Chris Homemade Quiz

The best material to use for money has all of the following characteristics except

• durability

• portability

• low opportunity cost

• indivisibility

Suppose business firm leaders suddenly revise their expectations downwards and believe that a recession is coming. Aggregate demand will

• not change. This is an aggregate supply shift only.

• shift leftwards as business investment spending adjusts for expected declines in

  future production.

• shift rightwards because businesses will consume more in preparation for future

  production.

• shift leftwards because interest rates will rise.

"My income amount went up last year, but I paid the same dollar amount of taxes." This is an example of a(n)

• proportional tax rate system.

• regressive tax rate system.

• progressive tax rate system.

• ability-to-pay tax rate system.

State University makes this announcement: "We are going to raise tuition fees because we need to increase tuition revenues to the university to make up for losses in government funding." From this statement we know that State University is assuming that

• demand for their services is unit elastic.

• demand for their services is nonexistent.

• demand for their services is perfectly elastic.

• demand for their services is inelastic.

In the short run, the supply curve of a firm in perfect competition

• is the marginal cost curve above the market price.

• is the marginal cost curve above minimum average variable cost.

• is the average total cost curve above marginal cost.

• is the average variable cost curve above marginal cost.

If we divide United States households into fifths based on their income group (lowest 20%,

then the next 20%, etc. by income size), which of the following economic measures will be

the least equally distributed among the five groups?

• Total net wealth

• After-tax income

• Total consumption

• Food expenditures

• All of these are distributed about the same.

Which of the following is not true about pure public goods?

• These goods are available to all in equal amounts.

• One person's consumption reduces the amount available for others.

• The marginal cost of providing these goods to an additional consumer is zero.

• Thesegoodscannoteasilybesoldtoindividuals.

Financial crises

• are a relatively new phenomenon of the last half of the 1900s.

• happen in emerging economies but not in developed economies.

• are contained within a particular national economy.

• are possible in all industrialized countries.

• are now of short duration because of economic policy.

Suppose that Kim and Robert are the only two members of society. Kim is willing to pay $9 for the third unit of a public good. Robert is willing to pay $8 for the third unit of the same public good. The government's marginal cos of producing the third unit of the public good is $15. If the government's goal is to produce the optimal quantity of the public good,

• the third unit of the public good should be produced.

• zero units of the public good should be produced.

• the third unit of the public good should not be produced.

• one unit of the public good should be produced, but no more.

The money used by the United States is referred to as "flat money". This means that it is

• commodity money

• generally accepted because it can be exchanged for a metal such as gold and silver

• backed by gold at Fort Knox

• money because the government declares that it is