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• 6. Which of the following is NOT an example of an explicit cost?(A) The overtime wages paid to worke
• 7. Which of the following firms is most likely to be a pure monopolist?(A) A clothing retailer with
• 8. If living standards in a country, as measured by output per person, decrease, then total output m
• 9. If a pizza maker pays $1 for tomatoes, $1 for cheese, $2 for sausage, and sells the pizza made wi
• 10. On January 1, 2015, Anna invested $5,000 at 5% interest for one year. The CPI on January 1, 2015
• 11. Average labor productivity is determined by:(A) consumption, investment, government spending, an
• 12. Which of the following is an example of frictional unemployment?(A) Dora lost her job when the t
• 13. Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and
• 14. If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit rati
• 15. If the principal amount of a bond is $2,000,000, the coupon rate is 6 percent , and the inflatio
• 16. The increase in the unemployment rate during a recession is associated with which type ofunemplo
• 17. If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the m
• 18. The money demand curve will shift to the right if:(A) the nominal interest rate increases.(B) re
• 19. Which of the following will shift the aggregate demand curve to the left?(A) Income taxes are lo
• 20. If the fundamental value of the nominal exchange rate equals 0.20 U.S. dollars per franc, but th
• 2. In competitive markets, firms ________.(A) coordinate pricing decisions with other firms(B) take
• 3. An implication of Walras’ law is that:(A) firms always make positive profits.(B) if there are N m
• 4. A pure public good is:(A) rivalrous and excludable.(B) non-rivalrous and excludable.(C) rivalrous
• 5. Efficiency in consumption under convex and differentiable preferences requires:(A) luck.(B) MRS=M
• 6. In a competitive equilibrium in an exchange economy with two individuals, if one individual is a
• 7. An externality occurs when ________.(A) the quantity demanded of a good exceeds the quantity supp
• 8. Suppose the annual growth rate of an economy is expected to be 3 percent. This implies that theec
• 9. Exponential growth implies that ________.(A) growth rates can only be positive(B) growth rates wi
• 10. A worker is said to be unemployed if he ________.(A) does not have a job and is not actively loo
• 11. Economic growth is said to be persistent, meaning that if the economy is in an expansion this qu