61) Suppose there is an increase in the marginal propensity to spend out of national income. The result will be A) a movement to the right along the AE curve. B) a movement to the left along the AE curve. C) an increase in the slope of the AE curve. D) a decrease in the slope of the AE curve. E) a parallel upward […]

  21.Delvin Co. uses the percentage of credit sales approach in estimating its bad debt expense. The total estimate that is calculated by multiplying the percentage times the net sales revenue for the period will be equal to a. the debit balance required in the allowance for doubtful accounts after the recognition of bad debts expense. b. the credit balance required in the allowance for […]

  9.3   Explaining Unemployment   1) An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment. A) increase; cyclical B) increase; frictional C) decrease; cyclical D) decrease; frictional     2) Which of the following would increase the unemployment rate? A) a law making it illegal to work more than 35 […]

  41.TheNationalLaborRelationsBoard a.enforcesantitrustlawsagainstunions. b.enforcesworkers’rightstounionize. c.actsasaunion’srepresentativeincollectivebargaining. d.isrequiredtoapproveallcollectivebargainingagreementsbeforetheycanbeenforced. 42.Right-to-worklaws a.guaranteeworkerstherighttoformunions. b.giveworkersinaunionizedfirmtherighttochoosewhethertojointheunion. c.preventemployersfromhiringpermanentreplacementsforworkerswhoareonstrike. d.preventworkersfrombeingfiredbecauseofincreasesinwagesbroughtaboutbycollectivebargaining. 43.Intheabsenceofright-to-worklaws,workers a.thatwentonstrikecouldbepermanentlyreplaced. b.mightberequiredtojointheunioniftheyworkedforaunionizedfirm. c.wouldnotbeabletounionize. d.wouldnotbeabletostrike. 44.Whichofthefollowingiscorrect? a.Thereisconsensusamongeconomiststhatunionsaregoodfortheeconomy. b.Thereisconsensusamongeconomiststhatunionsarebadfortheeconomy. c.Thereisconsensusamongeconomiststhat,onnet,unionshavealmostnoimpactonmacroeconomicvariables. d.Thereisnoconsensusamongeconomistsaboutwhetherunionsaregoodorbadfortheeconomy. 45.Thereisaclearconsensusamongeconomiststhatunionsare a.goodfortheeconomybecausetheyresultinhigherwagesformostworkers. b.goodfortheeconomybecausetheyareanecessaryantidotetothemarketpowerofemployers. c.badfortheeconomybecausetheyarecartelsandthereforedetrimentaltoanefficientallocationofresources. d.Noneoftheaboveiscorrect;thereisnoclearconsensusamongeconomistsaboutwhetherunionsaregoodorbadfortheeconomy. 46.Whichofthefollowingiscorrect? a.Inunionizedindustries,wagesareabovethelevelthatwouldprevailincompetitivemarkets. b.Theintroductionofaunioninsomeindustryreducesthequantityoflabordemandedinthatindustry,causessomeworkersinthatindustrytobeunemployed,andreduceswagesintherestoftheeconomy. c.Criticsarguethattheallocationoflaborresultingfromunionsisbothinefficientandinequitable. d.Alloftheabovearecorrect. 47.Whichofthefollowingiscorrect? a.Inunionizedindustries,wagesarebelowthelevelthatwouldprevailincompetitivemarkets. b.Theintroductionofaunioninanindustryincreasesthequantityoflabordemandedinthatindustry,causessomeworkersinthatindustrytobeunemployed,andincreaseswagesintherestoftheeconomy. c.Criticsarguethattheallocationoflaborresultingfromunionsisbothinefficientandinequitable. d.Alloftheabovearecorrect. 48.Whichofthefollowingiscorrect? a.Inunionizedindustries,wagesarebelowthelevelthatwouldprevailincompetitivemarkets. b.Theintroductionofaunioninanindustryreducesthequantityoflabordemandedinthatindustry,causessomeworkersinthatindustrytobeunemployed,andreduceswagesintherestoftheeconomy. c.ThereisastrongconsensusamongeconomiststhatunionsarebadfortheU.S.economy. d.Alloftheabovearecorrect. 49.Which of the following isnotacontentionofadvocatesofunions? a.Unionsareanecessaryantidotetothemarketpowerofthefirmsthathireworkers. b.Inthecaseofa“companytown,”aunionmaybalancethefirm’smarketpowerandprotecttheworkersfrombeingatthemercyofthefirm’sowners. c.Theintroductionofaunionbenefitsallworkersinafirm. d.Unionsareimportantforhelpingfirmsrespondefficientlytoworkers’concerns. 50.Whichofthefollowingiscorrect? a.Nearlyalleconomistsbelievethatunionsarebadfortheeconomyasawhole. b.Unionizedfirmspaywagesabovethecompetitiveequilibriumlevel. c.Unionsincreasethelevelofemploymentinunionizedfirms. d.Unionsdecreasethelevelofemploymentinfirmswithoutunions.    

  31) If an economy is fully utilizing its resources, it can produce more of one product only if it A) doubles manufacturing of the product. B) produces less of another product. C) adds more people to the labor force. D) reduces the price of the most expensive products. Refer to the information provided in Figure 2.2 below to answer the questions that follow.   […]

  16.2   Single-Price Monopoly   1) The demand curve for a monopoly is A) horizontal because the demand is perfectly elastic. B) downward sloping. C) vertical because the demand is perfectly inelastic. D) upward sloping. E) undefined because it is the only supplier in the market.   2) If a monopoly wants to sell a greater quantity of output, it must A) lower its price. […]

      1) An export tariff will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare. A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect […]

  1.3  The First Principle of Economics: Optimization 1) Which of the following statements is true of optimization? A) Optimization analysis only relates to the financial budget of an economic agent. B) Individuals who optimize do not consider costs when choosing the most feasible alternative. C) Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits. D) Economic […]

    7.1   The Consumer Price Index   1) The CPI stands for A) Citizens Paying Index. B) Corporate Pricing Index. C) Consumer Paying Index. D) Consumer Price Index. E) Corporate/Consumer Payment Index.   2) The Consumer Price Index is calculated by the A) Bureau of Labor Statistics. B) Department of Labor. C) Department of Commerce. D) Federal Reserve Bank of New York. E) Society […]

  81.Astheinterestratefalls, a.thequantityofmoneydemandedfalls,whichwouldreduceashortage. b.thequantityofmoneydemandedfalls,whichwouldreduceasurplus. c.thequantityofmoneydemandedrises,whichwouldreduceashortage. d.thequantityofmoneydemandedrises,whichwouldreduceasurplus. 82.Theinterestratefallsif a.thepricelevelfallsorthemoneysupplyfalls. b.thepricelevelfallsorthemoneysupplyrises. c.thepricelevelrisesorthemoneysupplyfalls. d.thepricelevelrisesorthemoneysupplyrises. 83.If,atsomeinterestrate,thequantityofmoneydemandedislessthanthequantityofmoneysupplied,peoplewilldesireto a.sellinterest-bearingassets,causingtheinterestratetodecrease. b.sellinterest-bearingassets,causingtheinterestratetoincrease. c.buyinterest-bearingassets,causingtheinterestratetodecrease. d.buyinterest-bearingassets,causingtheinterestratetoincrease. 84.If,atsomeinterestrate,thequantityofmoneysuppliedislessthanthequantityofmoneydemanded,peoplewilldesireto a.sellinterest-bearingassets,causingtheinterestratetodecrease. b.sellinterest-bearingassets,causingtheinterestratetoincrease. c.buyinterest-bearingassets,causingtheinterestratetodecrease. d.buyinterest-bearingassets,causingtheinterestratetoincrease. 85.Whichofthefollowingiscorrect? a.Ahigherpricelevelshiftsmoneydemandrightward. b.Whenmoneydemandshiftsrightward,theinterestraterises. c.Ahigherinterestratereducesthequantityofgoodsandservicesdemanded. d.Alloftheabovearecorrect. 86.IftheFedincreasesthemoneysupply, a.theinterestrateincreases,whichtendstoraisestockprices. b.theinterestrateincreases,whichtendstoreducestockprices. c.theinterestratedecreases,whichtendstoraisestockprices. d.theinterestratedecreases,whichtendstoreducestockprices. 87.Whenthereisanexcesssupplyofmoney, a.peoplewilltrytogetridofmoneycausinginterestratestorise.Investmentincreases. b.peoplewilltrytogetridofmoneycausinginterestratestofall.Investmentdecreases. c.peoplewilltrytogetridofmoneycausinginterestratestofall.Investmentincreases. d.peoplewilltrytogetridofmoneycausinginterestratestorise.Investmentdecreases. 88.Ifthereisexcessdemandformoney,thenpeoplewill a.depositmoremoneyintointerest-bearingaccounts,andtheinterestratewillfall. b.depositmoremoneyintointerest-bearingaccounts,andtheinterestratewillrise. c.withdrawmoneyfrominterest-bearingaccounts,andtheinterestratewillfall. d.withdrawmoneyfrominterest-bearingaccounts,andtheinterestratewillrise. 89.Ifthereisexcessmoneysupply,peoplewill a.depositmoreintointerest-bearingaccounts,andtheinterestratewillfall. b.depositmoreintointerest-bearingaccounts,andtheinterestratewillrise. c.withdrawmoneyfrominterest-bearingaccounts,andtheinterestratewillfall. d.withdrawmoneyfrominterest-bearingaccounts,andtheinterestratewillrise. 90.Peoplemightwithdrawmoneyfrominterest-bearingaccounts, a.makingtheinterestratefall,ifthereisasurplusinthemoneymarket. b.makingtheinterestraterise,ifthereisasurplusinthemoneymarket. c.makingtheinterestratefall,ifthereisashortageinthemoneymarket. d.makingtheinterestraterise,ifthereisashortageinthemoneymarket.