Professional Documents
Culture Documents
a.
The value of total sales, including sales to suppliers and sales to consumers.
b.
c.
d.
e.
b.
c.
d.
For the year 2004, the percentages of C, I, G, and (EX IM) in U.S. aggregate
expenditure were roughly as follows:
a.
b.
c.
d.
Durable goods.
b.
Nondurable goods.
c.
Services.
d.
Residential Investment.
e.
Imports.
a.
b.
c.
The difference between exports and imports is negative when the country is a
net exporter.
d.
Before 1976, the United States was generally a net importer. Only after
1976, exports began to exceed imports.
Which of the following statements is/are correct about the components of GDP using
the income approach?
a.
b.
c.
Net interest refers to interest paid by households, business firms, and the
government.
d.
The difference between gross national product (GNP) and net national product (NNP)
is:
a.
Net exports.
b.
c.
Net interest.
d.
Depreciation.
The difference between nominal GDP and real GDP comes from:
a.
b.
Changes in purchasing power of the dollar caused by changes in the
exchanger rate.
c.
Changes in prices.
d.
Differences in the value of GDP depending on whether the income approach
or the expenditure approach is chosen to compute GDP.
b.
c.
d.
b.
Both macroeconomics and microeconomics are concerned with the
decisions of households and firms.
c.
Microeconomists look for macroeconomic foundations to explain why most
markets arrive at equilibrium.
d.
Aggregate output.
b.
Aggregate employment.
c.
d.
d.
end.
Supply and demand will shift, but equilibrium price remain the same in the
All of the following are debt instruments, or promissory notes issued by a borrower,
except one. Which one?
a.
Treasury bonds.
b.
Treasury notes.
c.
Treasury bills.
d.
Corporate Stocks.
e.
Corporate bonds.
Since 1983, which of the following rates has been low relative to the standards of
the 1970s?
a.
b.
c.
d.
Perfect competition.
b.
Monopolistic competition.
c.
Oligopoly.
d.
Monopoly.
b.
c.
d.
e.
b.
c.
d.
Product differentiation. Try to produce a unique product or establish
a good reputation.
e.
Close substitutes. Try to reproduce the output of other firms as accurately as
possible.
Advertising has its supporters and its critics. The critics of advertising argue that:
a.
Advertising is intended to change peoples preferences and to create wants
that otherwise would not have existed.
b.
The information content of advertising is minimal at best and deliberately
deceptive at worst.
c.
Advertising leads to unproductive warfare, creates a barrier to entry, and by
its very nature, imposes a cost on society.
d.
Refer to the figure below. In order to maximize profit, what price should the firm
charge?
a.
$18
b.
$15
c.
$8
d.
$4
In the long run, a monopolistically competitive firm does not realize all of the
economies of scale available. Which condition below best describes this outcome?
a.
b.
c.
d.
e.
Marginal cost and average cost are equal when average total cost is
minimum.
When is a monopolist able to exercise market power?
a.
b.
c.
d.
Which of the following is among the most important distinctions between perfect
competition and monopoly?
a.
In a monopoly market, there is no distinction between the firm and the
industry.
b.
In a monopoly market, the market demand curve is the demand curve facing
the firm.
c.
In a monopoly market, the total quantity supplied in the market is what the
firm decides to produce.
d.
When total revenue reaches its maximum, what is the value of marginal revenue?
a.
b.
c.
d.
Refer to the figure below. How much profit does the profit-maximizing monopoly
earn?
a.
$0
b.
$6,000
c.
$5,040
d.
$10
e.
$960
Refer to the figure below. How much is consumer surplus in the monopoly
outcome?
a.
Area C
b.
Area R
c.
Area D
d.
Area C + D
e.
Area C + R + D
Which of the following pieces of antitrust legislation banned tying contracts, limited
mergers, and banned price discrimination?
a.
b.
c.
d.
The same legislation that created the Interstate Commerce Commission (ICC).
b.
c.
d.
None of the above. The collusion model yields results is unlike any other
market structure.
The prisoners dilemma yields the following outcome:
a.
Both criminals would be better off confessing, but they choose not to confess.
b.
Both criminals would be better off not confessing, but they choose to
confess.
c.
If both criminals confess, they both get the most lenient sentence possible.
d.
e.
Whether the criminals confess or not, they get the maximum sentence.
Cartels.
b.
Duopolies.
c.
Monopolies.
d.
e.
What is the Herfindahl-Hirschman Index (HHI) for an industry in which five firms
each control 20% of the market?
a.
20
b.
100
c.
2,000
d.
5,000