Survey results appeared in the December 1998 Region magazine, a special issue devoted to an analysis of the nation's economic literacy. When deciding which of the two items to purchase, one should always: A. The marginal cost of producing the sixth unit of output is: A. The demand curve shifts left. The law of diminishing returns indicates that: A.
More than one person at a time whether they have paid for it or not. Eight months later there still has been no change in corn prices. Which of the following is a short-run adjustment? C the long run unemployment rate. As inflation rate increases sharply, the price level also increases sharply, causing the real value of money that the holders have to decrease. There's no signup, and no start or end dates. The total variable cost of producing 5 units is: A.
If the Fed reduces the reserve requirement the supply of money will increase. The existence of this institution: A. Diminishing marginal returns become evident with the addition of the: A. If the price of beef doubled and the price of poultry stayed the same, people would most likely buy: A. Money holds its value well in times of inflation. .
Should a firm attempt to conceal evidence of the harmful effects of its products on the health of consumers? Only the people who pay for these products and services. Nominal variables that are measured in units of money monetary units 2. Try it right now and release yourself from the scarcity of information! This results in a decrease in equilibrium price and an increase in quantity. B long- term trends in the price level. A an expansion; a recession B a depression; an expansion C a trough; a peak D a recession; an expansion Answer: A 17 In a business cycle, a peak represents the end of A an expansion.
Automobile manufacturers in the United States D. Answer the following three questions dealing with monetary policy. Mexico benefits and Argentina loses from the trade. Maximize expected total corporate profit. Answer: C 6 The demand for massage therapists declined in the spring of 2007, but the starting wages paid to massage therapists was still the same at the end of 2007.
D none of the above. Content Review Please review the content from the units covered before attempting the exam. Since nearly all components of life somehow relate to the allocation of scarce resources, almost every interaction and event that occurs impacts the economy. In the above diagram curves 1, 2, and 3 represent the: A. For example, if the bank posts a nominal interest rate of 7%, and the inflation rate is 3%, the real value of the deposits grows by 4% per year. People who borrowed money at a fixed rate of interest. A the functioning of individual industries B aggregate behavior of households and industries C the behavior of individual households D the decision- making behavior of individual business firms Answer: B 4 Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are A administered prices.
Test your financial smarts with their interactive quizzes. D increase in the overall level of economic activity. Why do we have unemployment and why is it a hindrance to the economy? This is an example of a A sticky price. If the United States stopped importing automobiles from Country X, who would be most likely to benefit? Answer the following background questions so you can compare your test result with others. This is a closed book exam. The short run is characterized by: A. Economy News Economics News is updated as relevant news stories is made public.
Refer to the above data. D the unemployment rate declines. The average total cost of producing 3 units of output is: A. Six new firms enter the plastics industry. Choose an item after comparing the costs and benefits of both items. E units at price A.
Get help with your economics homework! Should a firm use a production method in foreign countries that is banned in its home country? Real variables that are measure in units of goods physical units. Refer to the above data. Increasing government regulation of the computer industry. X Exclude words from your search Put - in front of a word you want to leave out. Thirdly, the interest rate would not change. Answer: A 13 The term business cycle refers to the A short- term ups and downs in the price level.
Why do we have inflation and why is it a problem? Belize is small in size, prone to natural disasters and environmental fragility. Search within a range of numbers Put. Answer: A 11 A period of very rapid increase in the overall price level is known as A stagnation. In the long run: A. Interest from stocks and bonds they own. The total variable cost of producing 5 units is 11.