Refer to the above figure. Which panel is consistent with the Fed buying bonds?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
Ques. 2A key idea of the new growth theory is that
A) technology is not an important determinant of economic growth.
B) economic growth is not as important as leisure time growth.
C) the greater the rewards for technological advances, the greater the number of technological advances.
D) the rewards associated with technological advances have little to do with the actual rate of invention or innovation.
Ques. 3If the economy is operating at a point at which short-run aggregate supply is horizontal, then
A) real GDP cannot expand.
B) real GDP cannot contract.
C) increases in aggregate demand do not increase the price level.
D) then increases in aggregate demand do not increase real GDP.
Ques. 4All of the following are characteristics of a monopolistically competitive industry EXCEPT
A) homogeneous products.
B) many firms.
C) low barriers to entry and exit.
D) sales promotion and advertising.
Ques. 5If an industry has 25 firms that collectively have 150 million in total sales and the top four firms in this industry account for 90 million in sales, what is the concentration ratio of the top four firms in this industry?
A) 42 percent
B) 60 percent
C) 70 percent
D) 80 percent
Ques. 6If an economy produces only steel and wheat, a new fertilizer will
A) cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only.
B) cause the production of both wheat and steel to increase at every point along the production possibilities curve, that is the curve moves outward on both the wheat axis and the steel axis.
C) not affect the production of either wheat or steel.
D) cause the production of steel to increase at every point along the production possibilities curve but not affect the production of wheat, that is the curve moves outward on the steel axis only.
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