31.Thesupplyofoilislikelytobe a.inelasticinboththeshortrunandlongrun. b.elasticinboththeshortrunandlongrun. c.elasticintheshortrunandinelasticinthelongrun. d.inelasticintheshortrunandelasticinthelongrun. 32.Intheearly1970s,OPEC’sgoalwasto a.decreasetheworld-widepriceofoilsothatthequantitydemandedincreased,thusraisingtotalrevenuesforOPECmembers. b.increasetheworld-widepriceofoilbyreducingthequantityofoilsupplied. c.increasetheworld-widepriceofoilbyincreasingthequantityofoilsupplied,thusraisingtotalrevenuesforOPECmembers. d.decreasetheworld-widepriceofoilsothatquantitydemandedincreased. 33.WhichofthefollowingwasnotareasonOPECfailedtokeepthepriceofoilhigh? a.Overthelongrun,producersofoiloutsideofOPECrespondedtohigherpricesbyincreasingoilexplorationandbybuildingnewextractioncapacity. b.Consumersrespondedtohigherpriceswithgreaterconservation. c.Consumersreplacedoldinefficientcarswithnewerefficientones. d.TheagreementOPECmemberssignedallowedeachcountrytoproduceasmuchoilaseachwanted. 34.OPECsuccessfullyraisedtheworldpriceofoilinthe1970sandearly1980s,primarilydueto a.aninelasticdemandforoilandareductionintheamountofoilsupplied. b.areductionintheamountofoilsuppliedandaworld-wideoilembargo. c.aworld-wideoilembargoandanelasticdemandforoil. d.areductionintheamountofoilsuppliedandanelasticdemandforoil. 35.WhywasOPECunabletomaintainhighoilpricesinthelongrun? a.Demandandsupplyarebothelasticinthelongruncomparedtotheshortrun. b.Demandandsupplyarebothinelasticinthelongruncomparedtotheshortrun. c.Demandiselasticandsupplyisinelasticinthelongruncomparedtotheshortrun. d.Demandisinelasticandsupplyiselasticinthelongruncomparedtotheshortrun. 36.Ifmarijuanawerelegalized,itislikelythattherewouldbeanincreaseinthesupplyofmarijuana.Advocatesofmarijuanalegalizationarguethatthiswouldsignificantlyreducetheamountofrevenuegoingtothecriminalorganizationsthatcurrentlysupplymarijuana.Theseadvocatesbelievethatthe a.supplyformarijuanaiselastic. b.demandformarijuanaiselastic. c.supplyformarijuanaisinelastic. d.demandformarijuanaisinelastic. 37.Underwhichofthefollowingconditionswouldtheinterdictionofillegaldrugsresultinadecreaseinthequantityofdrugs soldandinadecreaseintotalspendingonillegaldrugsbydrugusers? a.Theinterdictionhastheeffectofshiftingthedemandcurveforillegaldrugstotheright. b.Thepriceelasticityofdemandforillegaldrugsis1.3. c.Thepriceelasticityofsupplyforillegaldrugsis0.8. d.Asaresultoftheinterdiction,thepriceofillegaldrugsincreasesby20percentandthequantityofillegaldrugssolddecreasesby16percent. 38.Whichofthefollowingstatementsdoesnothelptoexplainwhygovernmentdruginterdictionincreasesdrug-relatedcrime? a.Thedemandforillegaldrugsisinelastic. b.Interdictionresultsindrugaddictshavingagreaterneedforquickcash. c.Interdictionresultsinanincreaseintheamountofmoneyneededtobuythesameamountofdrugs. d.Governmentdrugprogramsaremorelenientnowwithdrugoffendersthantheywereinthe1980s. 39.Whichofthefollowingstatementshelpstoexplainwhygovernmentdruginterdictionincreasesdrug-relatedcrime? a.Thedirectimpactisonbuyers,notsellers. b.Successfuldruginterdictionpoliciesreducethedemandforillegaldrugs. c.Drugaddictswillhaveanevengreaterneedforquickcashtosupporttheirhabits. d.Intheshortrun,bothequilibriumquantitiesandpriceswillfallinthemarketsforillegaldrugs. 40.Whichofthefollowingstatementsisnotcorrectconcerninggovernmentattemptstoreducetheflowofillegaldrugsintothecountry?Druginterdiction a.raisespricesandtotalrevenueinthedrugmarket. b.canincreasedrug-relatedcrime. c.shiftsthedemandcurvefordrugstotheleft. d.shiftsthesupplycurveofdrugstotheleft.    

  41.Which of the following approaches to providing feedback would not likely be well received in the Russian culture? a.group-based (rather than individual) b.indirectly, perhaps through a third-party c.feedback that includes input from peers and customers d.a direct and well-balanced review of the individual’s strengths and weaknesses (page 151, moderate) 42.A multinational firm having a/an _____ approach to performance evaluation would use the same performance […]

  51) The balanced budget multiplier is based on the point that the ________ multiplier is larger than the ________ multiplier so that an equal increase in government expenditure and taxes ________ aggregate demand.  A) tax; expenditure; does not change B) expenditure; tax; does not change C) expenditure; tax; decreases D) expenditure; tax; increases E) tax; expenditure; decreases 52) The balanced budget multiplier applies when […]

    101.Supporters of minimum-wage legislation argue that: A. workers deserve a basic standard of living. B. it should be set below the market equilibrium wage. C. some workers will become unemployed as a result of the minimum wage. D. All of these are true. 102.Those who oppose minimum wage legislation argue that: A. setting a wage above the market-clearing equilibrium creates unemployment. B. it should be set below the market-clearing […]

  11) If, in a competitive market, marginal benefit is less than marginal cost, A) the net benefit to consumers from participating in the market is less than the net benefit to producers. B) the government must force producers to raise prices in order to achieve economic efficiency. C) the quantity sold is greater than the equilibrium quantity. D) the quantity sold is less than […]

  21) Which of the following is always a violation of the antitrust law? A) price fixing B) price discrimination C) resale price maintenance D) predatory pricing E) tying arrangements   22) Price fixing A) always is a violation of the law. B) is allowed only if otherwise a firm would go bankrupt. C) is one of the business practices prohibited by the Clayton Act. […]

  1) Any central bank, including the Bank of Canada, can implement its monetary policy by directly influencing either ________ or ________, but not both. A) money supply; money demand B) aggregate supply; aggregate demand C) the money supply; the interest rate D) aggregate demand; the interest rate E) the price level; the interest rate 2) Consider the implementation of monetary policy. One difficulty in […]

    91. Prior to the start of 2008, Proctor Inc. estimated budgeted sales at 225,000 units. At the start of 2008, there were 8,000 units in beginning finished goods. During 2008, 215,000 units were produced and 220,000 units were sold. How many units should Proctor’s 2008 flexible sales budget be based upon? A. 225,000B. 220,000C. 215,000D. 212,000   92. Vestal Products Inc. had the following information available for 2008:  Budgeted sales […]

    61) During an economic expansion when real GDP increases, the A) demand for money increases. B) demand for money decreases. C) supply of money decreases. D) nominal interest rate is constant. E) real interest rate is constant.   62) During an economic expansion, the demand for money ________ because ________. A) increases; real GDP increases B) increases; nominal GDP does not change C) […]

    4.4   The Political Economy of Trade: A Preliminary View   1) Those who will lose from free trade are ________ factors in sectors that produce goods that are ________. A) immobile; also imported B) mobile; also imported C) immobile; exported D) mobile; exported E) mobile; untraded     2) Those who will unambiguously gain from free trade are ________ factors in sectors that […]