81.Cyclical unemployment: A. is unemployment caused by short-term economic fluctuations reflected in GDP growth. B. is unemployment that results from a mismatch between the skills workers can offer and the skills that are in demand. C. is unemployment caused by workers who are changing their location, job, or career. D. is the effect of wages remaining persistently above the market-clearing level. 82.An economic slow-down would cause the: […]

  17) The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket. A) change; overestimates B) change; underestimates C) do not change; overestimates D) do not change; underestimates     18) The increase in quality […]

    5.1   GDP, Income, and Expenditure   1) A measure of a country’s production is its A) gross daily production. B) general daily product. C) general domestic production. D) gross domestic product. E) gross total output.   2) The total production within an economy is measured as A) Gross Home Product. B) Total Domestic Output. C) Annual Production Value. D) Gross Domestic Product. E) […]

    Tom wants to buy a used iPhone from an online exchange site. He expects 50% of the used phones to have some defect. He is willing to pay up to $80 for a phone without any defect and $0 for a defective phone. Note that an owner of a good-quality iPhone is likely to sell his phone if he gets a price of […]

  11) Which of the following is NOT a major argument for restricting international trade? A) the promotion of dumping in America B) the national security argument C) the infant industry argument D) the prevention of dumping argument E) saves U.S. jobs argument   12) Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below […]

  51) In the indifference curve/budget line diagram, consumers reach higher indifference curves when A) their budget decreases. B) the price of only the good measured along the y-axis increases. C) the price of only the good measured along the x-axis increases. D) the price of either good falls. E) the price of either good rises.   52) In an indifference curve/budget line diagram, generally […]

    128.An investment center generated a contribution margin of $400,000, fixed costs of $200,000 and sales of $2,000,000. The center’s average operating assets were $800,000. How much is the return on investment? a.25% b.175% c.50% d.75%     129. Rhein Manufacturing recorded operating data for its auto accessories division for the year. Sales$750,000 Contribution margin150,000 Total direct fixed costs90,000 Average total operating assets400,000 How […]

  3.3   Economic Growth   1) Which of the following is the best definition of economic growth? A) The investment in capital and consumption goods by an economy. B) The opportunity cost of capital. C) The opportunity cost of consumption. D) Increased development of land and entrepreneurship. E) The sustained expansion of production possibilities.   2) The sustained expansion of production possibilities is called A) […]

    80) Competition among sellers generates A) productive efficiency. B) allocative efficiency. C) equity. D) scarcity.     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) […]

  11) If all households in a nation receive the same income, the nation’s Lorenz curve A) is horizontal. B) is vertical. C) is a 45° line. D) runs along the horizontal axis until it reaches 50 percent of households and then runs vertically up to 100 percent of income. E) runs along the horizontal axis until it reaches 100 percent of households and then […]