U.S. farmers are concerned about this drop in export demand. What’s the original free
market price in the U.S.?
$2.54
$2.56
$2.65
$2.79
After the drop in export demand, what’s the free market price in the U.S.?
$1.7
$1.63
$1.65
$1.79
What’s the difference in revenue?
$6609million.
$3718million.
$15604million.
$2891 million.
Now suppose the government wants to buy enough wheat to raise the price to $3.50
per bushel. With the drop in export demand, how much wheat would the government
have to buy?
3718
298.8
786.2
891.6
★Suppose the income elasticity of demand for food is 0.5 and the price elasticity of
demand is −1.0 . Suppose also that Felicia spends $10,000 a year on food, the price of
food is $2, and that her income is $25,000.
Assuming that the measures are arc elasticity. Is the sales tax on food caused the price
of food to increase to $2.50, what would happen to her consumption of food?
She will decrease it from 5000 to
4000 units
4500 units
3000 units
1900 units
★Suppose the income elasticity of demand for food is 0.5 and the price elasticity of
demand is −1.0 . Suppose also that Felicia spends $10,000 a year on food, the price of
food is $2, and that her income is $25,000.
Suppose that Felicia gets a tax rebate of $2500 to ease the effect of the sales tax. What
would her consumption of food be now?
4200 units
4195 units
4205 units
4210 units
★Suppose the income elasticity of demand for food is 0.5 and the price elasticity of
demand is −1.0 . Suppose also that Felicia spends $10,000 a year on food, the price of
food is $2, and that her income is $25,000.
When given a rebate equal to the sales tax payments, how much is her income?
$25,200
$27,500
$30,000
$24,109
★Suppose the income elasticity of demand for food is 0.5 and the price elasticity of
demand is −1.0 . Suppose also that Felicia spends $10,000 a year on food, the price of
food is $2, and that her income is $25,000.
Is she better or worse off when given a rebate equal to the sales tax payments?
better
worse
neither better nor worse
we can’t tell
Suppose both companies use the same amounts of capital and output, which will
generate more output?
DISK
FLOPPY
they will both generate the same output
we can’t tell
DISK
FLOPPY
they will both generate the same output
we can’t tell
Assume that capital is limited to 9 hours, but labor has an unlimited supply. For which
company is the marginal product of labor greater ( a = 0.6 , b = 0.4 )?
DISK
FLOPPY
they will both generate the same output
we can’t tell
What’s a necessary and sufficient condition for FLOPPY to exhibit increasing returns
to scale?
log q > log10 + log a + log b
a + b > 1
ab > 1
★A chair manufacturer hires its assembly-line labor for $30 a hour and calculates that the
rental coast of its machinery is $15 per hour. Suppose that a chair can be produced using
4 hours of labor or machinery in any combination.
In this case what do we call capital and labor?
perfect substitutes
perfect complements
long-run covariates
Nash equilibrium determinants
★A chair manufacturer hires its assembly-line labor for $30 a hour and calculates that the
rental coast of its machinery is $15 per hour. Suppose that a chair can be produced using
4 hours of labor or machinery in any combination.
If the firm is using three hours of labor for each hour of machine time, what is it
doing?
minimizing costs of production
maximizing costs of production
neither minimizing nor maximizing costs of production
we don’t know
★A chair manufacturer hires its assembly-line labor for $30 a hour and calculates that the
rental coast of its machinery is $15 per hour. Suppose that a chair can be produced using
4 hours of labor or machinery in any combination.
what’s the function for the isocost line?
TC = 30L + 25K
TC − 45 = 30L +15(K − 3)
TC = K + L + 45
What price of oil would yield a free market price of natural gas of $3.00?
$36.76
$36.63
$33.82
$33.06
What’s the absolute value of the difference between the profits made by Sal’s in the
situations of 22. and 23. respectively?
$67.85
$67.25
$66.45
$66.89
What’s the absolute value of the difference between the consumer surpluses of NYC’s
subscribers in the situations of 22. and 23. respectively?
$336.56
$355.24
$384.49
$337.22
Short-run contractions and expansions in economic activity are called
Recessions
Expansions
Deficits
the business cycle
A country is said to be experiencing deflation when
prices of most goods and services are rising over time..
prices of most goods and services are falling over time.
total output is rising over time.
total output is falling over time.
How did Keynes propose to solve the problem of high unemployment?
Increase the growth rate of the money supply.
Allow wages to decline, so that firms will want to hire more workers.
Put on wage and price controls, so wages won’t rise and firms won’t have to lay
people off to cut costs.
Have the government increase its demand for goods and services.
The three approaches to measuring economic activity are the
cost, income, and expenditure approaches.
product, income, and expenditure approaches.
consumer, business, and government approaches.
private, public, and international approaches.
Intermediate goods are
capital goods, which are used up in the production of other goods but were
produced in earlier periods.
final goods that remain in inventories.
goods that are used up in the production of other goods in the same period that they
were produced.
either capital goods or inventories.
Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors
to other farmers for $50,000. The net increase in GDP of these transactions was
$50,000
$100,000
$125,000
$150,000
When a person gets an increase in current income, what is likely to happen to
consumption and saving?
Consumption increases and saving increases
Consumption increases and saving decreases.
Consumption decreases and saving increases.
Consumption decreases and saving decreases.
The nominal interest rate is 10%, the expected inflation rate is 5%, and the combined
government tax rate is 35%. The expected after-tax real interest rate is
1.50%
3.25%
5.00%
6.50%
The yield curve generally slopes upward because
longer maturity bonds typically pay higher interest rates than shorter maturity
bonds.
longer maturity bonds typically pay lower interest rate than shorter maturity bonds.
shorter maturity bonds have more default risk.
longer maturity bonds are not taxable.
Your firm has capital stock of $10 million and a depreciation rate of 15%. Gross
investment is $3 million. How much is net investment?
$1.5 million
$2.0 million
$2.5 million
$3.5 million
A new pollution law requires businesses to pay for inspections of their plants by
independent pollution-monitoring firms. What effect is this likely to have?
Increase productivity
Increase the capital stock
Reduce productivity
Increase the demand for labor in those firms
Suppose your bank raises its minimum-balance requirement for free checking on
checking accounts by $500. You take $500 out of your passbook savings account and
put it in your checking account. What is the overall effect on M1 and M2?
M1 rises by $500, M2 falls by $500
M1 is unchanged, M2 is unchanged
M1 rises by $500, M2 is unchanged
M1 is unchanged, M2 falls by $500
What’s the most common way for a central bank to reduce the money supply?
Collect higher taxes
Sell bonds to the public
Buy bonds from the government
Buy bonds from the public
The set of assets that a holder of wealth chooses to own is called
an asset assortment
a wealth strategy
a portfolio
an investment envelope
The interest rate on long-term bonds is somewhat higher than suggested by the
expectations theory because
the expectations theory doesn’t account for taxes.
a risk premium exists.
an inflation premium must be added to long-term bonds.
the Fed can only control short-term interest rates.
The IS curve shows the combinations of output and the real interest rate for which
the goods market is in equilibrium
the labor market is in equilibrium
the financial asset market is in equilibrium
an increase in output will cause the market-clearing interest rate to be bid up
Looking only at the asset market, an increase in output would cause
the LM curve to shift down and to the right.
the LM curve to shift up and to the left.
an increase in the real interest rate along the LM curve.
a decrease in the real interest rate along the LM curve.
Suppose the intersection of the IS and LM curves is to the left of the FE line. A
decrease in the price level would most likely eliminate a disequilibrium among the
asset, labor, and goods markets by
shifting the LM curve down and to the right.
shifting the IS curve up and to the right.
shifting the IS curve down and to the left.
shifting the FE curve to the left.
In the efficiency wage model with the efficiency wage above the market-clearing wage,
the level of employment depends on
the intersection of labor supply and labor demand.
the marginal productivity of capital and the marginal productivity of labor.
labor demand alone.
labor supply alone.
A firm is a price taker if it
always sells its output at the industry-determined price
takes consumer demand into consideration in selling its price.
takes its production costs into consideration in setting its price.
uses a pricing strategy to gain market share.
In the Keynesian model in the short run, the amount of employment is determined by
the effective labor demand curve and the level of
prices
output
the real interest rate
the supply of labor
A situation in which expansionary monetary policy bas no effect on the economy is
known as
macroeconomic stabilization.
a liquidity trap.
a depression.
capital flight.
An exchange-rate system in which the nominal exchange rate is set by the government
is known as
a flexible-exchange-rate system
a floating-exchange-rate system
a fixed-exchange-rate system
an exchange-rate union.
A depreciation of the dollar causes
a decrease in U.S. exports
an increase in U.S. imports.
an increase in the prices of U.S. imports.
an increase in the prices of U.S. exports.
There’s been a real depreciation of the dollar over the past month. In the long run, you
would expect the quantity of
American imports to fall and the quantity of American exports to fall.
American imports to rise and the quantity of American exports to rise.
American imports to fall and the quantity of American exports to rise.
American imports to rise and the quantity of American exports to fall.
可觀看題目詳解,並提供模擬測驗!(免費會員無法觀看研究所試題解答)