Question : 11) Assume there no government or foreign sector. If the : 1381122

11) Assume there is no government or foreign sector. If the MPS is 0.05, the multiplier is

A) 0.95.

B) 10.

C) 20.

D) 50.

12) Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by

A) $1 billion.

B) $5 billion.

C) $10 billion.

D) $100 billion.

13) Assume there is no government or foreign sector. If the MPS is 0.2, a $40 billion decrease in planned investment will cause aggregate output to decrease by

A) $20 billion.

B) $50 billion.

C) $80 billion.

D) $200 billion.

14) Assume there is no government or foreign sector. If the multiplier is 4, a $20 billion increase in investment will cause aggregate output to increase by

A) $5 billion.

B) $20 billion.

C) $40 billion.

D) $80 billion.

Refer to the information provided in Figure 8.12 below to answer the questions that follow.

Figure 8.12

15) Refer to Figure 8.12. What is the equation for aggregate expenditure AE1?

A) AE1 = 1,000 + 0.5Y.

B) AE1 = 600 + 0.4Y.

C) AE1 = 1,000 + 0.6Y.

D) AE1 = 400 + 0.4Y.

16) Refer to Figure 8.12. Suppose AE1, AE2 and AE3 are parallel. What is the value of Point B?

A) $750 million

B) $800 million

C) $900 million

D) cannot be determined from the given information

17) Refer to Figure 8.12. Suppose AE1, AE2 and AE3 are parallel. What is the value of Point A?

A) $450 million

B) $510 million

C) $540 million

D) cannot be determined from the given information

18) Refer to Figure 8.12. Suppose the economy’s aggregate expenditure line is AE1. A $10 million increase in planned investment causes aggregate equilibrium output to increase to

A) $1,010.0 million.

B) $1,016.7 million.

C) $1,125.5 million.

D) $1,215.6 million.

19) As the MPS decreases, the multiplier will

A) increase.

B) decrease.

C) remain constant.

D) either increase or decrease depending on the size of the change in investment.

20) Midwest State University in Nebraska is trying to convince Nebraska taxpayers that the tax dollars spent at Midwest State University are well spent. One of the university’s arguments is that for every $1 spent by Midwest State University an additional $5 of expenditures are generated within Nebraska. Midwest State University is arguing that the multiplier for their expenditures is

A) 0.2.

B) 1.

C) 4.

D) 5.

21) If autonomous consumption increases, the size of the multiplier would

A) increase.

B) decrease.

C) remain constant.

D) either increase or decrease depending on the size of the change in autonomous consumption.

22) In practice, the actual size of the multiplier is about

A) 1.

B) 1.4.

C) 2.

D) 4.

23) Related to the Economics in Practice on p. 472: According to the “paradox of thrift,” as individuals increase their saving,

A) income in the economy increases because there is more money available for firms to invest.

B) income in the economy increases because interest rates will fall and the economy will expand.

C) income in the economy will remain constant because the change in consumption equals the change in saving.

D) income in the economy will fall because the decreased consumption that results from increased saving causes the economy to contract.

24) Related to the Economics in Practice on p. 472: According to the “paradox of thrift,” increased efforts to save will cause a(n)

A) increase in income and an increase in overall saving.

B) increase in income but no overall change in saving.

C) decrease in income and an overall decrease in saving.

D) decrease in income but an increase in saving.

Continue to order Get a quote

July 1, 2023

41) The above figure shows the production possibility frontier for an economy. The point or points that are attainable and production efficient are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

42) The above figure shows the production possibility frontier for an economy. The point or points that are attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

43) The above figure shows the production possibility frontier for an economy. The point or points that are NOT attainable are

A) points B and C.

B) points A, B, and C.

C) point E.

D) points A, B, C, and D.

E) points A and D.

44) In order for Ireland to grow more potatoes, wool production must decrease. This situation is an example of

A) producing at a point that lies beyond the PPF.

B) zero opportunity cost.

C) opportunity benefit.

D) a free lunch.

E) a tradeoff.

45) As we move along the production possibilities frontier,

A) the production of one good increases as the production of the other good decreases.

B) the possibilities of tradeoffs diminish.

C) a tradeoff is not possible because nations need all goods.

D) more of both goods can be produced.

E) less of both goods can be produced.

46) Which of the following statements is correct?

A) If capital is idle, the economy is producing at its full potential.

B) The production possibilities frontier shows that there are no limits to production.

C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.

D) Any point on or within the PPF is production efficient.

E) None of the above answers is correct.

47) When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods

A) must increase.

B) must decrease.

C) must remain the same.

D) must change, but they might increase or decrease.

E) might increase if the nation can produce more efficiently.

48) The negative slope of the production possibilities frontier represents the idea

A) that free lunches are possible.

B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.

C) of unemployment.

D) of inefficient production.

E) that prices rise as less is produced.

49) A movement from one point on a production possibilities frontier to another represents

A) a tradeoff.

B) a free lunch.

C) full employment of labor but not capital.

D) unemployment.

E) an advance in technology.

50) The saying "There's no such thing as a free lunch," applies

A) when there is some unemployment.

B) on the production possibilities frontier.

C) to unattainable combinations of goods and services.

D) when more of one good can be produced without decreasing production of another.

E) at all points inside the PPF.

July 1, 2023

31) Steve, an HR supervisor at APEX construction, has recently noticed a shortage of skilled workers due to a building boom in the area. He must find new workers quickly because it is uncertain how long the boom will last. He decides to hire nontraditional laborers. The most likely disadvantage of using nontraditional laborers is the:

A) high costs of making reasonable accommodations.

B) additional training that will be necessary.

C) extensive involvement of the EEOC.

D) high advertising costs.

32) Which of the following is primarily associated with hiring external candidates?

A) Lowers training costs

B) Provides new ideas and perspectives

C) Decreases recruitment time and expense

D) Motivates other workers to strive for advancement

33) One of the advantages of promoting internal candidates is:

A) rejuvenating work units.

B) reducing training costs.

C) fostering innovative ideas.

D) reducing employee turnover.

34) Tatiana needs to hire a line manager and has a very small recruiting budget. The firm's current employees don't feel they have many advancement opportunities. It would be best for Tatiana to recruit:

A) internally.

B) externally.

C) former military members.

D) nontraditional workers.

35) Which of the following is most likely a true statement about recruiting?

A) Internal recruiting enhances organizational communication.

B) External recruiting fills positions quickly and inexpensively.

C) External recruiting promotes innovation and new perspectives.

D) Internal recruiting requires developing new organizational policies.

36) Which of the following is most likely a true statement about recruiting employees in a protected class?

A) The recruiting message should be targeted to specific minority groups.

B) All private sector firms are legally required to have an affirmative action policy.

C) Using media that focuses on minorities is an effective way to recruit protected group members.

D) Intense minority competition for jobs ensures a large pool of qualified and motivated applicants.

37) Which of the following must have written affirmative action plans?

A) Non-profit groups

B) Government contractors

C) Privately-held corporations

D) Publicly-held corporations

38) In human resource planning the answer to the question, "How many candidates should we recruit?":

A) is based on the firm's affirmative action plan.

B) comes from the yield ratio calculated in the forecast.

C) is directed by EEO consideration and the size of the labor pool.

D) depends on the state of the labor pool and the current economy.

39) The offer-to-acceptance ratio at Central Manufacturing is 6:1. How many offers will the firm need to make in order to fill 80 positions?

A) 120

B) 240

C) 480

D) 540

40) After an extensive recruiting effort, your company has contacted 225 interested individuals. At the application deadline, you have received 75 applications. What is your contact-to-applicant ratio?