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Econ Final

68 Questions  I  By AshyMSU
Econ Final

  
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1.  Which of the following tends to increase during hyperinflation?
A.
B.
C.
D.
2.  Domestic product equals
A.
B.
C.
D.
3.  The phenomenon of the "twin deficits" refers to a situation where there is a government budget deficit and
A.
B.
C.
D.
4.  Which of the following is not a component of domestic product?
A.
B.
C.
D.
5.  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.
6.  Economics profit is calculated as:
A.
B.
C.
D.
7.  In a democracy, which of the following voting groups is most likely to see their desired level of pollution control met?
A.
B.
C.
D.
8.  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.
9.  In Norway, it takes 5 labor hours to produce a ton of wheat and 5 to produce a ton of fish; in Greece it takes 3 labor hours to produce a ton of wheat and 3 to produce a ton of fish. If these are the only two goods and only two trading countries, we would expect
A.
B.
C.
D.
10.  In long-run equilibrium for a perfectly competitive firm, ATC equals:
A.
B.
C.
D.
11.  The tendency of policymakers to delay painful anti-inflation policies until after an election is an example of which of the following?
A.
B.
C.
D.
12.  The quantity of output where the marginal cost curve stops decrease and begins to increase corresponds with the output where:
A.
B.
C.
D.
13.  Which of the following methods of pollution control have been tried in the U.S.?
A.
B.
C.
D.
14.  The Clean Air Act, after amendments in the 1990's, uses which of the following to control acid rain?
A.
B.
C.
D.
15.  At the market equilibrium in a perfectly competitive market, consumer surplus is
A.
B.
C.
D.
16.  Which of the following is true about a simple monopolist in long-run equilibrium?
A.
B.
C.
D.
17.  It is more likely that at least some groups in a country will be hurt by trade
A.
B.
C.
D.
18.  Where is the cap-and-trade approach used most extensively for carbon emissions as of 2008? 
A.
B.
C.
D.
19.  The cap-and-trade system controls pollution through
A.
B.
C.
D.
20.  The total of consumer plus producer surplus under simple monopoly will tend to be 
A.
B.
C.
D.
21.  An open market purchase by the Fed is an example of which of the following?
A.
B.
C.
D.
22.  Which of the following is not characteristic of perfect competition?
A.
B.
C.
D.
23.  Where the marginal cost curve is below the average variable cost curve, 
A.
B.
C.
D.
24.  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.
25.  When the economy is in a liquidity trap, which of the following is likely to increase fastest?
A.
B.
C.
D.
26.  ERB stabilization policy means a policy to combat hyperinflation that is based on
A.
B.
C.
D.
27.  In the United States the interbank loan market where banks borrow reserves from one another is called
A.
B.
C.
D.
28.  Which of the following is necesssary in order for a monopolist to practice price discrimination?
A.
B.
C.
D.
29.  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.
30.  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.
31.  Which of the following is likely to make tacit coordination more difficult in an oligopolistic market?
A.
B.
C.
D.
32.  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.
33.  If the price level increases, the real value of paper currency held by consumers
A.
B.
C.
D.
34.  A graph showing the relationship between planned expenditures on final goods and the price level of final goods is called a 
A.
B.
C.
D.
35.  According to international trade theory, a country should
A.
B.
C.
D.
36.  Long-run equilibrium is possible only when
A.
B.
C.
D.
37.  If the U.S. were to relax it's immigration restrictions, we might expect
A.
B.
C.
D.
38.  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.
39.  Which of the following is an illustration of entrepreneurship?
A.
B.
C.
D.
40.  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.
41.  In long-run equilibrium under monopolistic competition, which of the following is true?
A.
B.
C.
D.
42.  If the money stock (M2) is $400 billion, real income is $500 billion, and the price level is 2.0, then velocity must be
A.
B.
C.
D.
43.  Which of the following adds reserves to the banking system?
A.
B.
C.
D.
44.  Deficits or surpluses of state and local governments
A.
B.
C.
D.
45.  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.
46.  A firm is said to experience economies of scale over the range of output for which long-run average cost
A.
B.
C.
D.
47.  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.
48.  According to a supply and demand analysis, the likely effect of a minimum wage law would be
A.
B.
C.
D.
49.  Which of the following will cause a shift in the long-run aggregate supply curve?
A.
B.
C.
50.  During the Great Depression of the 1930's 
A.
B.
C.
D.
51.  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.
52.  Which of the following is an example of price discrimination?
A.
B.
C.
D.
53.  Policies related to the government's budget are known as
A.
B.
C.
D.
54.  Which of the following would lead to a contraction in planned expenditure?
A.
B.
C.
D.
55.  Which of the following will be true if domestic product exceeds planned expenditure?
A.
B.
C.
D.
56.  The cap-and-trade appraoch is sometimes opposed by environmentalists because they
A.
B.
C.
D.
57.  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.
58.  Which of the following is an example of normative economics
A.
B.
C.
D.
59.  The money multiplier is 5, a $100,000 open market purchase by the Fed will cause the money stock to
A.
B.
C.
D.
60.  A limit pricing strategy implies charging a price that is less than the 
A.
B.
C.
D.
61.  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.
62.  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.
63.  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.
64.  A Taylor rule favors use of which of the following intermediate targets byt he central bank?
A.
B.
C.
D.
65.  Proponents of protectionism commonly base their case on
A.
B.
C.
D.
66.  Which of the following market structures is likely to have the most barriers to entry?
A.
B.
C.
D.
67.  Which of the following is considered an outside lag of economic policy?.
A.
B.
C.
D.
68.  If the government budget is in surplus by $100 and exports exceed imports by $60, then 
A.
B.
C.
D.
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