The Laffer curve is the locus of
unemployment rate and inflation rate.
the exchange rate and real balance of payment.
the tax rate and total tax revenue.
the interest rate and national income.
drop by 4 percent.
drop by 1 percent.
drop by 2 percent.
remain unchanged.
Two equivalent ways to view GDP are as
the total income of everyone in the economy or the total expenditure on the
economy’s output of goods and services.
total profits of all firms and businesses in the economy or the total consumption of
goods and services by all households in the economy.
total expenditures on all goods produced in the economy or the total income earned
from producing all services in the economy.
total payments made to all workers in the economy or the total profits of all firms
and businesses in the economy.
According to the real business cycle theory, which of the following factors has no
effect on the real income of Taiwan?
Taiwan government increases expenditure.
Typhoon Morakot destroyed Taiwan.
I.T. industry of Taiwan find a new technology to reduce production cost.
the government buys the public equity in the open market.
Which of the following schools especially emphasizes the intertemporal substitution
effect of labor?
The Keynesian school
The real business school
The classical school
The new classical school
Assume that the income velocity of money is constant. If the growth rate of real
income is 5%、the growth rate of monetary quantity is 10%、the nominal interest is 7%
in 2010, according the toe Quantity theory of Money and Fisher equation, the real
interest rate is about
2%
3%
4%
5%
John spends all of the money on cartoon and movie. If the share of income spent on
cartoon is 0.6, if the income elasticity of cartoon is 0.6, the income elasticity of movie
is
0.4
0.6
1.2
1.6
When the output is 100, the vertical distance between average total cost curve and
average variable cost is 2. When the output is 100 200, the vertical distance between
average total cost curve and average variable cost is
2.
1
0.5
0.25
Which of the following statements describes a backward-bending labor supply curve of
Marry?
Every hour that Marry work represents a loss of an hour of leisure.
Marry asked for extra hours this month to pay for her airplane ticket to Florida for
spring break.
When Marry received her last raise, Marry cut back on her overtime hours so that
she could work fewer hours but earn the same amount of money per week.
Marry worked more hours when she was younger.
Which of the following statements about Giffen goods is false?
Giffen goods is an inferior goods.
when the sign of the substitution effect of a Giffen goods is positive, then the sign
of the income effect of it must negative.
the income elasticity of a Giffen goods is negative.
the marginal utility of a Giffen good is always negative.
If the Nash equilibrium of a game is a “prisoner’s dilemma”, we can infer that
there exists some outcome where all the players are better off than the Nash
equilibrium
the players of the game are prisoners.
it is not difficult for the players to reach an cooperative agreement.
prisoner’s dilemma only occurs in a perfect competition market.
If a monopoly market has a positive externality, the goods.
must be over produced.
must be under produced.
must be produced to the social optimal level.
either over produced or under produced are all possible.
Suppose that country A use 2 unit of labor to produce one unit of apple and 4 unit of
labor to produce one unit of orange and country B use 3 unit of labor to produce one
unit of apple and 5 unit of labor to produce one unit of orange. According to the Law
of Comparative Advantage, country A should specialize in producing
apple.
orange.
both apple and orange.
neither apple nor orange.
Which of the following is the goal of a perfect competition firm pursues in the long
run?
zero profit
minimized capacity
minimized total labor cost
maximizing profit.
Moral hazard is a phenomenon caused by
imperfect competition.
imperfect monitoring.
negative externality.
inefficiency of the public enterprise.
Assume that a firm buys all the parts that it puts into an automobile for $1,000, pays its
workers $1,000 to fabricate the automobile, and sells the automobile for $2,20. In this
case, the value added by the automobile company is:
$1,000.
$1,200.
$2,000.
$2,200.
Diminishing marginal returns occur when the total product function is
decreasing.
increasing at a decreasing rate.
increasing at a constant rate.
increasing at an increasing rate.
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