An economist who is studying the relationship between the moneysupply, 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 thesevariables
D. empirical research, because there is no economic theory relatedto these variables
2) A basic difference between microeconomics and macroeconomics isthat microeconomics
A. focuses on the choices of individual consumers, whilemacroeconomics considers the behavior of large businesses
B. focuses on financial reporting by individuals, whilemacroeconomics focuses on financial reporting by large firms
C. examines the choices made by individual participants in aneconomy, while macroeconomics considers the economy’s overallperformance
D. focuses on national markets, while macroeconomics concentrateson international markets
3) The distinction between supply and the quantity supplied is bestmade by saying that
A. the quantity supplied is represented graphically by a curve andsupply as a point on that curve associated with a particularprice
B. supply is represented graphically by a curve and the quantitysupplied as a point on that curve associated with a particularprice
C. the quantity supplied is in direct relation with prices, whereassupply is in inverse relation
D. the quantity supplied is in inverse relation with prices,whereas supply is in direct relation
4) After several years of slow economic growth, world demand forpetroleum began to rise rapidly in the 1990s. Much of the increasein demand was met by additional supplies from sources outside theOrganization of Petroleum Exporting Countries (OPEC). OPEC, duringthis time, was unable to restrain output among members in itseffort to lift oil prices. What best describes these events?
A. The rise in demand shifted the demand for oil to the right. OPECactions shifted the demand for oil back to the left.
B. The rise in demand shifted the demand for oil to the right. Asprice rose, the supply of oil also rose.
C. The rise in demand shifted the demand for oil to the right. Asprice rose, the quantity of oil supplied rose.
D. The rise in demand reflects a movement down along the demandcurve as supply shifted to the right when suppliers produced moreoil.
5) Price elasticity of demand is the:
A. change in the quantity of a good demanded divided by the changein the price of that good
B. change in the price of a good divided by the change in thequantity of that good demanded
C. percentage change in price of that good divided by thepercentage change in the quantity of that good demanded
D. percentage change in quantity demanded of a good divided by thepercentage change in the price of that good
6) If average movie ticket prices rise by about 5 percent andattendance falls by about 2 percent, other things being equal, theelasticity of demand for movie tickets is about:
A. 0.0
B. 0.4
C. 0.6
D. 2.5
7) When labor is the variable input, the average product equalsthe
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
8) The increase in output obtained by hiring an additional workeris known as
A. the average product
B. the marginal product
C. the total product
D. value added
9) Which of the following is the best example of a long-rundecision?
A. An automobile manufacturing company is considering whether ornot to invest in robotic equipment to develop a more cost-effectiveproduction technique.
B. An automobile manufacturing company is considering whether ornot to expand its existing workforce, while keeping the samefactory and equipment.
C. A business consulting firm is considering whether or not to hireinterns to assist with research and data processing.
D. A business consulting firm is considering whether or not to addnew computers while maintaining the same number of employees.
10) Other things being equal, when average productivity falls,
A. average fixed cost must rise
B. marginal cost must rise
C. average total cost must rise
D. average variable cost must rise
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
