41) Consider a small economy where factor supply is 1000 units, the factor utilization rate is 0.9 and a simple measure of productivity (GDP per factor employed) is $80. This economy’s GDP is A) $7200. B) $72 000. C) $80 000. D) $88 888. E) $90 000. 42) Consider a small economy where factor supply is 4000 units, the factor utilization rate is 0.8 […]
104. In early 2012, Duncan Manufacturing Inc. had budgeted for the production and sale of 20,000 units at a sales price of $25 per unit. The following information is available regarding the standard cost for each unit: Direct materials: $6.00 (3 pounds at $2.00 per lb) Direct labor: $3.50 (10 minutes of assembly at $.35 per minute) Actual results for 2012 were determined […]
61) Refer to Figure 14-4. The wage paid by this monopsonistic firm will be ________ and employment will be ________. A) below $25 per hour; below 750 units of labour B) between $25 and $35 per hour; between 750 and 1000 units of labour C) $30 per hour; 1000 units of labour D) $25 per hour; 750 units of labour E) $35 per hour; […]
81) Soda and peanuts are complements. Other influences on buying plans remaining the same, a rise in the price of soda A) increases the demand for peanuts. B) decreases the demand for peanuts. C) decreases the demand for soda. D) increases the demand for soda. E) has no effect on the demand for peanuts, though it does change the quantity demanded of peanuts. […]
31) The official settlements account records the A) change in official U.S. reserves. B) revenue collected from taxing imports. C) income used to settle international lawsuits. D) change in the official U.S. exchange rate. E) revenue collected from taxing exports. 32) The official settlements account is the record of A) a nation’s international trading, borrowing and lending. B) payments for imports, receipts for exports, […]
101) If an increase in income leads to an decrease in the demand for salami, then salami is A) an inferior good. B) a neutral good. C) a necessity. D) a normal good. 102) How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores? A) the demand curve for clothing at retail department stores shifts […]
11) Which of the following describes a difference between a price support and a price ceiling? A) A price support creates a deadweight loss while a price ceiling does not. B) A price ceiling is a regulated price while a price support is a regulated quantity. C) A price support decreases the quantity while a price ceiling does not. D) A price ceiling increases […]
11) Refer to Figure 16.1. Suppose the economy is currently at Point B. If investors are optimistic about future growth in aggregate output, investment A) moves to Point C. B) moves to Point A. C) moves to Point D. D) stays at Point B. 12) If a firm is able to produce the same amount of output even after reducing its labor workforce, […]
71.If the Fed sells more bonds to the public, then the money supply will: A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. Decrease and the aggregate demand curve will shift to the left. 72.Restrictive monetary policy will: A. Decrease the […]
15.3 Influencing Inflation and Unemployment 1) The expected inflation rate is the A) inflation rate that people forecast and use to set the money wage and other money prices. B) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets. C) inter-annual, non-energy inflation rate. D) inflation rate that the Federal Reserve system announces as […]
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