The table above gives some of the entries in the national income and product accounts. What is the value of exports?
A) 350 billion
B) 300 billion
C) -25 billion
D) 25 billion
Ques. 2Which of the following leads to the suppliers paying all of a tax?
A) The supply is perfectly elastic.
B) The supply is perfectly inelastic.
C) The demand is unit elastic.
D) The demand is perfectly inelastic.
Ques. 3An advantage of a partnership over a corporation is that
A) a partnership's profits are taxed only once, while retained profits of a corporation are taxed twice.
B) a partnership's owners usually have limited liability, while the entire wealth of owners of a corporation is at risk.
C) a partnership has a perpetual life, while a corporation dies with its owners.
D) a partnership's cost of capital is low relative to that of a corporation.
Ques. 4The figure above shows a monopoly firm's demand curve. At point t
A) demand is elastic.
B) demand is unit elastic.
C) demand is inelastic.
D) total revenue is at a minimum.
Ques. 5Which of the following statements CORRECTLY describes the policy stance of a macroeconomist?
A) A monetarist believes that the quantity of money should be constantly changed in order to offset changes in aggregate demand.
B) A new classical macroeconomist believes that fiscal and monetary policy are required to maintain full employment.
C) A Keynesian believes that if taxes are always kept low and the quantity of money is kept on a steady growth path, no policy actions will be needed to maintain full employment.
D) A classical macroeconomist believes that maintaining consistently low taxes will allow the economy to expand at an appropriate and rapid pace.
Ques. 6Product differentiation is a defining characteristic of
A) perfectly elastic demand.
B) oligopoly.
C) perfect competition.
D) monopolistic competition.
Ques. 7Fred spends all of his income on two goods: DVDs and downloaded music. If Fred's marginal utility per dollar from DVDs is greater than his marginal utility per dollar from downloaded music, Fred can ________ his total utility by buying ________.
A) maximize; more DVDs and more downloaded music
B) increase; more downloaded music and fewer DVDs
C) increase; more DVDs and less downloaded music
D) maximize; fewer DVDs and less downloaded music
Ques. 8The figure above shows the market for coffee. If more coffee plantations are planted in Brazil and Vietnam so that the supply of coffee increases, the efficient quantity of coffee will ________ and the consumer surplus will ________.
A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase
Ques. 9Which of the following is the BEST example of a private good?
A) a can of Mountain Dew
B) fish in the ocean
C) cable television
D) national defense
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