11. Which form of love involves high levels of commitment, intimacy, and passion?  A. Companionate love B. Consummate love C. Fatuous love D. Romantic love   12. Shauna and Scott feel like they know everything about one another. They are passionately attracted to each other. But when they are done with college they may part ways as they search for jobs or further education. Shauna and Scott are experiencing:  […]

  31. Which ratio measures the length of time between the purchase of inventory and the eventual collection of cash from sales? A. Quick ratioB. Cash-to-cash operating cycle ratioC. Accounts receivable turnover ratioD. Inventory turnover ratio   32. Partin ManufacturingPartin Manufacturing has the following information available from its 12/31/12 and 12/31/11 financial statements:    12/31/12     12/31/12 Cash $  12,000   Accounts payable $  10,000 Accounts receivable 6,000   Salaries payable […]

  111) With respect to long-run economic growth, one rationale for the idea that there may be increasing marginal returns to investment is that A) as further investment takes place the economy moves down to the right along the marginal product schedule. B) as further investment takes place the economy moves upward to the left along the marginal product schedule. C) the investment costs to […]

    11) Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect A) the labor force participation rate to fall. B) the unemployment rate to fall. C) the unemployment rate to rise. D) no change in the unemployment rate or labor force participation rate.   12) If firms […]

  81) Dr. Goldfinger decides to invest in companies which he believes can “improve the productivity and efficiency” of health care services. How can Dr. Goldfinger strive to achieve this productive efficiency? A) by investing in companies that produce goods and services based on consumer preferences B) by investing in companies that produce goods and services at the lowest possible cost C) by investing in […]

  101) When the labor market is in equilibrium, A) there is excess labor supplied, which keeps real GDP less than potential GDP. B) there is full employment, which means that real GDP equals potential GDP. C) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP. D) the real wage rate rises to allow real […]

  11.Whenamonopolistincreasestheamountofoutputthatitproducesandsells,thepriceofitsoutput a.staysthesame. b.increases. c.decreases. d.mayincreaseordecreasedependingonthepriceelasticityofdemand. 12.A monopoly firmis aprice a.takerandhasnosupplycurve. b.makerandhasnosupplycurve c.takerandhasanupward-slopingsupplycurve. d.makerandhasanupward-slopingsupplycurve. 13.Monopoliesusetheirmarketpowerto a.chargepricesthatequalminimumaveragetotalcost. b.increasethequantitysoldastheyincreaseprice. c.chargeapricethatishigherthanmarginalcost. d.dumpexcesssuppliesoftheirproductonthemarket. 14.Monopolyfirmshave a.downward-slopingdemandcurves,sotheycansellasmuchoutputastheydesireatthemarketprice. b.downward-slopingdemandcurves,sotheycansellonlythespecificprice-quantitycombinationsthatlieonthedemandcurve. c.horizontaldemandcurves,sotheycansellasmuchoutputastheydesireatthemarketprice. d.horizontaldemandcurves,sotheycansellonlyalimitedquantityofoutputateachprice. 15.Whichofthefollowingisnotcorrect? a.Thedemandcurvefacingacompetitivefirmisperfectlyelastic. b.Thedemandcurvefacingamonopolististhemarketdemandcurve. c.Amonopolistcanchargeanypriceandsellanyquantitythatitchooses. d.Amonopolistcanalterthemarketpricebyadjustingthequantitythatitproduces. 16.Whichofthefollowingstatementsiscorrect? a.Thedemandcurvefacingacompetitivefirmishorizontal,asisthedemandcurvefacingamonopolist. b.Thedemandcurvefacingacompetitivefirmisdownwardsloping,whereasthedemandcurvefacingamonopolistishorizontal. c.Thedemandcurvefacingacompetitivefirmishorizontal,whereasthedemandcurvefacingamonopolistisdownwardsloping. d.Thedemandcurvefacingacompetitivefirmisdownwardsloping,asisthedemandcurvefacingamonopolist. 17.Theprofit-maximizationproblemforamonopolistdiffersfromthatofacompetitivefirminwhichofthefollowingways? a.Acompetitivefirmmaximizesprofitatthepointwheremarginalrevenueequalsmarginalcost;amonopolistmaximizesprofitatthepointwheremarginalrevenueexceedsmarginalcost. b.Acompetitivefirmmaximizesprofitatthepointwhereaveragerevenueequalsmarginalcost;amonopolistmaximizesprofitatthepointwhereaveragerevenueexceedsmarginalcost. c.Foracompetitivefirm,marginalrevenueattheprofit-maximizinglevelofoutputisequaltomarginalrevenueatallotherlevelsofoutput;foramonopolist,marginalrevenueattheprofit-maximizinglevelofoutputissmallerthanitisforlargerlevelsofoutput. d.Foraprofit-maximizingcompetitivefirm,thinkingatthemarginismuchmoreimportantthanitisforaprofit-maximizingmonopolist. 18.Competitivefirmsdifferfrommonopoliesinwhichofthefollowingways? (i)Competitivefirmsdonothavetoworryaboutthepriceeffectloweringtheirtotalrevenue. (ii)Marginalrevenueforacompetitivefirmequalsprice,whilemarginalrevenueforamonopolyislessthanthepriceitisabletocharge. (iii)Monopoliesmustlowertheirpriceinordertosellmoreoftheirproduct,whilecompetitivefirmsdonot. a.(i)and(ii)only b.(ii)and(iii)only c.(i)and(iii)only d.(i),(ii),and(iii) 19.Whichofthefollowingisnotadifferencebetweenmonopoliesandperfectlycompetitivemarkets? a.Monopoliescanearnprofitsinthelongrunwhileperfectlycompetitivefirmsbreakeven. b.Monopolieschargeapricehigherthanmarginalcostwhileperfectlycompetitivefirmschargeapriceequaltomarginalcost. c.Monopolieschoosetoproducethequantityatwhichmarginalrevenueequalsmarginalcostwhileperfectlycompetitivefirmsdonot. d.Monopoliesfacedownwardslopingdemandcurveswhileperfectlycompetitivefirmsfacehorizontaldemandcurves. 20.Competitivefirmshave a.downward-slopingdemandcurves,andtheycansellasmuchoutputastheydesireatthemarketprice. b.downward-slopingdemandcurves,andtheycansellonlyalimitedquantityofoutputateachprice. c.horizontaldemandcurves,andtheycansellasmuchoutputastheydesireatthemarketprice. d.horizontaldemandcurves,andtheycansellonlyalimitedquantityofoutputateachprice.    

  11.There is agreement throughout society that: a.Overseas expansion is good because it helps improve standards of living around the world. b.Overseas expansion is bad because it causes loss of jobs in the home country. c.Firms should stick strictly to business within a country and not seek to impose their views of human rights on other countries that have different views. d.Firms have a responsibility […]

  61.Whichofthefollowingreducestheinterestrate? a.anincreaseingovernmentexpendituresandanincreaseinthemoneysupply b.anincreaseingovernmentexpendituresandadecreaseinthemoneysupply c.adecreaseingovernmentexpendituresandanincreaseinthemoneysupply d.adecreaseingovernmentexpendituresandadecreaseinthemoneysupply 62.Supposeinvestmentspendingfalls.TooffsetthechangeinoutputtheFederalReservecould a.increasethemoneysupply.Thisincreasewouldalsomovethepricelevelclosertoitsvaluebeforethedeclineininvestmentspending. b.increasethemoneysupply.However,thisincreasewouldmovethepricelevelfartherfromitsvaluebeforethedeclineininvestmentspending. c.decreasethemoneysupply.Thisdecreasewouldalsomovethepricelevelclosertoitsvaluebeforethedeclineininvestmentspending. d.decreasethemoneysupply.However,thisincreasewouldmovethepricelevelfartherfromitsvaluebeforethedeclineininvestmentspending. 63.Supposestockpricesrise.TooffsettheresultingchangeinoutputtheFederalReservecould a.increasethemoneysupply.Thisincreasewouldalsomovethepricelevelclosertoitsvaluebeforetheriseinstockprices. b.increasethemoneysupply.However,thisincreasewouldmovethepricelevelfartherfromitsvaluebeforetheriseinstockprices. c.decreasethemoneysupply.Thisdecreasewouldalsomovethepricelevelclosertoitsvaluebeforetheriseinstockprices. d.decreasethemoneysupply.However,thisdecreasewouldmovethepricelevelfartherfromitsvaluebeforetheriseinstockprices. 64.SupposeforeignersfindU.S.goodsandservicesmoredesirableforsomereasonotherthanachangeintheexchangerate.Whichpoliciescouldbeusedtooffsettheresultingchangeinoutput? a.anincreaseinthemoneysupplyandanincreaseingovernmentpurchases. b.anincreaseinthemoneysupplyandadecreaseingovernmentpurchases. c.adecreaseinthemoneysupplyandanincreaseingovernmentpurchases. d.adecreaseinthemoneysupplyandadecreaseingovernmentpurchases. 65.IfitwerenotfortheautomaticstabilizersintheU.S.economy, a.theFederalReservewouldhavelessreasonthanithasnowtomonitorstockprices. b.itwouldbemoredesirablethanitisnowfortheFederalReservetotargetaninterestrate. c.astrictbalanced-budgetrulewouldbemoredesirablethanitisnow. d.outputandemploymentwouldprobablybemorevolatilethantheyarenow. 66.AfiscalstimuluswasinitiatedbyPresidentObamainresponsetotheeconomicdownturnof2008-2009.Atthattime,thepresident’seconomistsestimatedthemultipliertobe a.3.2forgovernmentpurchasesand2.0fortaxcuts. b.2.4forgovernmentpurchasesand1.4fortaxcuts. c.1.6forgovernmentpurchasesand1.0fortaxcuts. d.1.6forgovernmentpurchasesand0.4fortaxcuts. 67.A2009articleinTheEconomistnotedthatsomestudieshaveprovidedevidenceindicatingthatmultipliersare a.smallerinclosedeconomiesthaninopeneconomies. b.largerinclosedeconomiesthaninopeneconomies. c.smallerincapitalisteconomiesthaninsocialisteconomies. d.largerincapitalisteconomiesthaninsocialisteconomies. 68.A2009articleinTheEconomistnotedthat a.recentresearchhasallowedeconomiststoestimatethevaluesoffiscalmultiplierswithagreatdealofprecision. b.researchonmultipliersindicatesthatmultipliersforpermanenttaxcutstendtobesmallerthanmultipliersfortemporarytaxcuts. c.mostoftheevidenceonmultipliersforgovernmentspendingisbasedonchangesinmilitaryexpenditures. d.Alloftheabovearecorrect. 69.Accordingtoa2009articleinTheEconomist,themultipliereffectandcrowding-outeffectwouldexactlyoffseteachotherwhentheeconomyis a.operatingatfullcapacity. b.inrecession. c.experiencingzeroinflation. d.experiencinghighratesofinflation. Multiple Choice – Section 04: Conclusion 1.Intheshortrun, a.thepricelevelaloneadjuststobalancethesupplyanddemandformoney. b.outputrespondstochangesintheaggregatedemandforgoodsandservices. c.changesinthemoneysupplycauseaproportionalchangeinthepricelevel. d.increasesinthemoneysupplyshifttheaggregatesupplycurvecausingoutputtorise. 2.In thelong run,the levelof output a.dependsonthemoneysupply. b.dependsonthepricelevel. c.isdeterminedbysupply-sidefactors. […]

  11) Firms that participate in regular open market transactions with the Federal Reserve are called A) secondary market banks. B) Treasury banks. C) primary dealers. D) Federal Reserve partners. 12) In 2008, the Treasury and Federal Reserve took action to save large financial firms such as Bear Stearns and AIG from failing. Which of the following is one reason why these measures were taken? […]