Review: Econ 2nd Semester

What is an important role of a commercial bank?

• prints money

• attempts to achieve price stability

• acts as the main bank of the government

• provides savings accounts for consumers

If there is a change in the demand for labour, how would the labour market be affected??

• Demand for labor decreases

  equilibrium change increases

  and change in labor supplied contracts

• Demand for labor increases

  equilibrium change increases

  and change in labor supplied extends

• Demand for labor increases

  equilibrium change increases

  and change in labor supplied contracts

• Demand for labor decreases

  equilibrium change decreases

  and change in labor supplied contracts

An oil company bought a petrol station, so it can have it's own retailing store of its products. Which term best describes this merger?

• forward vertical

• backward vertical

• conglomerate

• horizontal

In the diagram, what would cause the shift in the 2 curves ACT1 to ACT2?

• difficulties in controlling the firm

• external economies of scale

• financial economies of scale

• technical economies of scale

How come some people in a company earn more than the others in the same company?

• Some are older.

• Some have acquired more education than the others.

• Some are more productive.

• Some are more experienced than others.

Among the choices below, what is an advantage of a monopoly?

• choice is increased

• reduced prices

• more goods may be produced

• market forces set the prices

A firm’s average revenue is $50. It sells 5000 units. 

What are the firm’s total revenue and the price of the product?

• A

• B

• C

• D

How come the government provide goods to help private businesses in a mixed economic system? Select the best answer.

• government provides cheap goods

• government does not consider social costs

• government prevents monopolies

• 1. government provides public goods because private firms cannot charge for them

 What is not a function of money?

• medium of exchange

• durability

• store of value

• unit of account

The government introduces a national minimum wage. Carpenters receive a wage of $3000 a year.

Which conditions below will make carpenters go unemployed?

• National minimum wage (per year) = 3000

  Demand for carpentry services = increasing

• National minimum wage (per year) = 3000

  Demand for carpentry services = unchanged

• National minimum wage (per year) = 5000

  Demand for carpentry services = increasing

• National minimum wage (per year) = 5000

  Demand for carpentry services = unchanged