21) In an open economy, private saving, , is equal to A) I – CA + (G – T). B) I + CA – (G – T). C) I + CA + (G – T). D) I – CA – (G – T). E) I + CA + (G + T).     22) Ricardian equivalence argues that when the government cuts taxes and […]

    61) Bubba’s Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill. This is an example of A) arbitrage. B) two-part tariff pricing. C) price discrimination. D) odd pricing.     62) Bubba’s Hula Shack bar and bistro has begun giving customers who […]

    66) A country reports the total expenditures on the fixed CPI basket for the past three years. The cost of the CPI basket in 2010 was $23,000, the cost of the CPI basket for the reference base period, 2011, was $23,805, and the cost of the CPI basket in 2012 was $24,500. The CPI for 2010 is A) 96.6. B) 100.0. C) 103.5. […]

    31.              Given that 4NH3(g) + 5O2(g) ? 4NO(g) + 6H2O(g), if 32.5 g of NH3 react with sufficient oxygen, how many grams of H2O will be formed? A)  51.6 g    B)  8.60 g    C)  34.4 g    D)  206.4 g    E)  878 g   32.              When copper reacts with sulfur at high temperature, copper(I) sulfide is formed. 2Cu(s) + S(s) ?  Cu2S(s) If the […]

    11) Compared to a monopolistic competitor, a monopolist faces A) a more elastic demand curve. B) a more inelastic demand curve. C) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices. D) a demand curve that has a price elasticity coefficient of zero.     12) A monopoly differs from monopolistic competition in that A) […]

  11) Which of the following scenarios describes an action that is NOT rational from an economic point of view? A) After drinking one martini (shaken, not stirred), James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first. B) Eric buys a replacement ticket to the basketball game after he […]

  Table 14-3     Suppose OPEC has only two producers, Saudi Arabia and Nigeria. Saudi Arabia has far more oil reserves and is the lower cost producer compared to Nigeria. The payoff matrix in Table 14-3 shows the profits earned per day by each country. “Low output” corresponds to producing the OPEC assigned quota and “high output” corresponds to producing the maximum capacity beyond […]

    21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming A) the two previous hamburgers. B) all three hamburgers. C) just the third hamburger. D) just the second hamburger. E) the third hamburger minus the pleasure from consuming zero hamburgers. 22) What typically happens to benefits as the amount of an […]

    51) A student at New York University used to take the Redhound bus when she visited her grandmother in Boston. After graduating, although the bus fare and the plane fare were the same as they were when she was a student with a well-paid job on Wall Street, she now takes the plane to Boston to visit her grandmother. For this student, travel […]

    71) In December 2009, currency was $400 billion, traveler’s checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,00 billion, time deposits were $1,500 billion; and money market funds were $1,200 billion. What was the M1 in December 2009? A) M1 = $405 billion B) M1 = $1,005 billion C) M1 = $3,005 billion D) […]