Macroeconomic equilibrium occurs when a. aggregate supply exceeds aggregate demand. b. the economy is at full employment. c. aggregate demand equals aggregate supply. d. aggregate demand equals the average price level.

Which of the following correctly describes the aggregate supply curve? a. A curve that shows the level of real GDP demanded at different possible price levels. b. A curve that shows the level of real GDP produced at different possible price levels. c. A curve that shows the level of quantity sup-plied by firms in a market at different possible prices, such as the supply […]

The Footie Fanatic (FF) always eats his stadium hotdog in a special way; he uses a foot-long hot dog (h) together with precisely half a roll (r), 1 gram of mustard (m), and 2 grams of cheese (c). His utility is a function only of these four items, and any extra amount of a single item without the other items is worthless. a. What is […]

An increase in the price level caused by a right-ward shift of the aggregate demand curve is called a. cost-push inflation. b. supply shock inflation. c. demand shock inflation. d. demand-pull inflation.

Suppose a car wash has 2 washing stations and 5 workers and is able to wash 100 cars per day. When it adds a third station, but no more workers, it is able to wash 150 cars per day. The marginal product of the third washing station is a. 100 cars per day. b. 150 cars per day. c. 5 cars per day. d. 50 […]

In Exhibit 7, which of the following points on the production possibilities curve are full-employment production points? a. A, B, C, D b. A, B, C, D, U c. E, U, W d. B, C, D, U e. A, B, C, U

An extreme case in which the demand curve is vertical and the elasticity coefficient equals zero is called _____________. T F Suppose an economist found that total revenues increased for the bus system when fares were raised. The conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic.

Prior to deregulation, critics argued that airline safety would suffer. Instead, although the Federal Aviation Administration’s budget was cut following deregulation, the accident rate involving fatalities has fallen. Give a rationale for why the critics’ prediction did not come to pass.

Suppose that a consumer’s utility function for goods x, y and z is expressed according to the Cobb–Douglas utility function Prices are given by Consumer income is given by I= 8. a. Determine the utility maximising quantity of good z consumed. b. Explain why this quantity of good z is optimal? c. Determine the minimum income required for the consumer to purchase product z.

What is the difference between the marginal tax rate and the average tax rate? Explain why a 5 percent sales tax on gasoline is regressive. Ms. Jones has a taxable income of $30,000, and she must pay $3,000 in taxes. Mr. Smith has a taxable income of $60,000. How much tax must Mr. Smith pay for the tax system to be a. progressive? b. regressive? […]

As shown in Exhibit 11, the $1 per pack sales tax on cigarettes raises tax revenue per day totaling a. $5 million. b. $6 million. c. $10 million. d. $15 million.

Which of the following will not shift the aggregate demand curve to the left? a. Consumers become more optimistic about the future. b. Government spending decreases. c. Business optimism decreases. d. Consumers become pessimistic about the future.

Opportunity cost is the a. purchase price of a good or service. b. value of leisure time plus out-of-pocket costs. c. best option given up as a result of choosing an alternative. d. undesirable sacrifice required to purchase a good.

Explain which of the following is a fixed cost or a variable cost for Toyota a. The cost of aluminum used for its automobiles. b. The property taxes on its Toyota City assembly plant. c. The cost of labor for its assembly line workers. d. The yearly payments for the naming rights for the Toyota Sports Center in El Segundo, California, the United States. e. […]

The M1 definition of the money supply consists of a. coins and currency in circulation. b. coins and currency in circulation, and check-able deposits. c. Federal Reserve notes, gold certificates, and checkable deposits. d. Federal Reserve notes and bank loans.

The pilot light TON timer program of Figure 15-27 is described in the text. Prepare an I/O connection diagram and ladder logic program that will simulate its operation. Utilize field devices found on your ControlLogix installation. Enter the program into the controller, and monitor its operation.

If the demand curve for good X is downward sloping, an increase in the price will result in a. an increase in the demand for good X. b. a decrease in the demand for good X. c. no change in the quantity demanded for good X. d. a larger quantity demanded for good X. e. a smaller quantity demanded for good X.

Assume an economy is in recession and the marginal propensity to consume (MPC) decreases then which of the following is true? a. It takes the same increase in autonomous aggregate expenditures to shift the aggregate expenditure curve upward to the full-employment real GDP level. b. It takes a smaller decrease in autonomous aggregate expenditures to shift the aggregate expenditures curve upward to the full-employment real […]

A controversy in many antitrust court cases involves the definition of the relevant market for a firm’s product. How would you argue in the Alcoa case that the government’s claim of the firm’s high market share was in error?   Q445: In the MIT case, which students are harmed by the Ivy League schools’ coordination of scholarship policy? Professional baseball is exempt from antitrust laws. […]

The classical model of the price level is most applicable in a. the United States. b. periods of high inflation. c. periods of low inflation. d. recessions. e. depressions.