Just solve questions 41-44, thank u! 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded 31.Which of the following would decrease aggregate demand and shift the AD curve to the left? a decline in personal income tax rates a decline in consumer spending a higher level of government purchases a fall in interest rates 32.Which of the following is an implicit cost to the Johnston Manufacturing Company? payments of wages to its office workers property taxes rent paid for the use of equipment owned by the Schultz Machinery Company returns that the shareholders could have received if they had not bought shares in the Johnson Manufacturing Company 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

Just solve questions 41-44, thank u! 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded 31.Which of the following would decrease aggregate demand and shift the AD curve to the left? a decline in personal income tax rates a decline in consumer spending a higher level of government purchases a fall in interest rates 32.Which of the following is an implicit cost to the Johnston Manufacturing Company? payments of wages to its office workers property taxes rent paid for the use of equipment owned by the Schultz Machinery Company returns that the shareholders could have received if they had not bought shares in the Johnson Manufacturing Company 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Just solve questions 41-44, thank u!

30.A surplus of product will occur when price is:

above equilibrium with the result that quantity

demanded exceeds quantity supplied

above equilibrium with the result that quantity

supplied exceeds quantity demanded

below equilibrium with the result that quantity

demanded exceeds quantity supplied

below equilibrium with the result that quantity

supplied exceeds quantity demanded

31.Which of the following would decrease

aggregate demand and shift the AD curve to the

left?

a decline in personal income tax rates
a decline in consumer spending
a higher level of government purchases
a fall in interest rates
32.Which of the following is an implicit cost to the

Johnston Manufacturing Company?

payments of wages to its office workers
property taxes
rent paid for the use of equipment owned by the

Schultz Machinery Company

returns that the shareholders could have received if

they had not bought shares in the Johnson

Manufacturing Company

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

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