Question # 1

To be productively efficient a firm must produce where

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Marginal costs are maximized

Marginal costs are minimized

Average costs are minimized

Average revenue is maximized

The yield curve shows

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The yields on stocks of different maturities

The interest rates on bonds of different maturities.

The yields on stocks with differing default risk

The yields on bonds with differing default risk

In the neighborhood of the long run equilibrium of a monopolistically competitive firm average cost will be.

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Decreasing

Constant

Increasing

At a minimum

The extra utility from consuming one more unit of a good is called.

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Marginal utility

Additional utility

surplus utility

Bonus utility

If a monopolist's demand curve is downward sloping and linear, then its total revenue curve must be.

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Identical to the demand curve

A ray from the origin with a slope equal to price

negative sloped with twice the slope of the demand curve

A rising function of output that increases at a decreasing rate , reaches a maximum, then falls.

"More reliable results can be obtained through sampling method" because.

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Statistical error is low

Saves time

Cost is low

None of the above

Industries that are extremely sensitive to the business cycle are the.

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Durable goods and service sectors

Nondurable goods and service sectors.

Capital goods and nondurable goods sectors.

Capital goods and durable goods sectors.

To move from point E to point E1 is consistent with.

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Expectations of a constant price level

Adaptive expectations that have no adjustment for the period immediately following a change in the actual price

Rational expectations and NCM

A and B

Commercial banks

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Are financial intermediaries that offer demand deposits.

Are owned by the Federal Reserve

Are non profit banking institutions

Are overseen by the Federal savings and loan insurance corporation.

The asset market approach a more helpful in explaning.

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why excahnge rates remain quite stable

Why governments change their money supplies.

Long term exchange rate movement.

Short term exchange rate movement.

The values are represented by identical symbol or picture's

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Bar charts

Pictograms

Circle charts

graphs

The aggregate supply of labor is the

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Total amount of time a person works over his or her lifetime

Total amount of time a person spend in the labor force over his or her life time

Unemployment rate

Sum of the labor supplied by everyone in the economy

The accelerator theory of investment says that induced investments determined by.

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The rate of change of national income

Expectations

The level of national income

The level of aggregate demand

What is the process of summarizing raw data and displaying them on compact statistical tables for further analysis.

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Statistical analysis

Data processing

Tabulation

Table construction

In pure competition.

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Strong rivaled exist

Cartels are formed

Both a and b

None of thes

The substitution effect of a decrease in real interest rates is to cause a consumer to.

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Increase future consumption and decrease current consumption

Decrease future consumption and increase current consumption

Increase current consumption and increase saving

Decrease current consumption and increase saving.

In order to maximize profits a monopoly company will produce that quantity at which the

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A marginal revenue equals average total cost

Price equals marginal revenue

Marginal revue equals marginal cost

Total revenue equals total cost

All of the following are types of imperfect competition except

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Monopolistic competition

Oligopoly

Monopoly

Unfair competition

To maximize revenue, an excise tax should be imposed on a product

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That has a highly elastic demand curve

Such as St. Joseph's children's' aspirin.

Such as salt

such as Toyota automobiles

Which of the following is incorrect with respect to the consumption diagram.

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the interest rate is a premium

MRS = (i +r)

The consumer will be lender in time zero

The consumer lends 700

Real GNP measures income

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Including non market activities

Adjusted for inflation

Including externalities

Including tax evasion

The imposition of a tariff causes consumption to _______ and imports to.

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rise , rise

fall , rise

fall , fall

rise , fall

Per Capita income is obtained by dividing National income by

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Total labor Force in the country

Unemployed Youth in the country

Total population of that country

None

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

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Low ; smaller ; high

Low ; larger ; high

low ; smaller ; middle

High ; larger ; low

Compared to the case of perfect competition.

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Monopolist is more likely to

Charge a higher price

Produce a lower quantity of the product

All of the above

Lower interest rates are likely to.

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Decrease consumption

Increase cost of borrowing

Encourage saving

Increase spending

Case study may be a source of hypothesis of.

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Future research

Research design

Content analysis

Intensive study

The demand for labor slopes down and to the right because of.

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The law of demand

The iron law of wages

The law of diminishing marginal returns

Economies of scale

Defined as a tentative or working proposition suggested as a solution to a problem.

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Research

Objective

Hypothesis

Concepts

The fundamental economics problem faced by all societies is

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Un employment

In equality

Poverty

Scarcity

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

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