Questions:
1) An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in
A. microeconomic research
B. macroeconomic research
C. theoretical research, because there is no data on these variables
D. empirical research, because there is no economic theory related to these variables
2) A basic difference between microeconomics and macroeconomics is that microeconomics
A. focuses on the choices of individual consumers, while macroeconomics considers the behavior of large businesses
B. focuses on financial reporting by individuals, while macroeconomics focuses on financial reporting by large firms
C. examines the choices made by individual participants in an economy, while macroeconomics considers the economy's overall performance
D. focuses on national markets, while macroeconomics concentrates on international markets
3) The distinction between supply and the quantity supplied is best made by saying that
A. the quantity supplied is represented graphically by a curve and supply as a point on that curve associated with a particular price
B. supply is represented graphically by a curve and the quantity supplied as a point on that curve associated with a particular price
C. the quantity supplied is in direct relation with prices, whereas supply is in inverse relation
D. the quantity supplied is in inverse relation with prices, whereas supply is in direct relation
4) When labor is the variable input, the average product equals the
A. marginal product divided by the number of workers
B. marginal product multiplied by the number of workers
C. number of workers divided by the quantity of output
D. quantity of output divided by the number of workers
5) The increase in output obtained by hiring an additional worker is known as
A. the average product
B. the marginal product
C. the total product
D. value added
6) Which of the following is the best example of a long-run decision?
7) Other things being equal, when average productivity falls,
8. According to economist Colin Camerer of the California Institute of Technology, many New York taxi drivers decide when to finish work by setting an income goal for themselves. If this is true, then on busy days when the effective hourly wage is higher, taxi drivers will
9) A firm's demand for labor is derived from the
10) Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so all three vans are in constant use, allowing him to increase deliveries per day from 60 to 75. This will cost an additional $75 per day to hire the fourth driver. The marginal cost per delivery of increasing output beyond 60 deliveries per day
11) Expected economic profit per unit is equal to
12) If a firm in a perfectly competitive market experiences a technological breakthrough,
13) A significant difference between monopoly and perfect competition is that
14) A monopoly firm is different from a competitive firm in that
15) The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a
16) As long as marginal cost is below marginal revenue, a perfectly competitive firm should
17) Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal
18) The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is
19) Countries can expect to gain from international trade as long as they
20) Which of the following is an example of the law of one price?
21) The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to
A. an increase in the demand for CEOs
B. an increase in the supply of CEOs
C. the comparatively greater competitive markets in Japan
D. the greater number of public goods provided in the United States