Question 1) Which of the following issues is an application of usi

03 Jun Question 1) Which of the following issues is an application of usi

Question
1) Which of the following issues is an application of using macroeconomics to make a real world decision?

A. Whether a company should increase its worker benefits

B. Whether this year’s enrollment will increase for University of Phoenix.

C. Whether the growth rate of the Chinese economy will exceed 10% in 2010

D. Whether workers should choose to remain in a factory

2) The forces that make market economies work are

A. work and leisure

B. demand and supply

C. regulation and restraint

D. taxes and government spending

3) A market is a

A. group of buyers and sellers of a particular good or service

B. group of people with common economic characteristics

C. place where buyers and sellers come together to engage in trade

D. place where an auctioneer helps set prices and arrange sales

4) If a decrease in income increases the demand for a good, then the good is

A. a substitute good

B. a complement good

C. a normal good

D. an inferior good

5) Two goods are substitutes if a decrease in the price of one good

A. decreases the demand for the other good

B. decreases the quantity demanded of the other good

C. increases the demand for the other good

D. increases the quantity demanded of the other good

6) A likely example of substitute goods for most people would be

A. peanut butter and jelly

B. tennis balls and tennis rackets

C. televisions and subscriptions to cable television services

D. pencils and pens

7) Another term for equilibrium price is

A. dynamic price

B. market-clearing price

C. quantity-defining price

D. satisfactory price

8) If, at the current price, there is a shortage of a good,

A. sellers are producing more than buyers wish to buy

B. the market must be in equilibrium

C. the price is below the equilibrium price

D. quantity demanded equals quantity supplied

9) If there is suddenly an increase in population in North Carolina, then the average wage for North Carolina will

A. decrease because the supply of labor increases

B. increase because the supply of labor increases

C. decrease because the demand of labor increases

D. increase because the demand of labor increases

10) The marginal product of labor is equal to the

A. incremental cost associated with a one unit increase in labor

B. incremental profit associated with a one unit increase in labor

C. increase in labor necessary to generate a one unit increase in output

D. increase in output obtained from a one unit increase in labor

11) When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm’s objective is to

A. minimize wages