Just solve questions 38-43, thank u!33.Which of the following is a role of the Bank of Canada? Managing the money supplyIncreasing or decreasing government spendingEstablishing fiscal budgetsGranting loans to consumers34.Fiscal policy refers to: Changes in taxes and government purchases made bylegislation for the purpose of stabilizing the economyThe authority that the prime minister has to changepersonal income tax ratesChanges in government purchases or taxes that have theeffect of destabilizing the economyChanges in the money supply and interest rates by theBank of Canada535.If real income, employment, and investment are rising, the economy is: At the phase called the peakIn a period of expansionIn a phase called a recessionIn a trough36.A fractional reserve banking system is one in which banks within the system: Can lend out all of their reservesKeep all of their reservesCan lend out only a fraction of their reservesPay higher rates of interest to depositors thanthey charge to borrowers.37.An industry composed of three firms, each of which considers the potential reactions of its rivals in making pricing decisions, yet is not concerned with the potential entry of other firms, can best be described as: perfect competitiona monopolyan oligopolymonopolistic competition38.Product differentiation and advertising are used by imperfectly competitive businesses to achieve the two goals of: increased demand and demand elasticitydecreased demand elasticity and increased opportunityto engage in successful price fixingthe provision of consumer information and thepromotion of consumer preferencesincreased demand and decreased demand elasticity39.GDP includes: neither intermediate nor final productsboth intermediate and final productsintermediate, but not final, productsfinal, but not intermediate, products40.Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year. If in that year the firm sold 100 000 units of its output at $50 per unit, its accounting: profits were zero and its economic losses were $500 000losses were $500 000 and its economic losses were zeroprofits were $500 000 and its economic profits were $1millionprofits were zero and its economic profits were $500 00041.The elasticity of demand for a product is likely to be greater: if the product is a "necessity" rather than a "luxury"goodthe greater the amount of time over whichproducers adjust to a price changethe smaller the number of substitute productsthe greater the amount of time over which buyersadjust to a price change42.In which of the following instances does total revenue increase? price falls and supply is inelasticprice falls and demand is unit-elasticprice rises and demand is inelasticprice rises and demand is elastic43.Which of the following is a microeconomic statement? Total economic output increased by 2.5 percent lastyear.Unemployment was 9.8 percent of the labour forcelast year.The price of wheat declined last year.The general price level increased by 4 percent lastyear44.The multiplier effect means that: consumption is typically several times larger thanwithdrawalsan increase in spending can cause aggregate demand tochange by a larger amountan increase in consumption can result in a largerincrease in government purchasesa small decline in MPC can cause aggregate demand torise by several times that amount45.The spending multiplier is calculated using the formula: 1/MPW(1-MPW)/MPC(1-MPC) MPW1/MPC46.Which of the following is not a tool of monetary policy? an increase in the target overnight ratean open market purchase of bondschanges in tax ratesan open market sale of bonds47.If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that: the spending multiplier is 2.00the MPC for this economy is 0.33unemployment is risingthe MPW for this economy is 0.3348.The public debt: refers to the debts of Canadian governments,businesses, and householdsconsists of the total debts of Canadian provincial andterritorial governmentsrefers to the collective amount that Canadians owe toforeignersconsists of the accumulation of all past federal deficitsminus any federal surpluses

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Answered: 38.Product differentiation and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Just solve questions 38-43, thank u!

33.Which of the following is a role of the Bank of

Canada?

Managing the money supply
Increasing or decreasing government spending
Establishing fiscal budgets
Granting loans to consumers
34.Fiscal policy refers to:
Changes in taxes and government purchases made by

legislation for the purpose of stabilizing the economy

The authority that the prime minister has to change

personal income tax rates

Changes in government purchases or taxes that have the

effect of destabilizing the economy

Changes in the money supply and interest rates by the

Bank of Canada5

35.If real income, employment, and investment

are rising, the economy is:

At the phase called the peak
In a period of expansion
In a phase called a recession
In a trough
36.A fractional reserve banking system is one in

which banks within the system:

Can lend out all of their reserves
Keep all of their reserves
Can lend out only a fraction of their reserves
Pay higher rates of interest to depositors than

they charge to borrowers.

37.An industry composed of three firms, each of

which considers the potential reactions of its rivals in

making pricing decisions, yet is not concerned with the

potential entry of other firms, can best be described

as:

perfect competition
a monopoly
an oligopoly
monopolistic competition
38.Product differentiation and advertising are used by

imperfectly competitive businesses to achieve the two

goals of:

increased demand and demand elasticity
decreased demand elasticity and increased opportunity

to engage in successful price fixing

the provision of consumer information and the

promotion of consumer preferences

increased demand and decreased demand elasticity
39.GDP includes:
neither intermediate nor final products
both intermediate and final products
intermediate, but not final, products
final, but not intermediate, products
40.Suppose that a business had implicit costs of $500

000 and had explicit costs of $5 million in a specific year.

If in that year the firm sold 100 000 units of its output at

$50 per unit, its accounting:

profits were zero and its economic losses were $500 000
losses were $500 000 and its economic losses were zero
profits were $500 000 and its economic profits were $1

million

profits were zero and its economic profits were $500 000
41.The elasticity of demand for a product is likely to

be greater:

if the product is a "necessity" rather than a "luxury"

good

the greater the amount of time over which

producers adjust to a price change

the smaller the number of substitute products
the greater the amount of time over which buyers

adjust to a price change

42.In which of the following instances does total

revenue increase?

price falls and supply is inelastic
price falls and demand is unit-elastic
price rises and demand is inelastic
price rises and demand is elastic
43.Which of the following is a microeconomic

statement?

Total economic output increased by 2.5 percent last

year.

Unemployment was 9.8 percent of the labour force

last year.

The price of wheat declined last year.
The general price level increased by 4 percent last

year

44.The multiplier effect means that:
consumption is typically several times larger than

withdrawals

an increase in spending can cause aggregate demand to

change by a larger amount

an increase in consumption can result in a larger

increase in government purchases

a small decline in MPC can cause aggregate demand to

rise by several times that amount

45.The spending multiplier is calculated using the

formula:

1/MPW
(1-MPW)/MPC
(1-MPC) MPW
1/MPC
46.Which of the following is not a tool of monetary

policy?

an increase in the target overnight rate
an open market purchase of bonds
changes in tax rates
an open market sale of bonds
47.If government purchases increase by $20 billion

and aggregate demand shifts rightward by $30 billion

as a result, we can conclude that:

the spending multiplier is 2.00
the MPC for this economy is 0.33
unemployment is rising
the MPW for this economy is 0.33
48.The public debt:
refers to the debts of Canadian governments,

businesses, and households

consists of the total debts of Canadian provincial and

territorial governments

refers to the collective amount that Canadians owe to

foreigners

consists of the accumulation of all past federal deficits

minus any federal surpluses

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