Economic Questions

1.
Belief in the basic instability of the free market, and faith in the ability of government to
improve on free market outcomes, is associated with which of the following categories of
economists?
Student Response Value Feedback

Keynesian Economists 100%
A.
B. Classical economists
C. Austrian economists
D. All of the above
E. b and c of the above.
Score: 1/1
2.
The marginal product of labor is equal to the

A. incremental cost associated
with a one unit increase in
labor.
B. incremental profit
associated with a one unit
increase in labor.
C. increase in labor necessary
to generate a one unit
increase in output.
increase in output obtained 100%
D. from a one unit increase in
labor.
Score: 1/1
3.
The average amount of goods and services produced from each hour of a worker's time is
called
A. per capita GDP
B. per capita GNP
C. productivity
human capital 0%
D.
Score: 0/1
4.
Figure 1
Consider Figure 1 above. Which of the following is true of the production function (not
pictured) that underlies this total cost function in Figure 1?
(ii) Total output increases as the quantity of inputs increases, but at a decreasing rate.
(ii) Marginal product is diminishing for all levels of input usage.
(iii) The slope of the production function decreases as the quantity of inputs increases.

A. (i) only
(ii) and (iii) 0%
B.
C. (i) and (iii)
D. all of the above are correct.
Score: 0/1
5.
When the consumer price index decreases, the typical family

has to spend more dollars to 0%
A. maintain the same standard
of living.
B. can spend fewer dollars to
maintain the same standard
of living.
C. finds that its standard of
living is not affected.
D. can offset the effects of
rising prices by saving
more.
Score: 0/1
6.
Which goods are supposed to be included in the CPI?

all goods and services that 100%
A. typical consumers buy
B. all goods and services
produced or imported in the
economy
C. all goods and services in the
consumption component of
the GDP accounts
D. all the goods, but not the
services, in the
the GDP accounts
Score: 1/1
7.
Year Peaches Pecans
2000 $20 per bushel $10 per bushel
2001 $21 per bushel $10.5 per bushel
Consider Table 1. What was the rate of inflation in 2001?

A. 20 percent
B. 16.7 percent
C. 10 percent
5 percent 100%
D.
Score: 1/1
8.
If U.S. citizens entrepreneurs increase their demand for loanable funds, other things contstant,
the real interest rate

A. will fall
will rise. 100%
B.
C. will be unaffected
D. it is impossible to say
Score: 1/1
9.
Consider a production function in two factors Q = f(K,L) that is CRS. When the MPK is
falling the MPL is

A. falling
B. rising
C. negative
D. flat
there is no way to tell 0%
E.
Score: 0/1
10.
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed factor.
How would the production function be affected by an improvement in technology?

A. the production function
would be unaffected
the production function 100%
B. would shift vertically
upward
C. the production function
would shift vertically
downward
D. the production function
would disappear
Score: 1/1
11.
Assume a production function that has increasing returns to scale. A doubling of all the inputs
will lead to a ____________ of the output

A. doubling
more than doubling 100%
B.
C. less than doubling
D. zero increase
Score: 1/1
12.
When the rate of inflation is expected to fall, this will lead to

A. an increase in the nominal
rate of interest
B. a decrease in the nominal
rate of interest
C. a decrease in the difference
between the nominal and
the real rates of interest
D. a and c of the above.
b and c of the above. 100%
E.
Score: 1/1
13.
When the US government decreases the interest rate on US Treasury bonds, the dollar price
of imported Chinese manufactured goods can be expected to
A. rise
B. fall
C. be unaffected
none of the above 0%
D.
Score: 0/1
14.
An increase in the Demand for and the supply of loanable funds will cause the quantity of
loanable funds borrowed to

rise 100%
A.
B. fall
C. remain the same
D. it is impossble to say
Score: 1/1
15.
Which of the following will increase the supply of money?

A. an increase in the
propensity of people to save
by purchasing US savings
bonds
the spending by the 100%
B. Treasury of the proceeds of
the sale of new US Treasury
bonds to the Federal
Reserve System
C. a decrease in tax rates
D. a decrease in the deficit
Score: 1/1
16.
Choose the correct statement below By not taking into account the possibility of consumer
substitution, the CPI

A. CPI always correctly
reflects the cost of living
CPI may overstate the cost 100%
B. of living by not taking into
account the possibility of
consumer substitution
C. CPI may understate the cost
of living by not taking into
D. None of the above is correct
Score: 1/1
17.
Which of the following is a current-weighted price index?

A. the CPI
B. the PPI
the GDP deflator. 100%
C.
D. the ESP
Score: 1/1
18.
New products are invented every year. Consequently real GDP growth

probably underestimates 100%
A. the rate of real economic
growth.
B. probably overestimates the
rate of real economic
growth.
C. probably accurately
estimates the rate of real
economic growth.
D. is rarely used.
Score: 1/1
19.
Inputs used in production that are provided by nature, such as land, rivers, and mineral
deposits are called

A. physical capital.
B. human capital.
C. the production function.
Nature resources 100%
D.
Score: 1/1
20.
Which of the following is considered human capital?

A. a new factory building
B. a computer used to help
Mercury Deliver Service
keep track of their orders
knowledge acquired from 100%
C. on-the-job training
D. a desk used in an
accountant's office
Score: 1/1
21.
Across countries, investment and growth rates are
A. negatively related.
positively related. 100%
B.
C. negatively related for
developing countries, but
positively related for
industrial countries.
D. not related
Score: 1/1
22.
International trade

raises the standard of living 100%
A. in all trading countries.
B. lowers the standard of
living in all trading
countries.
C. leaves the standard of living
unchanged.
D. raises the standard of living
for importing countries and
lowers it for exporting
countries
Score: 1/1
23.
When the marginal rate of time preference falls

A. the demand for loanable
funds will fall
the supply of loanable funds 0%
B. will fall
C. interest rates will rise
D. all of the above
Score: 0/1
24.
Which of the following is true?

A. money was invented in the
13th century BC by Sir
John Money
B. money is the result of
complex social evolution
C. Money facilitates exchange
b and c of the above 100%
D.
Score: 1/1
25.
Which of the following is a financial intermediary?

A. Prudential Pension Fund
B. First mutual fund
C. Premium finance company
D. Richardson Credit Union
all of the above are financial 100%
E. intermediaries
Score: 1/1
26.
According to whom is it more important to balance the economy that balance the budget?

A. the Keynesians
B. the Quakers
C. the Monetarists
D.
Score: 0/1
27.
Which bond would you expect to pay the highest interest rate?

A. a bond issued by the U.S.
government
B. a bond issued by General
Motors
C. a bond issued by New York
State
a bond issued by a new 100%
D. restaurant chain
Score: 1/1
28.
Which of the following stakeholders is most concerned that the company earn enough profit
to pay its loans? (hint: consider the incentives faced by each).

debt holders 100%
A.
B. share holders
C. workers
D. managers
Score: 1/1
29.
The price elasticity of demand for a good is -0.50. By how much must the price of the good
decrease in order for sales to rise by 12%?
A. 3%.
B. 4.8%.
C. 12.4%.
24%. 100%
D.
Score: 1/1
30.
Suppose Joe purchases 5 six-packs of beer per month when his monthly income is $100. Joe
receives a raise at work, giving him an extra $20 per month in take-home pay, and Joe now
purchases 6 six-packs of beer per month. What is Joe's income elasticity of demand for beer?

A. 2.
1. 100%
B.
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is

A. unscientific
B. not interested in choice
C. interested only in values
that are traded on the
market
the study of the allocation 100%
D. of scarce means to
alternative uses
Score: 1/1
32.
Which of the following is most likely an inferior good?

A. a Benz
B. steak
spam 100%
C.
D. gasoline
Score: 1/1
33.
Which of the following identifies a natural monopoly?

A. a rising AC curve
throughout the feasible
range of sales
a falling AC curve 100%
B. throughout the feasible
range of sales
C. a constant AC curve
range of sales
D. a falling MC curve
range of sales
E. a rising MC curve
range of sales
Score: 1/1
34.
For a profit maximizing monopolist, who has not costs, TC = 0, the elasticity of demand will
be

A. greater than 1
B. equal to 1
C. less than 1
D. equal to zero
It is hard to tell 0%
E.
Score: 0/1
35.
Figure 2
Consider Figure 2 above. What output will a profit maximizing monopolist who charges
everyone the same price produce?

A. 100
200 100%
B.
C. 300
D. 400
Score: 1/1
36.
Consider Figure 2 above. If the monopolist is able to price discriminate what output will
he/she produce? (pick the best answer).

A. between 100 and 200
B. between 200 and 300
C. between 300 and 400
more than 200 100%
D.
Score: 1/1
37.
Which of the following conditions shifts the supply curve?
A. an improvement in
technology
B. increase in consumer
income
C. a change in price of raw
material
D. a and b of the above
a and c of the above 100%
E.
Score: 1/1
38.
Which of the following conditions shifts the demand curve?

technology
income
C. a change in consumer base
E.
Score: 1/1
39.
A simultaneous decrease in both the demand for computers and the supply of computers must
decrease

the number of computers 100%
A. bought and sold
B. the price of computers.
C. both the equilibrium price
and quantity of computers.
D. the shortage of computers
in the market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been falling, and the quantity of gasoline
sold has also been rising. We can conclude that

A. the law of supply does not
hold for gasoline.
B. the law of demand does not
hold for gasoline.
C. the demand for gasoline
must have risen
the supply of gasoline must 100%
D. have risen
Score: 1/1
41.

A. 3%.
B. 4.8%.
C. 12.4%.
30% 100%
D.
Score: 1/1
42.
Under which of the following circumstances will the seller pay the whole of an excise tax?

when the supply curve has a 100%
A. zero elasticity
B. when the demand curve has
a zero elasticity
C. when the tax is collected
from the buyer
D. when the tax is imposed on
the buyer
Score: 1/1
43.
The following three questions refer to the accompanying diagram.
Figure 3:
Refer to Figure 3 above. A sales tax is imposed on consumers. The initial price and quantity
are P0 and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms
receive the price Ps, and consumers pay the price Pd.
Area C + D + F + G is

the tax revenue collected by 100%
A. the government.
B. the total value that
consumers receive from
their purchases.
C. the fall in producers’
surplus.
D. the deadweight loss due to
the tax.
Score: 1/1
44.
Refer to Figure 3 below. Which is the deadweight loss from the imposition of the sales tax?
A. E
E+H 100%
B.
C. H
D. J
E. E+H+J
Score: 1/1
45.
Forget about the sales tax. Use the same Figure 3 below. The imposition of a fully effective
price ceiling at Ps will cause a deadweight loss of

A. E
E+H 0%
B.
C. C + F +D + G + E + H
D. J
E. E+H+J
Score: 0/1
46.
When a simple monopolist – no price discrimination – chooses to sell an additional unit of a
good or service

A. marginal revenue will be
equal to the going market
price.
B. marginal revenue will
always be negative.
it will have to lower its 100%
C. price on the additional unit
and on all other units.
D. it will only have to lower its
price on the additional unit.
Score: 1/1
47.
Use the table below to answer the following two questions.
Total Average Marginal

Quantity Price Revenue Revenue Revenue
1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Refer to Table above. If the monopolist wants to maximize its revenue, how many units of its
product should it sell?

A. 4
B. 5
6 100%
C.
D. 8
Score: 1/1
48.
Refer to the same Table.
1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Assume this monopolist’s marginal cost is constant at $11. What quantity of output (Q) will
it produce and what price (P) will it charge?

A. Q = 4, P = $27
B. Q = 4, P = $25
Q = 5, P = $23 100%
C.
D. Q = 7, P = $17
Score: 1/1
49.
Suppose that the price of widgets is $10. Every competitive firm in the widgets industry has
fixed costs of $10 and faces the following marginal cost curve:
Quantity Marginal Cost

1 $4
2 6
3 8
4 10
5 12
How many widgets does a firm produce?

A. 2
B. 3
4 100%
C.
D. 5
Score: 1/1
50.
Use the same table below. Every competitive firm in the widgets industry has fixed costs of
$10 and faces the following marginal cost curve:

1 $4
2 6
3 8
4 10
5 12
How much profit does the firm earn?

A. 2
B. 6
C. 8
10 0%
D.
Score: 0/1
1.
An open economy's GDP is given by
Student Response Feedback
A. Y = C + I + G.
B. Y = C + I + G + T.
C. Y = C + I + G + S.
D. Y = C + I + G + NX.
Score: 0/1
2.
A. incremental revenue associated

with a one unit increase in labor.
B. incremental profit associated with a

one unit increase in labor.
C. increase in capital necessary to

keep labor employed
D. increase in output obtained from a

one unit increase in labor.
Score: 1/1
3.
called
A. per capita GDP
B. per capita GNP

C. productivity
D. human capital
Score: 1/1
4.
Figure 1
(i) Total output increases as the quantity of inputs increases, but at a fluctuating rate.
A. (i) only
B. (ii) and (iii)
C. (i) and (iii)
Score: 1/1
5.
When the consumer price index rises, the typical family
A. has to spend more dollars to

maintain the same standard of
living.
B. can spend fewer dollars to maintain

the same standard of living.
C. finds that its standard of living is

not affected.
D. can offset the effects of rising prices
by saving more.
Score: 1/1
6.
A. all goods and services produced in

the economy
B. all goods and services that typical

consumers buy

consumption component of the GDP
accounts
D. all the goods, but not the services,

in the consumption component of
the GDP accounts
Score: 1/1
7.
Year Peaches Pecans
A. 20 percent
B. 16.7 percent
C. 10 percent
D. 5 percent
Score: 1/1
8.
If U.S. citizens decide to save a larger fraction of their incomes, the real interest rate
A. decreases, the real exchange rate

of the dollar depreciates, and U.S.
net capital outflow increases.
B. decreases, the real exchange rate

of the dollar appreciates, and U.S.
net capital outflow decreases.
C. increases, the real exchange rate of

the dollar appreciates, and U.S. net
capital outflow decreases.
D. increases, the real exchange rate of

the dollar depreciates, and U.S. net
capital outflow increases.
Score: 1/1
9.
Consider a production function in two factors Q = f(K,L) that is CRS. When the MPK is rising
the MPL is
A. falling
B. rising
C. negative
D. flat
E. there is no way to tell
Score: 0/1
10.
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed factor. In
what circumstance that the production function would shift vertically upward?
A. An improvement in technology
B. Labor cost increases
C. Labor cost decreases
D. It is impossible that the production

function would shift
Score: 1/1
11.
Assume a production function that has increasing returns to scale. A doubling of all the
inputs will lead to a ____________ of the output
A. doubling
B. more than doubling
D. zero increase
Score: 1/1
12.
When the rate of inflation is expected to rise, this will lead to

A. an increase in the nominal rate of

interest
B. a decrease in the nominal rate of

interest
C. a increase in the difference

between the nominal and the real
rates of interest
Score: 1/1
13.
When net capital inflow is negative, net exports must be
A. positive
B. negative
C. zero
D. none of the above
Score: 1/1
14.
Which of the following would do the most to reduce a trade ?
A. increasing domestic saving
B. increasing political stability and

respect for property rights
C. negotiating with other countries to

get them to reduce their trade
restrictions
D. imposing higher tariffs on imported

goods
Score: 1/1
15.
Which of the following will increase U.S. net capital inflow?
A. capital flight from the United States
B. the government budget deficit

increases (and domestic borrowing
is maxed out)
C. the U.S. imposes import quotas
Score: 0/1
16.
A. CPI always correctly reflects the

cost of living
B. CPI may overstate the cost of living

by not taking into account the
possibility of consumer substitution
C. CPI may understate the cost of

living by not taking into account the
possibility of consumer substitution
Score: 1/1
17.
A. the CPI
B. the PPI
C. the GDP deflator.
D. the ESP
Score: 1/1
18.
Choose the correct statement below New products are invented every year. Consequently
real GDP growth
A. probably underestimates the rate of

real economic growth.
B. probably overestimates the rate of

real economic growth.
C. real GDP growth is rarely used
Score: 1/1
19.
The knowledge and skills that workers acquire through education, training, and experience
are called
B. human capital.

D. technology.
Score: 1/1
20.
A. knowledge acquired from early

childhood education programs
B. knowledge acquired from grade

school
C. knowledge acquired from on-the-

job training
D. All of the above are correct.
Score: 1/1
21.
B. positively related.
C. negatively related for developing

countries, but positively related for
D. not related
Score: 1/1
22.
International trade
A. lowers the standard of living in all

trading countries.
B. raises the standard of living in all

trading countries.
C. raises the standard of living for

exporting countries and lowers it
for importing countries
D. raises the standard of living for

importing countries and lowers it
for exporting countries
Score: 1/1
23.
A. the demand for loanable funds will

fall
B. the supply of loanable funds will fall
D. all of the above
Score: 1/1
24.
A. money was invented in the 12th

century BC by Sir John Money
B. money is the result of complex

social evolution
C. money's origins are to be found the
government safeguards of legal
tender
D. a and c of the above
Score: 1/1
25.
B. Bank One
C. Traveler's Insurance
E. all of the above are financial

intermediaries
Score: 1/1
26.
Which of the following equations is correct?
A. S = I + C
B. S = I - NX
C. S = I + NCO
D. S = NX - NCO.
Score: 1/1
27.

government
B. a bond issued by General Motors
C. a bond issued by New York State
D. a bond issued by a new restaurant

chain
Score: 1/1
28.
A. the board of directors
B. share holders
C. debt holders
D. workers
Score: 1/1
29.
A. 3%.
B. 12%.
C. 20%.
D. 24%.
Score: 1/1
30.
Suppose Joe purchases 5 six-packs of beer per month when his monthly income is $100.
Joe receives a raise at work, giving him an extra $20 per month in take-home pay, and Joe
now purchases 6 six-packs of beer per month. What is Joe's income elasticity of demand
for beer?
A. 2.
B. 1.
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is
A. unscientific
B. interested in choice
C. interested only in values that are

traded on the market
D. the study of the allocation of scarce

means to alternative uses
E. b and d of the above
Score: 1/1
32.
A. a Benz
B. steak
C. spam
D. gasoline
Score: 1/1
33.
A. a rising AC curve throughout the

feasible range of sales
B. a falling AC curve throughout the

C. a constant AC curve throughout the

D. a falling MC curve throughout the

Score: 1/1
34.
For a profit maximizing monopolist, who has not costs, TC = 0, the elasticity of demand
will be
A. greater than 1
B. equal to 1
C. less than 1
D. equal to zero
E. It is hard to tell
Score: 1/1
35.
Figure 2
A. 100
B. 200
C. 300
D. 400
Score: 1/1
36.
D. more than 200
Score: 1/1
37.

A. an improvement in technology
B. increase in consumer income
C. a change in price of raw material
E. a and c of the above
Score: 1/1
38.
E. b and c of the above
Score: 0/1
39.
A simultaneous decrease in both the demand for computers and the supply of computers
must decrease
A. the number of computers bought

and sold
C. both the equilibrium price and

quantity of computers.
D. the shortage of computers in the

market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been rising, and the quantity of gasoline
A. the law of supply does not hold for

gasoline.
B. the law of demand does not hold for

gasoline.
C. the demand for gasoline must have

risen
D. the supply of gasoline must have

fallen
Score: 1/1
41.
decrease in order for the number of units sold to rise by 12%?
A. 3%.
B. 4.8%.
C. 12.4%.
D. 30%
Score: 10/10
42.
Under which of the following circumstances will the seller pay the whole of a per-unit tax?
A. when the supply curve is vertical
B. when the demand curve is vertical
C. when the tax is collected from the

buyer
D. when the tax is imposed on the

buyer
Score: 10/10
43.
The following two questions refer to the accompanying diagram.
Refer to the figure above. A per-unit tax is imposed on consumers. The initial price and
quantity are P0
and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive
the price Ps, and consumers pay the price PD.
Area B + C is
A. the tax revenue collected by the

government.
B. the total value that consumers

receive from their purchases.
C. the fall in producers’ surplus.
D. the deadweight loss due to the tax.
Score: 10/10
44.
Refer to the same figure below.

Which areas represent the deadweight loss from the imposition of the per-unit tax?
A. E
B. E + F
C. B + C
D. A + B + E
E. C + F + D
Score: 10/10
45.
Refer to the similar figure below.
Assuming the imposition of a fully effective price ceiling at P S the quantity produced will
be?
A. Q1
B. Q0
C. between Q1 and Q0
D. less than Q1
E. more than Q0
Score: 10/10
46.
When a simple monopolist – no price discrimination – chooses to sell an additional unit of

a good or service
A. marginal revenue will be equal to

the going market price.
B. marginal revenue will always be

negative.
C. it will have to lower its price on the

additional unit and on all other
units.
D. it will only have to lower its price on

the additional unit.
Score: 10/10
47.

Quantity Price Total Average Marginal
Revenue Revenue Revenue

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Refer to Table above. If the monopolist wants to maximize its revenue, how many units
of its product should it sell?
A. 4
B. 5
C. 6
D. 8
Score: 10/10
48.


1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Assume this monopolist’s marginal cost is constant at $11. What quantity of output (Q)
will it produce and what price (P) will it charge if it wants to maximize its profits?
A. Q = 4, P = $27
B. Q = 4, P = $25
C. Q = 5, P = $23
D. Q = 7, P = $17
Score: 10/10
49.
Suppose that the price of widgets is $10. Every competitive firm in the widgets industry
has fixed costs of $10 and faces the following marginal cost curve:
1 $4
2 6
3 8
4 10
5 12
How many widgets does a firm produce, assuming it wishes to maximize profits?
A. 2
B. 3
C. 4
D. 5
Score: 10/10
50.
Use the same table below. Every competitive firm in the widgets industry has fixed costs
of $10 and faces the following marginal cost curve,
1 $4
2 6
3 8
4 10
5 12
How much profit does the firm earn when it maximizes profit?
A. 2
B. 6
C. 8
D. 10
Score: 10/10
1.
Belief in the basic stability of the free market, and doubt about the ability of
government to improve on free market outcomes, is associated with which of the
following categories of economists?
A. Keynesians
D. All of the above
E. b and c of the above. 100%
Score: 1/1
2.
A. incremental revenue
associated with a one
unit increase in labor.
C. increase in capital
necessary to keep labor
employed
D. increase in output 100%

obtained from a one unit
increase in labor.
Score: 1/1
3.
An decrease in the amount of human capital per worker will most likely result in
A. a decrease in 100%
productivity
B. an increase in
productivity
C. no effect on productivity
Score: 1/1
4.
Figure 1
Consider Figure 1 above. Which of the following is true of the production function
(not pictured) that underlies this total cost function in Figure 1?
(ii) Total output increases as the quantity of inputs increases, but at a
fluctuating rate.
(iii) The slope of the production function decreases as the quantity of inputs
increases.
A. (i) only
B. (ii) and (iii) 100%
C. (i) and (iii)
D. all of the above are

correct.
Score: 1/1
5.

A. has to spend more

dollars to maintain the
same standard of living.
B. can spend fewer dollars 100%

to maintain the same
standard of living.


more.
Score: 1/1
6.
A. all goods and services 100%

that typical consumers
buy

produced or imported in
the economy
C. all goods and services in

the consumption
component of the GDP
accounts

services, in the
consumption component
of the GDP accounts
Score: 1/1
7.
Year Peaches Pecans
A. 20 percent
B. 16.7 percent
C. 10 percent 100%
D. 8 percent
Score: 1/1
8.
If U.S. citizens decide to save a larger fraction of their incomes, other things
contstant, the real interest rate
A. will fall 100%
B. will rise.
Score: 1/1
9.
Consider a production function in two factors Q = f(K,L) that is CRS. When the MPK
is falling the MPL is
A. falling
B. rising
C. negative 0%
D. flat
Score: 0/1
10.
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed

factor. How would the production function be an increase in the amount of K to a
new fixed level?

would be unaffected
B. the production function

downward
C. the production function 100%

upward

would disappear
Score: 1/1
11.
Assume a production function that has increasing returns to scale. A doubling of all
the inputs will lead to a ____________ of the output
A. doubling
B. more than doubling 100%
D. zero increase
Score: 1/1
12.
nominal rate of interest
B. a decrease in the
C. a increase in the
difference between the
nominal and the real
rates of interest
D. a and c of the above. 100%
Score: 1/1
13.
When the Chinese government decreases its demand for US Treasury bonds, the
dollar price of imported Chinese manufactured goods will
A. rise
B. fall 100%
C. be unaffected
Score: 1/1
14.
An increase in the Demand for and the supply of loanable funds will cause the
interest rate to
A. rise
B. fall
C. remain the same
D. it is impossble to say 100%
Score: 1/1
15.
Which of the following will decrease the supply of money?
propensity of people to
save by purchasing US
savings bonds
B. the sale by the Federal 100%

Reserve System of
existing US bonds
Score: 1/1
16.
Choose the correct statement below By not taking into account the possibility of
consumer substitution, the CPI

B. CPI may overstate the 100%

cost of living by not
taking into account the
possibility of consumer
substitution
C. CPI may understate the

substitution
D. None of the above is

correct
Score: 1/1
17.
A. the CPI
B. the PPI
C. the GDP deflator. 100%
D. the ESP
Score: 1/1
18.
A. probably accurately
economic growth.
B. probably overestimates
the rate of real economic
growth.
C. probably underestimates 100%

growth.
D. is rarely used.
Score: 1/1
19.
The knowledge and skills that workers acquire through education, training, and
experience are called
B. human capital. 100%
D. technology.
Score: 1/1
20.

keep track of their
orders
C. knowledge acquired 100%

from on-the-job training
accountant's office
Score: 1/1
21.
B. positively related. 100%

developing countries,
but positively related for
D. not related
Score: 1/1
22.
International trade
A. raises the standard of 100%

countries.

countries.
C. leaves the standard of

living unchanged.
D. raises the standard of

living for importing
countries and lowers it
Score: 1/1
23.
A. the demand for loanable 100%

funds will fall
B. the supply of loanable

funds will fall
D. all of the above
Score: 1/1
24.
A. money was invented in

the 12th century BC by
Sir John Money
B. money is the result of 100%

C. money's origins are to

be found the
government safeguards
of legal tender
Score: 1/1
25.

B. Bank One
E. all of the above are 100%

financial intermediaries
Score: 1/1
26.
According to whom is it more important to balance the economy that balance the
budget?
A. the Keynesians
B. the Quakers 0%
C. the Monetarists
Score: 0/1
27.
A. a bond issued by the

U.S. government
B. a bond issued by IBM
C. a bond issued by New

York State
D. a bond issued by a new 100%

food company
Score: 1/1
28.
Which of the following stakeholders is most concerned that the company earn
enough profit to pay its loans? (hint: consider the incentives faced by each).
B. share holders
C. debt holders 100%
D. workers
Score: 1/1
29.
The price elasticity of demand for a good is -0.50. By how much must the price of
the good decrease in order for sales to rise by 12%?
A. 3%.
B. 4.8%.
C. 12.4%.
D. 24%. 100%
Score: 1/1
30.
Suppose Joe purchases 5 six-packs of beer per month when his monthly income is
$100. Joe receives a raise at work, giving him an extra $20 per month in take-home
pay, and Joe now purchases 6 six-packs of beer per month. What is Joe's income
elasticity of demand for beer?
A. 2.
B. 1. 100%
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is
A. unscientific

market
D. the study of the

allocation of scarce
means to alternative
uses
E. b and d of the above 100%
Score: 1/1
32.
A. a Benz
B. steak
C. gasoline
D. canned food 100%

Score: 1/1
33.
range of sales
B. a falling AC curve 100%

range of sales
range of sales
range of sales
range of sales
Score: 1/1
34.
For a profit maximizing monopolist, who has not costs, TC = 0, the elasticity of
demand will be
A. greater than 1
B. equal to 1 100%
C. less than 1
D. equal to zero
Score: 1/1
35.
Figure 2
Consider Figure 2 above. What output will a profit maximizing monopolist who
charges everyone the same price produce?
A. 100
B. 200 100%
C. 300
D. 400
Score: 1/1
36.
Consider Figure 2 above. If the monopolist is able to price discriminate what output
will he/she produce? (pick the best answer).
D. more than 200 100%
Score: 1/1
37.

A. an improvement in 100%
technology
B. in crease in consumer
income
C. a change in consumer
base
Score: 1/1
38.
A. a change in price of raw

material
B. an improvement in
technology
C. a change in consumer 100%

taste
Score: 1/1
39.
A simultaneous decrease in both the demand for computers and the supply of
computers must decrease
A. the number of 100%

computers bought and
sold
C. both the equilibrium

price and quantity of
computers.
D. the shortage of
computers in the
market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been rising, and the quantity of
gasoline sold has been falling. We can conclude that
A. the law of supply does

not hold for gasoline.
B. the law of demand does


must have fallen
D. the supply of gasoline 100%

must have fallen
Score: 1/1
41.
A. 3%.
B. 4.8%.
C. 12.4%.
D. 30% 100%
Score: 1/1
42.
Under which of the following circumstances will the seller pay the whole of an excise
tax?
A. when the supply curve 100%

has a zero elasticity
B. when the demand curve


from the buyer
D. when the tax is imposed

on the buyer
Score: 1/1
43.

Figure 3:
Refer to Figure 3 above. A sales tax is imposed on consumers. The initial price and
quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium
quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
A. the tax revenue 100%

collected by the
government.

their purchases.

surplus.
D. the deadweight loss due

to the tax.
Score: 1/1
44.
Refer to Figure 3 below. Which is the deadweight loss from the imposition of the
sales tax?
A. E
B. E + H 100%
C. H
D. J
E. E + H + J
Score: 1/1
45.
Forget about the sales tax. Use the same Figure 3 below. The imposition of a fully
effective price ceiling at Ps will cause a deadweight loss of
A. E
B. E + H
C. C + F +D + G + E + H 100%
D. J
E. E + H + J
Score: 1/1
46.
When a simple monopolist – no price discrimination – chooses to sell an additional

unit of a good or service

equal to the going
market price.

always be negative.
C. it will have to lower its 100%

price on the additional
unit and on all other
units.
D. it will only have to lower

its price on the
additional unit.
Score: 1/1
47.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Refer to Table above. If the monopolist wants to maximize its revenue, how many
units of its product should it sell?
A. 4
B. 5
C. 6 100%
D. 8
Score: 1/1
48.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
Assume this monopolist’s marginal cost is constant at $11. What quantity of output
(Q) will it produce and what price (P) will it charge?
A. Q = 4, P = $27
B. Q = 4, P = $25
C. Q = 5, P = $23 100%
D. Q = 7, P = $17
Score: 1/1
49.
Suppose that the price of widgets is $10. Every competitive firm in the widgets
industry has fixed costs of $10 and faces the following marginal cost curve:

1 $4
2 6
3 8
4 10
5 12
A. 2
B. 3
C. 4 100%
D. 5
Score: 1/1
50.
Use the same table below. Every competitive firm in the widgets industry has fixed
costs of $10 and faces the following marginal cost curve:

1 $4
2 6
3 8
4 10
5 12
A. 2 100%
B. 6
C. 8
D. 10
Score: 1/1
1.
Belief in the basic stability of the free market, and doubt about the ability of government to
economists?

A. Keynesians
D. All of the above
E.
Score: 1/1
2.

increase in labor.
increase in labor.
C. increase in capital
necessary to keep labor
employed
labor.
Score: 1/1
3.
called

A. per capita GDP
B. per capita GNP
productivity 100%
C.
D. human capital
Score: 1/1
4.
Figure 1
(ii) Total output increases as the quantity of inputs increases, but at a fluctuating rate.

A. (i) only
(ii) and (iii) 100%
B.
C. (i) and (iii)
Score: 1/1
5.

of living.
can spend fewer dollars to 100%
B. maintain the same standard
of living.
more.
Score: 1/1
6.
produced in the economy
the GDP accounts
services, in the
the GDP accounts
Score: 1/1
7.
Year Peaches Pecans

A. 20 percent
B. 16.7 percent
10 percent 100%
C.
D. 8 percent
Score: 1/1
8.
If U.S. citizens decide to save a larger fraction of their incomes, other things contstant, the
real interest rate

will fall 100%
A.
B. will rise.
Score: 1/1
9.
rising the MPL is

A. falling
rising 0%
B.
C. negative
D. flat
Score: 0/1
10.
How would the production function be an increase in the amount of K to a new fixed level?

would be unaffected
downward
C. would shift vertically
upward
would disappear
Score: 1/1
11.
Assume a production function that has constant returns to scale. A doubling of all the inputs
doubling 100%
A.
D. zero increase
Score: 1/1
12.

rate of interest
rate of interest
E.
Score: 1/1
13.
When the Chinese government decreases its demand for US Treasury bonds, the dollar price
of imported Chinese manufactured goods will

A. rise
fall 100%
B.
C. be unaffected
Score: 1/1
14.
An increase in the Demand for and the supply of loanable funds will cause the interest rate to

A. rise
B. fall
C. remain the same
it is impossble to say 100%
D.
Score: 1/1
15.

bonds
the sale by the Federal 100%
B. Reserve System of existing
US bonds
Score: 1/1
16.

Score: 1/1
17.

A. the CPI
B. the PPI
C.
D. the ESP
Score: 1/1
18.

growth.
growth.
economic growth.
D. is rarely used.
Score: 1/1
19.
The equipment and structures available to produce goods and services are called
physical capital. 100%
A.
B. human capital.
D. technology.
Score: 1/1
20.
Which of the following is considered physical capital?

Tools used to build 100%
A. furniture
B. Land, rivers, and mineral
deposits
C. knowledge acquired from
on-the-job training
D. All of the above are correct
Score: 1/1
21.

B.
D. not related
Score: 1/1
22.
International trade

A. leaves the standard of living
unchanged
B. in all trading countries.
C. raises the standard of living
for exporting countries and
lowers it for importing
countries
countries
Score: 1/1
23.

the demand for loanable 100%
A. funds will fall
B. the supply of loanable funds
will fall
D. all of the above
Score: 1/1
24.

John Money
D.
Score: 1/1
25.

E. intermediaries
Score: 1/1
26.
According to whom is inflation always and everywhere a monetary phenomenon?

A. the Keynesians
B. the Quakers
the Monetarists 100%
C.
Score: 1/1
27.

government
State
a bond issued by a new food 100%
D. company
Score: 1/1
28.

debt holders 100%
A.
B. share holders
C. workers
D. managers
Score: 1/1
29.

A. 3%.
B. 4.8%.
C. 12.4%.
24%. 100%
D.
Score: 1/1
30.
A. 2.
1. 100%
B.
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is

A. unscientific
market
D. the study of the allocation
of scarce means to
alternative uses
b and d of the above 100%
E.
Score: 1/1
32.

A. a Porsche
B. gasoline
spam 100%
C.
D. steak
Score: 1/1
33.

range of sales
range of sales
range of sales
range of sales
Score: 1/1
34.
be

A. greater than 1
equal to 1 100%
B.
C. less than 1
D. equal to zero
Score: 1/1
35.
Figure 2
A. 100
200 100%
B.
C. 300
D. 400
Score: 1/1
36.

more than 200 100%
D.
Score: 1/1
37.

technology
income
material
E.
Score: 1/1
38.

technology
income
C. a change in consumer tastes
E.
Score: 1/1
39.
decrease

A. bought and sold
in the market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been rising, and the quantity of gasoline

hold for gasoline.
hold for gasoline.
the demand for gasoline 100%
C. must have risen
D. the supply of gasoline must
have fallen
Score: 1/1
41.

A. 3%.
B. 4.8%.
C. 12.4%.
30% 100%
D.
Score: 1/1
42.

A. zero elasticity
a zero elasticity
from the buyer
the buyer
Score: 1/1
43.
Figure 3:

A. the government.
their purchases.
surplus.
the tax.
Score: 1/1
44.

A. E
E+H 100%
B.
C. H
D. J
E. E+H+J
Score: 1/1
45.

A. E
B. E+H
C + F +D + G + E + H 100%
C.
D. J
E. E+H+J
Score: 1/1
46.
good or service

price.
always be negative.
Score: 1/1
47.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13

A. 4
B. 5
6 100%
C.
D. 8
Score: 1/1
48.
1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13

A. Q = 4, P = $27
B. Q = 4, P = $25
Q = 5, P = $23 100%
C.
D. Q = 7, P = $17
Score: 1/1
49.

1 $4
2 6
3 8
4 10
5 12

A. 2
B. 3
4 100%
C.
D. 5
Score: 1/1
50.

1 $4
2 6
3 8
4 10
5 12

2 100%
A.
B. 6
C. 8
D. 10
Score: 1/1
1.
A. Keynesians
D. All of the above

Score: 1/1
2.
A. incremental cost
C. increase in labor
necessary to generate a
one unit increase in
output.
D. increase in output 100%

obtained from a one unit
increase in labor.
Score: 1/1
3.
productivity
B. an increase in
productivity
Score: 1/1
4.
Figure 1
Consider Figure 1 above. Which of the following is true of the production function
(ii) Total output increases as the quantity of inputs increases, but at a decreasing
rate.
(iii) The slope of the production function fluctuates as the quantity of inputs
increases.
A. (i) only
B. (ii) and (iii) 0%
C. (i) and (ii)
D. all of the above are

correct.
Score: 0/1
5.
What is the relationship between consumer price index and spending of typical family
in order to maintain the same standard of living?
A. When the consumer 100%

price index decreases,
the typical family can
spend less
B. When the consumer

price index rises, the
typical family can spend
less
C. When the consumer
price index decreases,
the typical family has to
spend more
D. The fluctuation of
consumer price index is
nothing to do with
spending of family
Score: 1/1
6.
A. all goods and services

produced in the
economy
B. all goods and services 100%

that typical consumers
buy
C. all goods and services in

the consumption
component of the GDP
accounts

services, in the
consumption component
of the GDP accounts
Score: 1/1
7.
Year Peaches Pecans

A. 20 percent
B. 16.7 percent
C. 10 percent 100%
D. 8 percent
Score: 1/1
8.
If U.S. citizens entrepreneurs increase their demand for loanable funds, other things
contstant, the real interest rate
A. will fall
B. will rise. 100%
Score: 1/1
9.
A. falling
B. rising
C. negative
D. flat 0%
Score: 0/1
10.
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed

factor. How would the production function be affected by an improvement in
technology?

would be unaffected
B. the production function 100%

upward

downward

would disappear
Score: 1/1
11.
Assume a production function that has constant returns to scale. A doubling of all
A. doubling 100%
D. zero increase
Score: 1/1
12.
A. an increase in the 100%

C. a decrease in the
rates of interest
Score: 1/1
13.
When the US government decreases the interest rate on US Treasury bonds, the
dollar price of imported Chinese manufactured goods can be expected to
A. rise
B. fall 100%
C. be unaffected
Score: 1/1
14.
An increase in the Demand for and the supply of loanable funds will cause the
interest rate to
A. rise
B. fall
C. remain the same
D. it is impossble to say 100%
Score: 1/1
15.
propensity of people to
save by purchasing US
savings bonds
B. the spending by the 100%

Treasury of the proceeds
of the sale of new US
Treasury bonds to the
Federal Reserve System
Score: 1/1
16.

B. CPI may overstate the 100%
substitution
C. CPI may understate the

substitution

correct
Score: 1/1
17.
A. the CPI
B. the PPI
C. the GDP deflator. 100%
D. the ESP
Score: 1/1
18.
Choose the correct statement below New products are invented every year.
Consequently real GDP growth
A. probably underestimates 100%

growth.
B. probably overestimates
growth.
C. real GDP growth is rare

used

correct
Score: 1/1
19.
B. human capital. 100%
D. technology.
Score: 1/1
20.
A. Tools used to build 100%

furniture

deposits
C. knowledge acquired
from on-the-job training
D. All of the above are

correct
Score: 1/1
21.
B. positively related. 100%

developing countries,
but positively related for
D. not related
Score: 1/1
22.
International trade
A. raises the standard of 100%

countries.

countries.
C. leaves the standard of

living unchanged.
D. raises the standard of

living for importing
countries and lowers it
Score: 1/1
23.
A. the demand for loanable 100%

funds will fall
B. the supply of loanable

funds will fall
D. all of the above
Score: 1/1
24.
A. money is the result of 0%

B. Money facilitates
production
C. Money facilitates
exchange
D. all of the above
Score: 0/1
25.
B. Bank One
C. Premium finance
company
E. all of the above are 100%

financial intermediaries
Score: 1/1
26.
budget?
A. the Keynesians 100%
B. the Quakers
C. the Monetarists
Score: 1/1
27.
A. a bond issued by the

U.S. government

Motors
C. a bond issued by New

York State
D. a bond issued by a new 100%

restaurant chain
Score: 1/1
28.
Which of the following stakeholders is most concerned that the company earn
enough profit to pay its loans? (hint: consider the incentives faced by each).
A. debt holders 100%
B. share holders
C. workers
D. managers
Score: 1/1
29.
A. 3%.
B. 12%. 100%
C. 20%.
D. 24%.
Score: 1/1
30.
A. 2.
B. 1. 100%
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is
A. unscientific

market
D. the study of the 100%

allocation of scarce
means to alternative
uses
Score: 1/1
32.
A. a Benz
B. steak
C. gasoline
D. canned food 100%
Score: 1/1
33.

range of sales
B. a falling AC curve 100%

range of sales
range of sales
range of sales
Score: 1/1
34.
demand will be
A. greater than 1
B. equal to 1 100%
C. less than 1
D. equal to zero
Score: 1/1
35.
Figure 2
Consider Figure 2 above. What output will a profit maximizing monopolist who
charges everyone the same price produce?
A. 100
B. 200 100%
C. 300
D. 400
Score: 1/1
36.
D. more than 200 100%
Score: 1/1
37.
technology
income

material
E. a and c of the above 100%
Score: 1/1
38.
technology
income
tastes
E. b and c of the above 100%
Score: 1/1
39.
A. the number of 100%

computers bought and
sold
C. both the equilibrium

price and quantity of
computers.
D. the shortage of
computers in the
market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been falling, and the quantity of
gasoline sold has also been rising. We can conclude that



must have risen

must have risen
Score: 1/1
41.
A. 3%.
B. 4.8%.
C. 12.4%.
D. 30% 100%
Score: 1/1
42.
Under which of the following circumstances will the seller pay the whole of an excise
tax?
A. when the supply curve 100%

B. when the demand curve


from the buyer
D. when the tax is imposed

on the buyer
Score: 1/1
43.

Figure 3:
Refer to Figure 3 above. A sales tax is imposed on consumers. The initial price and
quantity are P0 and Q0, respectively. After the tax is imposed, the equilibrium
quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
A. the tax revenue 100%

collected by the
government.

their purchases.

surplus.
D. the deadweight loss due

to the tax.
Score: 1/1
44.
Refer to Figure 3 below. Which is the deadweight loss from the imposition of the
sales tax?
A. E
B. E + H 100%
C. H
D. J
E. E + H + J
Score: 1/1
45.
Forget about the sales tax. Use the same Figure 3 below. The imposition of a fully
effective price ceiling at Ps will cause a deadweight loss of
A. E
B. E + H
C. C + F +D + G + E + H 100%
D. J
E. E + H + J
Score: 1/1
46.
When a simple monopolist – no price discrimination – chooses to sell an additional

unit of a good or service

equal to the going
market price.

always be negative.
C. it will have to lower its 100%

price on the additional
unit and on all other
units.
D. it will only have to lower

its price on the
additional unit.
Score: 1/1
47.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
A. 4
B. 5
C. 6 100%
D. 8
Score: 1/1
48.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
(Q) will it produce and what price (P) will it charge?
A. Q = 4, P = $27
B. Q = 4, P = $25
C. Q = 5, P = $23 100%
D. Q = 7, P = $17
Score: 1/1
49.

1 $4
2 6
3 8
4 10
5 12
A. 2
B. 3
C. 4 100%
D. 5
Score: 1/1
50.
costs of $10 and faces the following marginal cost curve:

1 $4
2 6
3 8
4 10
5 12
A. 2 100%
B. 6
C. 8
D. 10
1.
Belief in the basic instability of the free market, and faith in the ability of government to
economists?

A.
D. All of the above
Score: 1/1
2.

A. incremental cost associated
with a one unit increase in
labor.
increase in labor.
C. increase in labor necessary
to generate a one unit
increase in output.
labor.
Score: 1/1
3.
called

A. per capita GDP
B. per capita GNP
C. productivity
human capital 0%
D.
Score: 0/1
4.
Figure 1

A. (i) only
(ii) and (iii) 0%
B.
C. (i) and (iii)
Score: 0/1
5.

has to spend more dollars to 0%
A. maintain the same standard
of living.
of living.
more.
Score: 0/1
6.

produced or imported in the
economy
the GDP accounts
services, in the
the GDP accounts
Score: 1/1
7.
Year Peaches Pecans

A. 20 percent
B. 16.7 percent
C. 10 percent
5 percent 100%
D.
Score: 1/1
8.
If U.S. citizens entrepreneurs increase their demand for loanable funds, other things contstant,
the real interest rate

A. will fall
will rise. 100%
B.
Score: 1/1
9.
falling the MPL is

A. falling
B. rising
C. negative
D. flat
there is no way to tell 0%
E.
Score: 0/1
10.
How would the production function be affected by an improvement in technology?

would be unaffected
B. would shift vertically
upward
downward
would disappear
Score: 1/1
11.
Assume a production function that has increasing returns to scale. A doubling of all the inputs

A. doubling
more than doubling 100%
B.
D. zero increase
Score: 1/1
12.
rate of interest
rate of interest
E.
Score: 1/1
13.
When the US government decreases the interest rate on US Treasury bonds, the dollar price
of imported Chinese manufactured goods can be expected to

A. rise
B. fall
C. be unaffected
D.
Score: 0/1
14.
An increase in the Demand for and the supply of loanable funds will cause the quantity of
loanable funds borrowed to

rise 100%
A.
B. fall
C. remain the same
D. it is impossble to say
Score: 1/1
15.

bonds
the spending by the 100%
B. Treasury of the proceeds of
the sale of new US Treasury
bonds to the Federal
Reserve System
Score: 1/1
16.

Score: 1/1
17.
A. the CPI
B. the PPI
C.
D. the ESP
Score: 1/1
18.

growth.
growth.
economic growth.
D. is rarely used.
Score: 1/1
19.
Inputs used in production that are provided by nature, such as land, rivers, and mineral
deposits are called

B. human capital.
D.
Score: 1/1
20.

knowledge acquired from 100%
C. on-the-job training
accountant's office
Score: 1/1
21.

B.
D. not related
Score: 1/1
22.
International trade

A. in all trading countries.
countries.
C. leaves the standard of living
unchanged.
countries
Score: 1/1
23.

A. the demand for loanable
funds will fall
the supply of loanable funds 0%
B. will fall
D. all of the above
Score: 0/1
24.

John Money
D.
Score: 1/1
25.
E. intermediaries
Score: 1/1
26.
According to whom is it more important to balance the economy that balance the budget?

A. the Keynesians
B. the Quakers
C. the Monetarists
D.
Score: 0/1
27.

government
Motors
State
a bond issued by a new 100%
D. restaurant chain
Score: 1/1
28.

debt holders 100%
A.
B. share holders
C. workers
D. managers
Score: 1/1
29.

A. 3%.
B. 4.8%.
C. 12.4%.
24%. 100%
D.
Score: 1/1
30.

A. 2.
1. 100%
B.
C. 0.3.
D. 0.05.
Score: 1/1
31.
Economics is

A. unscientific
market
the study of the allocation 100%
D. of scarce means to
alternative uses
Score: 1/1
32.

A. a Benz
B. steak
spam 100%
C.
D. gasoline
Score: 1/1
33.

range of sales
range of sales
range of sales
range of sales
range of sales
Score: 1/1
34.
be

A. greater than 1
B. equal to 1
C. less than 1
D. equal to zero
It is hard to tell 0%
E.
Score: 0/1
35.
Figure 2

A. 100
200 100%
B.
C. 300
D. 400
Score: 1/1
36.

more than 200 100%
D.
Score: 1/1
37.

technology
income
material
E.
Score: 1/1
38.

technology
income
E.
Score: 1/1
39.
decrease

A. bought and sold
in the market.
Score: 1/1
40.
Suppose we observe that the price of gasoline has been falling, and the quantity of gasoline

hold for gasoline.
hold for gasoline.
must have risen
D. have risen
Score: 1/1
41.
A. 3%.
B. 4.8%.
C. 12.4%.
30% 100%
D.
Score: 1/1
42.

A. zero elasticity
a zero elasticity
from the buyer
the buyer
Score: 1/1
43.
Figure 3:
A. the government.
their purchases.
surplus.
the tax.
Score: 1/1
44.

A. E
E+H 100%
B.
C. H
D. J
E. E+H+J
Score: 1/1
45.

A. E
E+H 0%
B.
C. C + F +D + G + E + H
D. J
E. E+H+J
Score: 0/1
46.
good or service

price.
always be negative.
Score: 1/1
47.

1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13

A. 4
B. 5
6 100%
C.
D. 8
Score: 1/1
48.
1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13

A. Q = 4, P = $27
B. Q = 4, P = $25
Q = 5, P = $23 100%
C.
D. Q = 7, P = $17
Score: 1/1
49.

1 $4
2 6
3 8
4 10
5 12

A. 2
B. 3
4 100%
C.
D. 5
Score: 1/1
50.

1 $4
2 6
3 8
4 10
5 12

A. 2
B. 6
C. 8
10 0%
D.
Score: 0/1
A. Keynesians
D. All of the above
Score: 1/1
An open economy's GDP is given by
A. Y = C + I + G.
B. Y = C + I + G + T.
C. Y = C + I + G + S.
D. Y = C + I + G + NX.
Score: 1/1
Belief in the basic instability of the free market, and faith in the ability of government to improve
on free market outcomes, is associated with which of the following categories of economists?

A.
D. All of the above
Score: 1/1
increase in labor.
increase in labor.
C. increase in capital necessary

to keep labor employed
D. increase in output obtained

from a one unit increase in
labor.
Score: 1/1
三
The average amount of goods and services produced from each hour of a worker's
time is called
A. per capita GDP
B. per capita GNP
C. productivity
D. human capital
Score: 1/1
productivity
B. an increase in
productivity
Score: 1/1
An increase in the amount of human capital per worker will most likely result in
A. a decrease in
productivity
B. an increase in 100%
productivity
Score: 1/1
Figure 1
(i) Total output increases as the quantity of inputs increases, but at a fluctuating rate.
A. (i) only
B. (ii) and (iii)
C. (i) and (iii)
Score: 1/1
Figure 1
错 Consider Figure 1 above. Which of the following is true of the production function
(i) Total output increases as the quantity of inputs increases, but at a decreasing rate.
(iii) The slope of the production function fluctuates as the quantity of inputs increases.
A. (i) only
B. (ii) and (iii)
C. (i) and (ii)
Score: 0/1
Figure 1
错 Consider Figure 1 above. Which of the following is true of the production function (not

A. (i) only
(ii) and (iii) 0%
B.
C. (i) and (iii)
Score: 0/1
When the consumer price index rises, the typical family

living.

living.
C. finds that its standard of living is

not affected.
D. can offset the effects of rising

prices by saving more.
Score: 1/1

of living.
can spend fewer dollars to 100%
B. maintain the same standard
of living.
D. can offset the effects of rising
prices by saving more.
Score: 1/1
What is the relationship between consumer price index and spending of typical family
in order to maintain the same standard of living?
A. When the consumer price 100%

index decreases, the
typical family can spend
less
B. When the consumer price

index rises, the typical
family can spend less
C. When the consumer price

index decreases, the
typical family has to
spend more
D. The fluctuation of
consumer price index is
nothing to do with
spending of family
Score: 1/1
A. all goods and services produced

in the economy
B. all goods and services that typical

consumers buy

consumption component of the
GDP accounts

services, in the consumption
component of the GDP accounts
Score: 1/1
Year Peaches Pecans

A. 20 percent
B. 16.7 percent
C. 10 percent
D. 5 percent
Score: 1/1
Year Peaches Pecans


A. 20 percent
B. 16.7 percent
10 percent 100%
C.
D. 8 percent
Score: 1/1
Year Peaches Pecans

A. 20 percent
B. 16.7 percent
C. 10 percent
D. 8 percent
Score: 1/1
If U.S. citizens decide to save a larger fraction of their incomes, the real interest rate

of the dollar depreciates, and
U.S. net capital outflow
increases.

of the dollar appreciates, and
decreases.
C. increases, the real exchange rate

decreases.
D. increases, the real exchange rate

increases.
Score: 1/1
If U.S. citizens decide to save a larger fraction of their incomes, other things contstant, the real
interest rate

will fall 100%
A.
B. will rise.
Score: 1/1
If U.S. citizens entrepreneurs increase their demand for loanable funds, other things contstant, the
real interest rate

A. will fall
will rise. 100%
B.
Score: 1/1
错 If U.S. citizens decide to save a smaller fraction of their incomes, the real interest
rate

increases.
decreases.
C. increases, the real exchange rate

decreases.
D. increases, the real exchange rate

increases.
Score: 0/1
A. falling
B. rising
C. negative
D. flat
Score: 1/1
错 Consider a production function in two factors Q = f(K,L) that is CRS. When the MPK
is rising the MPL is
A. falling
B. rising
C. negative
D. flat
Score: 0/1
In what circumstance that the production function would shift vertically upward?
A. An improvement in technology
B. Labor cost increases
C. Labor cost decreases
D. It is impossible that the

production function would shift
Score: 1/1
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed factor. How
would the production function be an increase in the amount of K to a new fixed level?

would be unaffected
downward
C. would shift vertically upward
would disappear
Score: 1/1
Consider a production function in two factors Q = f(K,L) that is CRS, K is a fixed factor. How
would the production function be affected by an improvement in technology?

would be unaffected
B. would shift vertically upward
downward
would disappear
Score: 1/1
十一
Assume a production function that has increasing returns to scale. A doubling of all
A. doubling
D. zero increase
Score: 1/1
Assume a production function that has constant returns to scale. A doubling of all the inputs will
lead to a ____________ of the output

doubling 100%
A.
D. zero increase
Score: 1/1
Assume a production function that has decreasing returns to scale. A doubling of all
A. doubling
C. less than doubling 100%
D. zero increase
Score: 1/1
十二
A. an increase in the nominal rate of

interest
B. a decrease in the nominal rate of

interest
C. a increase in the difference

between the nominal and the real
rates of interest
Score: 1/1

A. an increase in the 100%

C. a decrease in the
rates of interest
Score: 1/1

rate of interest
B. a decrease in the nominal rate
of interest
between the nominal and the
real rates of interest
E.
Score: 1/1
十三
When net capital inflow is negative, net exports must be
A. positive
B. negative
C. zero
Score: 1/1
When the Chinese government decreases its demand for US Treasury bonds, the dollar price of
imported Chinese manufactured goods will

A. rise
fall 100%
B.
C. be unaffected
Score: 1/1
When the US government decreases the interest rate on US Treasury bonds, the dollar
price of imported Chinese manufactured goods can be expected to
A. rise
B. fall 100%
C. be unaffected
Score: 1/1
十四
Which of the following would do the most to reduce a trade deficit?

A. increasing domestic saving
B. increasing political stability and

respect for property rights
C. negotiating with other countries

to get them to reduce their trade
restrictions
D. imposing higher tariffs on

imported goods
Score: 1/1
An increase in the Demand for and the supply of loanable funds will cause the interest rate to

A. rise
B. fall
C. remain the same
it is impossble to say 100%
D.
Score: 1/1
十五

A. an increase in the propensity
of people to save by
purchasing US savings bonds
the sale by the Federal 100%
B. Reserve System of existing
US bonds
Score: 1/1

A. an increase in the propensity
of people to save by
purchasing US savings bonds
the spending by the Treasury 100%
B. of the proceeds of the sale of
new US Treasury bonds to
the Federal Reserve System
Score: 1/1
Which of the following will increase U.S. net capital inflow?
A. capital flight from the United

States
B. the government budget deficit

increases (and domestic
borrowing is maxed out)
C. the U.S. imposes import quotas
Score: 1/1
十六
A. CPI always correctly reflects the

cost of living
B. CPI may overstate the cost of

living by not taking into account
the possibility of consumer
substitution
C. CPI may understate the cost of

living by not taking into account
the possibility of consumer
substitution
Score: 1/1
十七
A. the CPI
B. the PPI
C. the GDP deflator.
D. the ESP
Score: 1/1
十八
Choose the correct statement below New products are invented every year.
Consequently real GDP growth
A. probably underestimates the rate

of real economic growth.
B. probably overestimates the rate

of real economic growth.
C. real GDP growth is rarely used

Score: 1/1
十九
B. human capital.
D. technology.
Score: 1/1
The equipment and structures available to produce goods and services are called

physical capital. 100%
A.
B. human capital.
D. technology.
Score: 1/1
Inputs used in production that are provided by nature, such as land, rivers, and mineral deposits
are called

B. human capital.
D.
Score: 1/1
二十
A. knowledge acquired from early

childhood education programs
B. knowledge acquired from grade

school
C. knowledge acquired from on-the-

job training
D. All of the above are correct.
Score: 1/1

C. knowledge acquired from 100% 注意和前一题

on-the-job training
accountant's office
Score: 1/1

Tools used to build furniture 100%
A.
deposits
C. knowledge acquired from on-
the-job training
D. All of the above are correct
Score: 1/1
二十一
B. positively related.
C. negatively related for developing

countries, but positively related
for industrial countries.
D. not related
Score: 1/1
二十二
International trade
A. lowers the standard of living in all

trading countries.
B. raises the standard of living in all

trading countries.
C. raises the standard of living for

exporting countries and lowers it
for importing countries
D. raises the standard of living for

importing countries and lowers it
Score: 1/1
二十三
A. the demand for loanable funds

will fall
B. the supply of loanable funds will

fall
D. all of the above
Score: 1/1
二十四
A. money was invented in the 12th

century BC by Sir John Money
B. money is the result of complex 注意下

social evolution 两题
C. money's origins are to be found

the government safeguards of
legal tender
Score: 1/1

13th century BC by Sir John
Money
b and c of the above 100% 注意上下题
D.
Score: 1/1
A. money is the result of 0%

B. Money facilitates
production
C. Money facilitates
exchange
D. all of the above 应该是 D
Score: 0/1
二十五
B. Bank One
E. all of the above are financial

intermediaries
Score: 1/1
二十六
Which of the following equations is correct?
A. S = I + C
B. S = I - NX
C. S = I + NCO
D. S = NX - NCO.
Score: 1/1
According to whom is inflation always and everywhere a monetary phenomenon?

A. the Keynesians
B. the Quakers
the Monetarists 100%
C.
Score: 1/1
budget?
A. the Keynesians 100%
B. the Quakers
C. the Monetarists
Score: 1/1
二十七

government
B. a bond issued by General Motors
C. a bond issued by New York State
D. a bond issued by a new

restaurant chain
Score: 1/1

government
State
a bond issued by a new food 100%
D. company
Score: 1/1
二十八
Which of the following stakeholders is most concerned that the company earn enough
profit to pay its loans? (hint: consider the incentives faced by each).
B. share holders
C. debt holders
D. workers
Score: 1/1
二十九
The price elasticity of demand for a good is -0.50. By how much must the price of the
good decrease in order for sales to rise by 6%?
A. 3%.
B. 12%.
C. 20%.
D. 24%.
Score: 1/1

A. 3%.
B. 4.8%.
C. 12.4%.
24%. 100%
D.
Score: 1/1
三十
A. 2.
B. 1.
C. 0.3.
D. 0.05.
Score: 1/1

A. 2.
1. 100%
B.
C. 0.3.
D. 0.05.
Score: 1/1
错 Suppose Joe purchases 5 six-packs of beer per month when his monthly income is
A. 2. 可能是 A 需求量变化的百分比除以价格变化的
百分比
B. 1.
C. 0.3.
D. 0.05.
Score: 0/1
三十一
Economics is
A. unscientific

D. the study of the allocation of

scarce means to alternative uses
Score: 1/1
Economics is
A. unscientific

D. the study of the allocation of

scarce means to alternative uses
Score: 1/1
三十二
A. a Benz
B. steak
C. spam
D. gasoline
Score: 1/1
A. a Benz
B. steak
C. gasoline
D. canned food 100%
Score: 1/1
三十三
A. a rising AC curve throughout the

B. a falling AC curve throughout the

C. a constant AC curve throughout

the feasible range of sales
D. a falling MC curve throughout the

Score: 1/1
三十四
demand will be
A. greater than 1
B. equal to 1
C. less than 1
D. equal to zero
Score: 1/1
三十五
Figure 2
A. 100
B. 200
C. 300
D. 400
Score: 1/1
三十六

D. more than 200
Score: 1/1
三十七
C. a change in price of raw material
E. a and c of the above
Score: 1/1
A. an improvement in 100% 注意
technology
income
base
Score: 1/1

A. an improvement in 100%
technology
income
tastes
Score: 1/1
三十八

technology
B. in crease in consumer income
C. a change in consumer tastes
E.
Score: 1/1
A. a change in price of raw

material
B. an improvement in
technology
C. a change in consumer 100% 注意

taste
Score: 1/1
三十九
A. the number of computers bought

and sold
C. both the equilibrium price and

quantity of computers.
D. the shortage of computers in the

market.
Score: 1/1
四十
gasoline sold has also been rising. We can conclude that
A. the law of supply does not hold

for gasoline.
B. the law of demand does not hold

for gasoline.
C. the demand for gasoline must

have risen
D. the supply of gasoline must have

fallen
Score: 1/1
gasoline sold has been falling. We can conclude that



must have fallen

must have fallen
Score: 1/1
Suppose we observe that the price of gasoline has been falling, and the quantity of gasoline sold
has also been rising. We can conclude that

hold for gasoline.
hold for gasoline.
C. the demand for gasoline must
have risen
D. have risen
Score: 1/1
四十一需求除以价格
The price elasticity of demand for a good is -0.40. By how much must the price of the
good decrease in order for the number of units sold to rise by 12%?
A. 3%.
B. 4.8%.
C. 12.4%.
D. 30%
Score: 10/10
四十二
Under which of the following circumstances will the seller pay the whole of a per-unit
tax?
A. when the supply curve is vertical
B. when the demand curve is

vertical
C. when the tax is collected from the

buyer
D. when the tax is imposed on the

buyer
Score: 10/10

A. zero elasticity
B. when the demand curve has a
zero elasticity
from the buyer
the buyer
Score: 1/1
四十三四十四四十五

1
43The following two questions refer to the accompanying diagram.
Refer to the figure above. A per-unit tax is imposed on consumers. The initial price
and quantity are P0
and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms
receive the price Ps, and consumers pay the price PD.
Area B + C is
A. the tax revenue collected by the

government.

D. the deadweight loss due to the

tax.
Score: 10/10
44Refer to the same figure below.
Which areas represent the deadweight loss from the imposition of the per-unit tax?
A. E
B. E + F
C. B + C
D. A + B + E
E. C + F + D
Score: 10/10
45Refer to the similar figure below.
Assuming the imposition of a fully effective price ceiling at P S the quantity produced
will be?
A. Q1
B. Q0
C. between Q1 and Q0
D. less than Q1
E. more than Q0
2
43The following three questions refer to the accompanying diagram.
Figure 3:
Refer to Figure 3 above. A sales tax is imposed on consumers. The initial price and quantity are P0
and Q0, respectively. After the tax is imposed, the equilibrium quantity is Q1, firms receive the price
Ps, and consumers pay the price Pd.

A. the government.
D. the deadweight loss due to the
tax.
Score: 1/1
44Refer to Figure 3 below. Which is the deadweight loss from the imposition of the sales tax?

A. E
E+H 100%
B.
C. H
D. J
E. E+H+J
Score: 1/1
45Forget about the sales tax. Use the same Figure 3 below. The imposition of a fully effective

A. E
B. E+H
C + F +D + G + E + H 100%
C.
D. J
E. E+H+J
Score: 1/1
四十六
When a simple monopolist – no price discrimination – chooses to sell an additional unit of a good
or service
price.
B. marginal revenue will always
be negative.
it will have to lower its price 100%
C. on the additional unit and on
all other units.
Score: 1/1
四十七


1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
A. 4
B. 5
C. 6
D. 8
Score: 10/10
四十八


1 35 35
2 64 32 29
3 29
4 17
5 23 11
6 120
7 17 -1
8 -7
9 99 11 -13
(Q) will it produce and what price (P) will it charge if it wants to maximize its profits?
A. Q = 4, P = $27
B. Q = 4, P = $25
C. Q = 5, P = $23
D. Q = 7, P = $17
Score: 10/10
四十九
1 $4
2 6
3 8
4 10
5 12
How many widgets does a firm produce, assuming it wishes to maximize profits?
A. 2
B. 3
C. 4
D. 5
Score: 10/10
五十
costs of $10 and faces the following marginal cost curve,
1 $4
2 6
3 8
4 10
5 12
How much profit does the firm earn when it maximizes profit?
A. 2
B. 6
C. 8
D. 10
Score: 10/10

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Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

Student Response Value Feedback

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Total Average Marginal

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Quantity Marginal Cost

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Quantity Marginal Cost

How much profit does the firm earn?

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An open economy's GDP is given by

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The marginal product of labor is equal to the

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A. incremental revenue associated

B. incremental profit associated with a

C. increase in capital necessary to

D. increase in output obtained from a

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A. per capita GDP

B. per capita GNP

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B. (ii) and (iii)

C. (i) and (iii)

D. all of the above are correct.