ECO365 Final Exams

ECO365 Final Exams
1) An economist who is studying the relationship
between the money supply, interest rates, and the rate of inflation is engaged
in2) A basic difference between microeconomics and
macroeconomics is that microeconomics
3) The distinction between supply and the quantity
supplied is best made by saying that
4) After several years of slow economic growth, world
demand for petroleum began to rise rapidly in the 1990s. Much of the increase
in demand was met by additional supplies from sources outside the Organization
of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to
restrain output among members in its effort to lift oil prices. What best
describes these events?
5) Price elasticity of demand is the6) If average movie ticket prices rise by about 5
percent and attendance falls by about 2 percent, other things being equal, the
elasticity of demand for movie tickets is about:
7) When labor is the variable input, the average
product equals the
8) The increase in output obtained by hiring an
additional worker is known as
9) Which of the following is the best example of a
long-run decision?
10) Other things being equal, when average
productivity falls,
11) 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
12) A firm’s demand for labor is derived from the
13) 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.
14) Expected economic profit per unit is equal to
15) If a firm in a perfectly competitive market
experiences a technological breakthrough,
16) A significant difference between monopoly and
perfect competition is that
17) A monopoly firm is different from a competitive
firm in that
18) The difference between a perfectly competitive
firm and a monopolistically competitive firm is that a monopolistically
competitive firm faces a
19) As long as marginal cost is below marginal
revenue, a perfectly competitive firm should
20) Because a monopolistic competitor has some
monopoly power, advertising to increase that monopoly power makes sense as long
as the marginal21) In the Flint Hills area of Kansas, proposals to
build wind turbines to generate electricity have pitted environmentalist
against environmentalist. Members of the Kansas Sierra Club support the
turbines as a way to reduce fossil fuel usage, while local chapters of the
Nature Conservancy say they will befoul the landscape. The Sierra Club argues
that wind turbines
22) When negative externalities are present, market
failure often occurs because
23) A merger between a textile mill and a clothing
manufacturing company would be considered a
24) A merger between a baby food company and a life
insurance company would be considered a
25) From the point of view of consumer and producer
surplus, what problem may be created when a country subsidizes the cost of
energy to consumers to help alleviate the burden of higher energy costs?
26) Suppose people freely choose to spend 40 percent
of their income on health care, but the government decides to tax 40 percent of
a person’s income to provide the same level of coverage as before. What can be
said about deadweight loss in each case?
27) 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
28) Countries can expect to gain from international
trade as long as the
29) Which of the following is an example of the law
of one price?
30) The fact those U.S. managers’ salaries are
substantially greater than those of comparable managers in Japan may be related
to