11) A tax rebate, like the one issued in 2008, is likely to ________ consumption spending ________ than would a permanent tax cut. A) increase; more B) increase; less C) decrease; more D) decrease; less 12) When President Obama took office in January 2009, he pledged to pursue an expansionary fiscal policy to try to pull the economy out of the recession. The next […]

  19.4   Government Policies That Restrict International Trade 1) Trade between countries that is without restrictions is called A) unobstructed commerce. B) unabated trade. C) free trade. D) unencumbered trade. Figure 19-1     Figure 19-1 shows the U.S. demand and supply for leather footwear.    2) Refer to Figure 19-1. Under autarky, the consumer surplus is ________ and the producer surplus is ________. A) […]

    21) Which of the following would create a natural monopoly? A) ownership of all the available units of a necessary input B) an exclusive right granted to supply a good or service C) requirement of a government license before the firm can sell the good or service D) technology enabling a single firm to produce at a lower average total cost than two […]

    31) As was demonstrated in 2007, firms in the shadow banking system A) were very vulnerable to bank runs. B) were protected from financial ruin by federal deposit insurance. C) were well insulated from bank runs. D) were more insulated from the financial crisis than were commercial banks.   32) In 2008, the Fed and the Treasury began attempting to stabilize the commercial […]

  6.4   Are Markets Efficient? 1) In a competitive market with no externalities, A) the consumer surplus is equal to zero because of competition. B) buyers cannot control the price, so the consumer surplus is zero. C) at the equilibrium price, marginal benefit exceeds marginal cost. D) at the equilibrium price, marginal benefit equals marginal cost. E) at the equilibrium price, the total amount of […]

  11) When a nation starts importing a good or service, the domestic production of the good or service A) decreases. B) stays the same. C) increases. D) might change, but more information about what the country exports is needed to determine if production increases, decreases, or does not change. E) might change, but more information about what else the country imports is needed to […]

CHAPTER TEST QUESTIONS   Objective Questions For each question, choose the best answer.   1.Understanding the different models of case management is important because: I.each model has particular strengths and weaknesses. II.each model addresses the needs of a specific client population. III.each model provides a different perspective on the case manager’s responsibilities. IV.each model delivers services in different ways.   A.I, II, III, and IV […]

    21) Refer to Table 11-1. What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect? A) output effect = $24.00; price effect = $19.50 B) output effect = $6.50; price effect = $2.00 C) output effect = -$0.50; price effect = $5.00 D) output effect = $6.00; price […]

  41) The amount of currency in circulation in the Canadian economy is described as being endogenous to the system. This is because A) the process of deposit creation by the commercial banks is determined by the Bank of Canada. B) the commercial banks determine the currency in circulation in response to the Bank of Canada’s changes to the money supply. C) the Bank of […]

31) The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops. A) 300,000 B) 500,000 C) 700,000 D) 0 because the United States exports flip-flops E) 400,000   32) The above figure shows the U.S. market for flip-flops. With international trade, U.S. consumers buy ________ flip-flops and U.S. producers produce ________ flip-flops. A) 500,000; 500,000 B) 300,000; […]