61) Predicting economic and income growth rates is particularly important when researching which type of market? A) existing markets B) latent markets C) parallel markets D) incipient markets E) local markets 62) When a survey questionnaire in English is translated into Korean for use in South Korea and then translated back into English to check its accuracy, it is described as: A) incipient translation. […]

  11) The most important feature of the Single European Act of 1986, which amended the founding Treaty of Rome, was dropping the requirement of A) unanimous consent for measures related to market completion and making it a decision that only Germany and France agreed about. B) unanimous consent for measures related to market completion. C) majority consent for measures related to market completion and […]

    41) Although some economists believe network externalities are important barriers to entry, other economists disagree because A) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences. B) they believe that most examples of network externalities are really barriers […]

  16.4   The Federal Reserve System 1) Suppose there is a bank panic.  Which of the following would not be a consequence of this bank panic? A) Bank total reserves would decrease. B) Required reserves would increase. C) Bank checking account balances would decrease. D) Individual banks would have to shrink the value of loans they made. E) The economy would likely enter into a […]

    41. Bernstein Inc. is a local retailer. The following selected information is available from their 2007 and 2008 financial statements:  Accounts receivable at 12/31/07 $    160,000 Accounts receivable at 12/31/08 240,000     Inventory at 12/31/07 300,000 Inventory at 12/31/08 360,000     Net credit sales for 2008 3,400,000 Cost of goods sold for 2008 1,980,000 Net income for 2008 1,000,000     Refer […]

  28) If there is no Ricardo-Barro effect, a government budget deficit increases A) private savings and raises the real interest rate. B) the supply of loanable funds and raises the real interest rate. C) the demand for loanable funds and raises the real interest rate. D) investment demand and lowers the real interest rate. E) private savings and lowers the real interest rate.   […]

    21) The upward trend in the U.S. labor force participation rate the the past 50 years is explained by A) the increase in the population. B) the increase in the male labor force participation rate. C) the increase in the number of discouraged workers. D) the increase in the female labor force participation rate. E) Both answers B and D are correct.   […]

    11) The law of demand implies that, other things remaining the same, A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. C) as income increases, the quantity of cheeseburgers demanded increases. D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. […]

  21.Acountryhasacomparativeadvantageinaproductiftheworldpriceis a.lowerthanthatcountry’sdomesticpricewithouttrade. b.higherthanthatcountry’sdomesticpricewithouttrade. c.equaltothatcountry’sdomesticpricewithouttrade. d.notsubjecttomanipulationbyorganizationsthatgoverninternationaltrade. 22.SupposeBrazilhasanabsoluteadvantageoverothercountriesinproducingalmonds,butothercountrieshaveacomparativeadvantageoverBrazilinproducingalmonds.Iftradeinalmondsisallowed,Brazil a.willimportalmonds. b.willexportalmonds. c.willeitherimportalmondsorexportalmonds,butitisnotclearfromthegiveninformation. d.wouldhavenothingtogaineitherfromexportingorimportingalmonds. 23.SupposeBrazilhasacomparativeadvantageoverothercountriesinproducingalmonds,butothercountrieshaveanabsoluteadvantageoverBrazilinproducingalmonds.Iftradeinalmondsisallowed,Brazil a.willimportalmonds. b.willexportalmonds. c.willeitherimportalmondsorexportalmonds,butitisnotclearfromthegiveninformation. d.wouldhavenothingtogaineitherfromexportingorimportingalmonds. 24.SupposeJamaicahasanabsoluteadvantageoverothercountriesinproducingsugar,butothercountrieshaveacomparativeadvantageoverJamaicainproducingsugar.Iftradeinsugarisallowed,Jamaica a.willimportsugar. b.willexportsugar. c.willeitherimportsugarorexportsugar,butitisnotclearfromthegiveninformation. d.wouldhavenothingtogaineitherfromexportingorimportingsugar. 25.Assume,forJapan,thatthedomesticpriceofautomobileswithoutinternationaltradeislowerthantheworldpriceofautomobiles.Thissuggeststhat,intheproductionofautomobiles, a.JapanhasacomparativeadvantageoverothercountriesandJapanwillimportautomobiles. b.JapanhasacomparativeadvantageoverothercountriesandJapanwillexportautomobiles. c.othercountrieshaveacomparativeadvantageoverJapanandJapanwillimportautomobiles. d.othercountrieshaveacomparativeadvantageoverJapanandJapanwillexportautomobiles. 26.Assume,forMexico,thatthedomesticpriceofbeetswithoutinternationaltradeishigherthantheworldpriceofbeets.Thissuggeststhat,intheproductionofbeets, a.MexicohasacomparativeadvantageoverothercountriesandMexicowillexportbeets. b.MexicohasacomparativeadvantageoverothercountriesandMexicowillimportbeets. c.othercountrieshaveacomparativeadvantageoverMexicoandMexicowillexportbeets. d.othercountrieshaveacomparativeadvantageoverMexicoandMexicowillimportbeets. 27.Assume,forEngland,thatthedomesticpriceofwinewithoutinternationaltradeishigherthantheworldpriceofwine.Thissuggeststhat,intheproductionofwine, a.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillexportwine. b.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillimportwine. c.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillexportwine. d.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillimportwine. 28.Assume,forEngland,thatthedomesticpriceofwinewithoutinternationaltradeislowerthantheworldpriceofwine.Thissuggeststhat,intheproductionofwine, a.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillexportwine. b.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillimportwine. c.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillexportwine. d.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillimportwine. 29.IftheworldpriceofcoffeeislowerthanColombia’sdomesticpriceofcoffeewithouttrade,thenColombia a.shouldimportcoffee. b.hasacomparativeadvantageincoffee. c.shouldproducejustenoughcoffeetosatisfydomesticdemand. d.shouldproducenocoffeedomestically. 30.IftheworldpriceofcoffeeishigherthanColombia’sdomesticpriceofcoffeewithouttrade,thenColombia a.shouldimportcoffee. b.hasacomparativeadvantageincoffeeandshouldexportcoffee. c.shouldproducejustenoughcoffeetosatisfydomesticdemand. d.shouldproducenocoffeedomestically.    

  10.4   Integrative Questions 1) A noisy party that keeps neighbors awake is an example of a A) negative production externality. B) positive production externality. C) negative consumption externality. D) positive consumption externality. E) Both answers B and C are correct. 2) An externality can be a cost or benefit arising from the production of a good that falls upon A) consumers but not producers. […]