1) Which of the following best defines quantity demanded? A) The amount an individual purchases at its current price. B) The amount an individual purchases at his or her current income. C) The amount, per time period, that is desired at the most recent price. D) The amount, per time period, an individual desires to purchase at any given price. E) The various amounts […]

  12.3   Health-Care Markets   1) In the health insurance market, adverse selection occurs when A) chronically ill people buy health insurance. B) insured people go to the doctor unnecessarily. C) patients sue their doctor. D) people with health insurance tend to behave more recklessly. E) chronically ill people are unable to buy health insurance.   2) If a health insurance company offers coverage regardless […]

    21) In a macro model with a constant price level, an increase in autonomous desired consumption will cause the AE curve to shift A) downward and the AD curve to shift to the left. B) downward and the AD curve to shift to the right. C) upward and the AD curve to shift to the left. D) upward and the AD curve to […]

  4.1   Demand 1) A market is defined as A) a physical place where people buy only goods. B) a physical place where people buy both goods and services. C) a store where people buy physical goods. D) any arrangement that brings buyers and sellers together. E) a place where one good is bartered for another. 2) EBay A) will be considered a market when […]

  201.TheGDPDeflatorreflects a.thepricesofallfinalgoodsandservicescurrentlyproduceddomestically,asdoestheCPI. b.thepriceofafixedbasketofgoodsandservicespurchasedbyatypicalconsumer,asdoestheCPI. c.thepricesofallfinalgoodsandservicescurrentlyproduceddomestically,whiletheCPIreflectsthepriceofafixedbasketofgoodsandservicespurchasedbyatypicalconsumer. d.thepriceofafixedbasketofgoodsandservicespurchasedbyatypicalconsumer,whiletheCPIreflectsthepricesofallfinalgoodsandservicesproduceddomestically. 202.TheCPIdiffersfromtheGDPdeflatorinthat a.theCPIisapriceindex,whiletheGDPdeflatorisaninflationindex. b.substitutionbiasisnotaproblemwiththeCPI,butitisaproblemwiththeGDPdeflator. c.increasesinthepricesofforeignproducedgoodsthataresoldtoU.S.consumersshowupintheCPIbutnotintheGDPdeflator. d.increasesinthepricesofdomesticallyproducedgoodsthataresoldtotheU.S.governmentshowupintheCPIbutnotintheGDPdeflator. 203.TheCPIdiffersfromtheGDPdeflatorinthat a.theCPIisaninflationindex,whiletheGDPdeflatorisapriceindex. b.substitutionbiasisnotaproblemwiththeCPI,butitisaproblemwiththeGDPdeflator. c.increasesinthepricesofforeignproducedgoodsthataresoldtoU.S.consumersshowupintheGDPdeflatorbutnotintheCPI. d.increasesinthepricesofdomesticallyproducedgoodsthataresoldtotheU.S.governmentshowupintheGDPdeflatorbutnotintheCPI. 204.Anincreaseinthepriceofdairyproductsproduceddomesticallywillbereflectedin a.boththeGDPdeflatorandtheconsumerpriceindex. b.neithertheGDPdeflatornortheconsumerpriceindex. c.theGDPdeflatorbutnotintheconsumerpriceindex. d.theconsumerpriceindexbutnotintheGDPdeflator. 205.Anincreaseinthepriceofbreadproduceddomesticallywillbereflectedin a.boththeGDPdeflatorandtheconsumerpriceindex. b.neithertheGDPdeflatornortheconsumerpriceindex. c.theGDPdeflatorbutnotintheconsumerpriceindex. d.theconsumerpriceindexbutnotintheGDPdeflator. 206.Ifthepriceofdomesticallyproducedpowertoolsincreases,then a.theconsumerpriceindexandtheGDPdeflatorwillbothincrease. b.theconsumerpriceindexwillincrease,andtheGDPdeflatorwillbeunaffected. c.theconsumerpriceindexwillbeunaffected,andtheGDPdeflatorwillincrease. d.theconsumerpriceindexandtheGDPdeflatorwillbothbeunaffected. 207.AKoreansteelcompanyproducessteelintheUnitedStates,withsomeofitssteelbeingexportedtoothernationsandsomeofitbeingsoldwithintheUnitedStates.Ifthepricesofthissteelincrease,then a.theGDPdeflatorandtheCPIwillbothincrease. b.theGDPdeflatorwillincreaseandtheCPIwillbeunchanged. c.theGDPdeflatorwillbeunchangedandtheCPIwillincrease. d.theGDPdeflatorandtheCPIwillbothbeunchanged. 208.Adecreaseinthepriceofdomesticallyproducedindustrialrobotswillbereflectedin a.boththeGDPdeflatorandtheconsumerpriceindex. b.neithertheGDPdeflatornortheconsumerpriceindex. c.theGDPdeflatorbutnotintheconsumerpriceindex. d.theconsumerpriceindexbutnotintheGDPdeflator. 209.Adecreaseinthepriceofdomesticallyproducednuclearreactorswillbereflectedin a.boththeGDPdeflatorandtheconsumerpriceindex. b.neithertheGDPdeflatornortheconsumerpriceindex. c.theGDPdeflatorbutnotintheconsumerpriceindex. d.theconsumerpriceindexbutnotintheGDPdeflator. 210.IntheUnitedStates,ifthepriceofimportedoilrisessothatthepricesofgasolineandheatingoilrise,thenthe a.GDPdeflatorrisesmuchmorethandoestheconsumerpriceindex. b.consumerpriceindexrisesmuchmorethandoestheGDPdeflator. c.GDPdeflatorandtheconsumerpriceindexrisebyaboutthesameamount. d.consumerpriceindexrisesslightlymorethandoestheGDPdeflator.    

  11) One requirement for an industry to be perfectly competitive is that A) there are no restrictions on entry into or exit from the market. B) there are multiple restrictions on entry into or exit from the market. C) there are many firms selling different products. D) sellers and buyers have imperfect information about prices. E) the many firms sell slightly different products.   […]

    31) According to the liquidity premium theory of the term structure, a downward sloping yield curve indicates that short-term interest rates are expected to A) rise in the future. B) remain unchanged in the future. C) decline moderately in the future. D) decline sharply in the future.   32) According to the liquidity premium theory, a yield curve that is flat means that […]

    31)In which of the following sequences of elements do all members of the sequence have chemical symbols starting with the same letter? a)sulfur, silicon, sodium b)gold, silver, aluminum c)potassium, phosphorus, lead d)more than one correct response e)no correct response       32)Which of the following statements concerning the chemical symbols for the elements is correct? a)All chemical symbols start with the first […]

    71.  If the intended aim of the price floor set in the graph shown was a net increase in the well being of producers, then positive analysis would have us consider: A. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss. B. whether the surplus transferred from consumers to producers is larger than the consumer surplus […]

    41) Companies can enhance the success of their expatriates through a careful selection process. A key criterion to consider when choosing successful expatriate managers is the candidate’s: A) domestic experience. B) essential technical skills. C) personal interests and hobbies. D) spouse and family for adaptability.   42) Sami is on Patents, Inc.’s selection board, which has been assigned to choose an expatriate for […]