Economics Mirrored Concepts Quiz

What is the relationship between the short-run aggregate supply curve and the Phillips curve?

• They are mirrored images of each other.

• They are both demand curves.

• They are unrelated.

• They are identical.

Which equation represents the spending multiplier?

• 1 over the inflation rate

• 1 over the reserve requirement

• 1 over the marginal propensity to save

• 1 over the marginal propensity to consume

How do the CPI and GDP deflator differ in their approach?

• CPI uses a fixed basket of goods, GDP deflator uses all goods.

• CPI measures only imported goods, GDP deflator measures only exported goods.

• CPI is for consumers, GDP deflator is for producers.

• CPI is a percentage, GDP deflator is an index.

What is the sum of the marginal propensity to consume and the marginal propensity to save?

• 0.5

• 1

• 2

• 0

In comparative advantage, how do input and output questions relate?

• They are the same.

• Input questions are the inverse of output questions.

• They have no relation.

• Input questions are more complex.

What is the common formula for calculating marginal values in microeconomics?

• Total divided by quantity

• Change in quantity divided by change in total

• Change in total divided by change in quantity

• Quantity divided by total

Which type of elasticity involves the price of a different product?

• Cross-price elasticity

• Income elasticity

• Price elasticity of supply

• Price elasticity of demand

What do average fixed cost and average variable cost sum up to?

• Marginal cost

• Variable cost

• Average total cost

• Total cost

What is the utility maximizing rule focused on?

• Maximizing total utility

• Maximizing profit

• Minimizing cost

• Maximizing utility per dollar spent

When should a firm produce according to the profit maximizing rule?

• When marginal cost is greater than marginal revenue

• When total revenue is maximized

• When marginal revenue equals marginal cost

• When total cost is minimized