11) If Sarah gets 40 units of utility from her first piece of toast for breakfast and a total of 70 units from two pieces of toast, then the marginal utility of the first piece is ________ units and the marginal utility of the second piece is ________ units. A) 40; 70 B) 40; 110 C) 40; 30 D) 40; 35 E) 70; 40 […]

  11) If ten years ago the prices of the items bought last month by the average consumer would have been much higher, then one can likely conclude that A) the aggregate price level has declined during this ten-year period. B) the average inflation rate for this ten-year period has been positive. C) the average rate of money growth for this ten-year period has been […]

    31.Which of the following ionic compounds would have a name that contains the Roman numeral III? a.AlCl3 b.FeBr3 c.Cu3N d.more than one correct response e.no correct response       32.In which of the following compounds is there a one-to-two ratio between positive and negative ions? a.calcium sulfide b.magnesium bromide c.lead(IV) oxide d.more than one correct response e.no correct response       […]

  81) A rise in the Canadian-dollar price of foreign currency is A) a decrease in the exchange rate. B) an appreciation of the Canadian dollar. C) a depreciation of the Canadian dollar. D) a gain in the relative value of the Canadian dollar. E) a rise in the external value of the Canadian dollar. 82) If the exchange rate between Mexican pesos and Canadian […]

  31) A rent ceiling in a housing market A) makes all rents lower than the ceiling illegal to charge. B) is set above the equilibrium rent in order to have an effect. C) increases the time people spend searching for housing. D) Both answers B and C are correct. E) Both answers A and C are correct. 32) In a housing market with a […]

  81.Yvonnetakesoutafixed-interest-rateloanandtheninflationturnsouttobehigherthanshehadexpectedittobe.Therealinterestrateshepaysis a.higherthanshehadexpected,andtherealvalueoftheloanishigherthanshehadexpected. b.higherthanshehadexpected,andtherealvalueoftheloanislowerthanshehadexpected. c.lowerthanshehadexpected,andtherealvalueoftheloanishigherthanshehadexpected. d.lowerthenshehadexpected,andtherealvalueoftheloanislowerthanshehadexpected. 82.Martalendsmoneyatafixedinterestrateandtheninflationturnsouttobehigherthanshehadexpectedittobe.Therealinterestratesheearnsis a.higherthanshehadexpected,andtherealvalueoftheloanishigherthanshehadexpected. b.higherthanshehadexpected,andtherealvalueoftheloanislowerthanshehadexpected. c.lowerthanshehadexpected,andtherealvalueoftheloanishigherthanshehadexpected. d.lowerthenshehadexpected,andtherealvalueoftheloanislowerthanshehadexpected. 83.Taradepositsmoneyintoanaccountwithanominalinterestrateof6percent.Sheexpectsinflationtobe2percent.Hertaxrateis20percent.Tara’safter­taxrealrateofinterest a.willbe2.8percentifinflationturnsouttobe2percent;itwillbehigherifinflationturnsouttobehigherthan2percent. b.willbe2.8percentifinflationturnsouttobe2percent;itwillbelowerifinflationturnsouttobehigherthan2percent. c.willbe3.2percentifinflationturnsouttobe2percent;itwillbehigherifinflationturnsouttobehigherthan2percent. d.willbe3.2percentifinflationturnsouttobe2percent;itwillbelowerifinflationturnsouttobehigherthan2percent. 84.Samdepositsmoneyintoanaccountwithanominalinterestrateof4percent.Heexpectsinflationtobe1.5percent.Histaxrateis32percent.Sam’safter­taxrealrateofinterest a.willbe1.2percentifinflationturnsouttobe1.5percent;itwillbehigherifinflationturnsouttobelowerthan1.5percent. b.willbe1.2percentifinflationturnsouttobe1.5percent;itwillbelowerifinflationturnsouttobelowerthan1.5percent. c.willbe1.7percentifinflationturnsouttobe1.5percent;itwillbehigherifinflationturnsouttobelowerthan1.5percent. d.willbe1.7percentifinflationturnsouttobe1.5percent;itwillbelowerifinflationturnsouttobelowerthan1.5percent. 85.Ifpeoplehadbeenexpectingpricestorisebutinfactpricesfell,thenwhoamongthefollowingwouldbenefit? a.lendersandpeopleholdingalotofcurrency b.lendersbutnotpeopleholdingalotofcurrency c.peopleholdingalotofcurrencybutnotlenders d.neitherlendersnorpeopleholdingalotofcurrency 86.Highandunexpectedinflationhasagreatercost a.forthosewhoborrowthanforthosewhosave. b.forthosewhoholdalittlemoneythanforthosewhoholdalotofmoney. c.forthosewhosewagesincreasebyasmuchasinflationthanforthosewhoarepaidafixednominalwage. d.forsaversinhighincometaxbracketsthanforsaversinlowincometaxbrackets. 87.Highandunexpectedinflationhasagreatercost a.forthosewhosavethanforthosewhoborrow. b.forthosewhoholdalittlemoneythanforthosewhoholdalotofmoney. c.forthosewhosewagesincreasebyasmuchasinflationthanthosewhoarepaidafixednominalwage. d.forsaversinlowincometaxbracketsthanforsaversinhighincometaxbrackets. 88.Highandunexpectedinflationhasagreatercost a.forthosewhoborrowthanforthosewhosave. b.forthosewhoholdalittlemoneythanforthosewhoholdalotofmoney. c.forthosewhohavefixednominalwagesthanforthosewhohavenominalwagesthatadjustwithinflation. d.Alloftheabovearecorrect. 89.Between1880and1886,pricesthatwere a.lowerthanexpectedtransferredwealthfromcreditorstodebtors. b.lowerthanexpectedtransferredwealthfromdebtorstocreditors. c.higherthanexpectedtransferredwealthfromcreditorstodebtors. d.higherthanexpectedtransferredwealthfromdebtorstocreditors. 90.In1898,prospectorsontheKlondikeRiverdiscoveredgold.Thisdiscoverycausedanunexpectedpricelevel a.decreasethatbenefitedcreditorsattheexpenseofdebtors. b.decreasethatbenefiteddebtorsattheexpenseofcreditors. c.increasethatbenefitedcreditorsattheexpenseofdebtors. d.increasethatbenefiteddebtorsattheexpenseofcreditors.    

  Table 13-5   Quantity Price Total Cost 1 $18 $14 2   16   20 3   14   26 4   12   32 5   10   38 6    8   44   Table 13-5 shows the demand and cost data facing a monopolistically competitive producer of canvas bags.   36) Refer to Table 13-5.  What are the firm’s profit-maximizing or […]

  17.5   A Closer Look at the Fed’s Setting of Monetary Policy Targets   1) Under the monetary growth rule proposed by the monetarists, the money supply would grow each year at a constant rate equal to the long-run rate of growth of A) inflation. B) real GDP. C) interest rates. D) employment.   2) Monetarists think that the Fed should use ________ as a […]

  13.5   Appendix: Indifference Curves   1) Consumers’ preferences are described by A) budget lines. B) indifference curves. C) relative prices. D) household income. E) demand curves. 2) An indifference curve shows A) different combinations of two goods among which the consumer is indifferent. B) consumption possibilities that a consumer faces at different prices and income. C) affordable combinations of goods. D) the opportunity cost […]

  61. (p. 113) Rituals are patterns of behavior and interaction that are:  A. learned and repeated. B. scientifically verified for effectiveness. C. enforced by governments. D. unique to each individual. E. universally accepted as proper behavior. 62. (p. 112) Giving a gift in another country requires careful attention if it is to be done properly. According to the following characteristics of gift giving, which country most likely practices this form of gift giving: never make […]