Figure 19-11   41) Refer to Figure 19-11. Which of the events below cause the shifts in the supply and demand curves in the market for dollars against the British pound shown in the graph above? A) interest rates rise in England B) interest rates rise in the United States C) real income rises in the United States D) real income falls in […]

  88.Which of the following is the primary aspect of job enlargement?  A.Autonomy B.Affiliation C.Job feedback D.Growth need strength E.Skill variety 89.A video journalist’s job consists of operating the camera, reporting the story, and often editing the work, whereas these three tasks are traditionally performed by three people. Video journalism is an example of:  A.self-leadership and job enlargement. B.job enrichment and self-leadership. C.job enlargement and […]

    41) If x increases whenever y decreases, then x and y are A) not related. B) positively related. C) directly related. D) negatively related. E) related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis.   42) Whenever one variable increases, another variable decreases. The two variables are A) definitely […]

  21) Property rights assure people that A) the government will not confiscate their income or savings. B) the government will provide a minimum standard of living. C) the factors of production and goods are owned jointly by the government and the people. D) economic growth will enhance government involvement in the economy. E) international trade will be limited. 22) Jose and Julia were discussing […]

    51.First National Eatery prepares its statement of cash flows using the indirect method. The statement reported that cash provided by operating activities for the year was $7,000. If the company experienced a $14,000 decrease in accounts receivable, a $13,000 decrease in accounts payable, and a $4,000 increase in inventory during the year, how much is the company’s net income/(loss) for the year? A.($3,000) […]

    11) Marginal utility can be A) negative. B) zero. C) positive. D) positive, negative or zero.   12) Which of the following is likely to occur as the result of the law of diminishing marginal utility? A) Petra’s utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his […]

  41) The Herfindahl-Hirschman Index is one factor used to determine whether a merger between two firms should be allowed. Which of the following statements regarding the value of the Index for a given industry is true? A) If a merger would result in an Index value less than 1,000, the merger would not be challenged. B) If a merger would result in an Index […]

  21) Suppose the marginal cost of the fourth unit of a public good is $20. If Mark and Judy are the only members of society, and they are willing to pay $10 and $11, respectively, for the fourth unit of the good, then the efficient quantity is A) 3 units. B) 4 or more units. C) 0 units. D) More information is needed about […]

    51) Consider the following pricing strategies: a.perfect price discrimination b.charging different prices to different groups of customers c.optimal two-part tariff d.single-price monopoly pricing   Which of the pricing strategies leads to the economically efficient output level? A) a only B) a and b only C) a and c only D) a, b, and c only   52) If Mort’s House of Flowers sells […]

  171.IftheFederalReserveincreasesthemoneysupply,theninitiallypeoplewantto a.sellbondssotheinterestraterises. b.sellbondssotheinterestratefalls. c.buybondssotheinterestraterises. d.buybondssotheinterestratefalls. 172.IfmoneydemandshiftedtotherightandtheFederalReservedesiredtoreturntheinterestratetoitsoriginalvalue,itcould a.buybondstoincreasethemoneysupply. b.buybondstodecreasethemoneysupply. c.sellbondstoincreasethemoneysupply. d.sellbondstodecreasethemoneysupply. 173.TodecreasetheinterestratetheFederalReservecould a.buybonds.Thefallintheinterestratewouldincreaseinvestmentspending. b.buybonds.Thefallintheinterestratewoulddecreaseinvestmentspending. c.sellbonds.Thefallintheinterestratewouldincreaseinvestmentspending d.sellbonds.Thefallintheinterestratewoulddecreaseinvestmentspending. 174.Whichoftheeffectslistedbelowincreasesthequantityofgoodsandservicesdemandedwhenthepricelevelfallsanddecreasesthequantityofgoodsandservicesdemandedwhenthepricelevelrises? a.thewealtheffect b.theinterest-rateeffect c.theexchange-rateeffect d.Alloftheabovearecorrect. 175.Theexchange-rateeffectisbased,inpart,ontheideathat a.adecreaseinthepricelevelreducestheinterestrate. b.anincreaseinthepricelevelcausesinvestorstomovesomeoftheirfundsoverseas. c.anincreaseinthepricelevelcausesdomesticgoodstobecomelessexpensiverelativetoforeigngoods. d.adecreaseinthepricelevelreducesspendingonnetexports. 176.FortheU.S.economy,moneyholdingsarea a.largepartofhouseholdwealth,andsotheinterest-rateeffectislarge. b.largepartofhouseholdwealth,andsothewealtheffectislarge. c.smallpartofhouseholdwealth,andsotheinterest-rateeffectissmall. d.smallpartofhouseholdwealth,andsothewealtheffectissmall. 177.Whentheinterestrateisabovetheequilibriumlevel, a.thequantityofmoneythatpeoplewanttoholdislessthanthequantityofmoneythattheFederalReservehassupplied. b.peoplerespondbybuyinginterest-bearingbondsorbydepositingmoneyininterest-bearingbankaccounts. c.bondissuersandbanksrespondbyloweringtheinterestratestheyoffer. d.Alloftheabovearecorrect. 178.Whentheinterestrateisbelowtheequilibriumlevel, a.thequantityofmoneythattheFederalReservehassuppliedexceedsthequantityofmoneythatpeoplewanttohold. b.peoplerespondbysellinginterest-bearingbondsorbywithdrawingmoneyfrominterest-bearingbankaccounts. c.bondissuersandbanksrespondbyloweringtheinterestratestheyoffer. d.Alloftheabovearecorrect. 179.Charisseisoftheopinionthattheinterestratedependsontheeconomy’ssavingpropensitiesandinvestmentopportunities.MosteconomistswouldsaythatCharisse’sopinionis a.Keynesianinnature,andthatherviewismorevalidforthelongrunthanfortheshortrun. b.classicalinnature,andthatherviewismorevalidforthelongrunthanfortheshortrun. c.Keynesianinnature,andthatherviewismorevalidfortheshortrunthanforthelongrun. d.classicalinnature,andthatherviewismorevalidfortheshortrunthanforthelongrun. 180.Marcusisoftheopinionthatthetheoryofliquiditypreferenceexplainsthedeterminationoftheinterestrateverywell.MosteconomistswouldsaythatMarcus’sopinionis a.Keynesianinnature,andthathisviewismorevalidforthelongrunthanfortheshortrun. b.classicalinnature,andthathisviewismorevalidforthelongrunthanfortheshortrun. c.Keynesianinnature,andthathisviewismorevalidfortheshortrunthanforthelongrun. d.classicalinnature,andthathisviewismorevalidfortheshortrunthanforthelongrun. Figure34-4.Onthefigure,MSrepresentsmoneysupplyandMDrepresentsmoneydemand.