5 Written questions
5 Matching questions
- One HEADLINE article in the text has the title "Fed cuts key interest rate half-point to 1 percent." Assuming the economy is in the upward sloping portion of the eclectic aggregate supply curve, what should happen to the price level and output as a result of the Fed's action, ceteris paribus?
- Which of the following is an example of labor as a factor of production?
- Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:
- The demand for such items as salt, sugar and hand soap tend to be:
- Which of the following events would cause a rightward shift in the supply curve for automobiles?
- a Relatively inelastic
- b An improvement in the technology used to produce automobiles.
- c Barriers to entry.
- d The equilibrium price level and equilibrium output should both increase.
- e The skills and abilities of workers.
5 Multiple choice questions
- The money supply becomes smaller.
- How best to allocate scarce resources.
- The limited resources that individuals have.
- Charges a higher price than a competitive firm, ceteris paribus.
- A recession.
5 True/False questions
The market supply of a particular good: → The market price is below equilibrium
For a monopolist, marginal revenue is: → Always less than price, after the first unit.
When income decreases, the demand for most products: → Maximize total profit.
The chairman of the Federal Reserve Board of Governors: → Is the sum of the quantities of the good that all producers are willing and able to sell.
TRUE/FALSE: The goal of economic theory is to explain and predict consumption choices. → True