to practice price discrimination?
A.
B.
C.
D.
60.  A recession is a 
A.
B.
C.
D.
61.  Which of the following is not characteristic of perfect competition?
A.
B.
C.
D.
62.  The economic definition of price discrimination is :
A.
B.
C.
D.
63.  The long-run average cost curve
A.
B.
C.
D.
64.  If an individual member of a cartel could be certain of escaping detection, it would be tempted to cheat by 
A.
B.
C.
D.
65.  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.
66.  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?
A.
B.
C.
D.
67.  Trade in meat and wheat between two countries is least likely to be profitable if
A.
B.
C.
D.
68.  The interest rate charged by the Fed on loans of reserve to banks is known as the 
A.
B.
C.
D.
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