52) Autoworkers negotiate a wage increase. How does this change affect the supply curve of cars? A) It shifts the supply curve leftward. B) It shifts the supply curve rightward. C) It does not shift the supply curve or create a movement along it. D) The supply curve will shift but there is not enough information to tell if the change shifts the supply […]

    71) The graph shows a A) positive relationship that becomes less steep. B) negative relationship that is linear. C) positive relationship that is linear. D) negative relationship that become less steep. E) None of the above answers is correct. 72) The graph shows A) a relationship with a minimum. B) a relationship with a maximum. C) no relationship. D) a linear relationship. E) […]

    20.3   Banking and Financial Fragility   1) For the following question, assume the following facts: (1)Chase (which is located in the United States) has a 20% reserve requirement imposed by the government. (2)Bank of Germany has no reserve requirements. (3)Both banks may invest at an 8% interest rate. (4)Both banks have fixed costs of $3 per deposit made. What is the difference between […]

    91) In the money market, in the short run if the quantity of money exceeds the quantity of money demanded, then to achieve equilibrium the A) supply of money increases. B) nominal interest rate falls. C) inflation rate increases. D) demand for money increases. E) price level rises.   92) In the money market, in the short run in order to decrease the […]

    101.One reason the supply of cell phones has increased is: A. cell towers are more common. B. better technology allows them to be produced more cheaply. C. consumer preferences for cell phones has increased. D. expectations of the future are that no landlines will exist soon. 102.A factory recently adds new robots to their production line, increasing productivity. This will likely cause: A. a rightward shift of the […]

    97.              Comma Manufacturing budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2012 to June 30, 2013: June 30, 2013June 30, 2012 Raw Materials3,000 kilos2,000 kilos Three kilos of raw materials are needed to produce each unit of finished product. If Comma Manufacturing plans to produce 560,000 […]

  12.2  Sources of Market Power 1) Which of the following statements is true? A) Monopoly is characterized by no entry barriers. B) Perfect competition is characterized by high entry barriers. C) Firms in a market with entry barriers are likely to have more market power than firms in a market with no entry barriers. D) Firms in a market with no entry barriers are […]

  51) The figure above illustrates a small country’s production possibilities frontier. Based on the figure, we can tell that the nation’s resources are A) equally productive in all tasks because the slope is negative. B) equally productive in all tasks because the production possibilities frontier is bowed out. C) not equally productive in all tasks because the slope is negative. D) not equally productive […]

    1.2   The Economic Problem That Every Society Must Solve   1) The three fundamental questions that any economy must address are: A) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? B) What goods and services to produce; how will these goods and services be produced; and who receives them? […]

  41) Open market operations are the A) purchase or sale of government securities by the Fed. B) lending of reserves to the banking system by the Fed. C) borrowing of reserves by the Fed from the banking system. D) minimum percentage of loans that banks must retain as reserves in the open market. E) purchase or sale of gold by the Fed. 42) Open […]