Which of the following causes a movement along a supply curve?
A) a change in resource costs
B) a change in technology
C) a change in the price
D) all of the above
Ques. 2Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds
B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it
C) because no one really benefits from public goods
D) because private sector firms do not have the foresight to plan for public goods
Ques. 3Monopolistic competition means
A) monopolies from several countries compete in the global market.
B) a large number of firms producing homogeneous products.
C) a large number of firms producing differentiated products.
D) few firms producing differentiated products.
Ques. 4The production possibilities curve shifts outward when
A) the law of increasing additional cost takes hold.
B) the economy is producing efficiently.
C) we produce more consumption goods over productive investment in equipment.
D) there is an increase in resources or technology.
Ques. 5A price floor represents
A) a maximum price that can be legally charged for a product or service.
B) a minimum price that can be legally charged for a good or service.
C) a lottery imposed upon producers by the government.
D) a first come, first served mechanism for controlling prices.
Ques. 6Based on the table below, the four-firm concentration ratio equals what percentage of annual sales?
A) 33 percent
B) 40 percent
C) 60 percent
D) 100 percent
Ques. 7A sale of bonds by the Fed generates
A) an increase in the demand for money balances.
B) a decrease in the demand for money balances.
C) an increase in the demand for bonds and a rise in bond prices.
D) an increase in the supply of bonds and a fall in bond prices.
Ques. 8In the Keynesian model in which the Keynesian short-run aggregate supply curve exists
A) the short-run aggregate supply curve determines real GDP.
B) the aggregate demand curve determines the price level.
C) unemployment cannot persist for long periods of time.
D) aggregate demand determines real GDP per year.
Ques. 9The unemployment rate reported by the Bureau of Labor Statistics includes all of the following type of unemployment with the exception of
A) frictional unemployment.
B) structural unemployment.
C) hidden unemployment.
D) cyclical unemployment.
Quick Reply
