Econ Final

68 Questions  I  By AshyMSU

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  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.
2.  A bank is subject to a 20 percent required-reserve ratio. When this bank receives a deposit of  $1,000, its 
A.
B.
C.
D.
3.  The law of diminishing returns implies that the marginal physical product curve must 
A.
B.
C.
D.
4.  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.
5.  A Taylor rule favors use of which of the following intermediate targets byt he central bank?
A.
B.
C.
D.
6.  Which of the following passes through a point of the long-run equilibrium?
A.
B.
C.
D.
7.  The long-run average cost curve
A.
B.
C.
D.
8.  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.
9.  Which of the following would lead to a contraction in planned expenditure?
A.
B.
C.
D.
10.  Control of climate change is likely to be a particulary difficult problem for environmental policy because
A.
B.
C.
D.
11.  In the absence of trade, world production will tend to be
A.
B.
C.
D.
12.  U.S. government reforms of social secutiry and Medicare that increased revenues for these programs or reduced expenditures on them would be an example of which of the following?
A.
B.
C.
D.
13.  Which of the following is necesssary in order for a monopolist to practice price discrimination?
A.
B.
C.
D.
14.  Of the following persons, which one would be officially classified as unemployed?
A.
B.
C.
D.
15.  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.
16.  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?
A.
B.
C.
D.
17.  Which of the following events comes first in the annual Federal budget cycle?
A.
B.
C.
D.
18.  Which of the following statements is true of MC > ATC?
A.
B.
C.
D.
19.  An industry in which one firm has a 20 percent share of the market and eight other firms each have a 10 percent share has a Herfindahl index of
A.
B.
C.
D.
20.  Which of the following is not a component of domestic product?
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.  If the Fed chose to increase the rate it charges banks on loans of resrves, the money supply would:
A.
B.
C.
D.
23.  If there is an increase in demand in a perfectly competitive industry
A.
B.
C.
D.
24.  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.
25.  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.
26.  In long-run equilibrium for a perfectly competitive firm, ATC equals:
A.
B.
C.
D.
27.  Which of the following is likely to make tacit coordination more difficult in an oligopolistic market?
A.
B.
C.
D.
28.  If a marginal physical product curve and an average physical product curve were both drawn on a single diagram, 
A.
B.
C.
D.
29.  Suppose the target reserve ratio for the banking system is 10 percent and deposits are the only form of money. If the central bank supplies $1,000 in new reserves though an open market operation, the money stock will increase by how much after bankds use the new reserves as a basis for additional loans?
A.
B.
C.
D.
30.  A firm has total capital of $500 million. The opportunity cost of capital is 12 percent per year. The firm earns an accounting profit of $65 million and has no other implicit costs. Its pure economic profit is
A.
B.
C.
D.
31.  If total investment exceeds saving, 
A.
B.
C.
D.
32.  A monopoly that is protected by legal restrictions on competition known as a(n)
A.
B.
C.
D.
33.  Inflation in the United States was highest, on average, during which of the following periods?
A.
B.
C.
D.
34.  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.
35.  To be officially counted as part of the labor force, a person must be
A.
B.
C.
D.
36.  The term frictional unemployment refers to workers
A.
B.
C.
D.
37.  Which of the following is an example of normative economics
A.
B.
C.
D.
38.  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.
39.  In a two-nation world in which both nations specialize in the production of the product for which they possess a comparative advantage
A.
B.
C.
D.
40.  A limit pricing strategy implies charging a price that is less than the 
A.
B.
C.
D.
41.  Which of the following might cause firms in more concentrated industries to earn higher rates of return, on the average, than firms in less concentrated industries?
A.
B.
C.
D.
42.  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.
43.  Policies related to the government's budget are known as
A.
B.
C.
D.
44.  Which of the following types of unemployment can be less than 0 at the peak of the business cycle?
A.
B.
C.
D.
45.  Aggregate concentration is a concept that applies to
A.
B.
C.
D.
46.  A firm in a perfectly competitive industry that wants to maximize profits will produce at an output level where:
A.
B.
C.
D.
47.  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.
48.  Which of the following is a source of diseconomies of scale?
A.
B.
C.
D.
49.  Which of the following is most likely to increase as a country moves from price stability into a period of demand-side deflation?
A.
B.
C.
D.
50.  Where is the cap-and-trade approach used most extensively for carbon emissions as of 2008? 
A.
B.
C.
D.
51.  Which of the following would be considered an instrument of fiscal policy?
A.
B.
C.
D.
52.  The idea of free trade leading to a "race to the bottom" refers to 
A.
B.
C.
D.
53.  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.
54.  Which of the following methods of pollution control have been tried in the U.S.?
A.
B.
C.
D.
55.  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.
56.  If consumer incomes go up, which of the following is initially most likely?
A.
B.
C.
D.
57.  Which of the following is the most important operating target for the Fed?
A.
B.
C.
D.
58.  Which of the following is a major advantage claimed for the cap-and-trade approach, compared to the command and control approach?
A.
B.
C.
D.
59.  If the government budget is in surplus by $100 and exports exceed imports by $60, then 
A.
B.
C.
D.
60.  Which of the following is not characteristic of perfect competition?
A.
B.
C.
D.
61.  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.
62.  The quantity of output where the marginal cost curve stops decrease and begins to increase corresponds with the output where:
A.
B.
C.
D.
63.  ERB stabilization policy means a policy to combat hyperinflation that is based on
A.
B.
C.
D.
64.  If a country has an unsustainable debt pyramid, it must
A.
B.
C.
D.
65.  Which of the following adds reserves to the banking system?
A.
B.
C.
D.
66.  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.
67.  An economic policy is said to improve inefficiency if
A.
B.
C.
D.
68.  Taking everything into account, which of the following kinds of monopoly is most likely to pose a serious problem of market failure?
A.
B.
C.
D.
Back to top


to post comments.

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz