Final_Review Econ

Final_Review Econ - 1. Who wrote the Wealth of Nations? [A]...

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1. Who wrote the Wealth of Nations ? [A] Karl Marx [B] Joan of Arc [C] David Ricardo [D] Adam Smith [E] Benjamin Franklin 2. People (and all resources) [A] never consider opportunity costs. [B] consider only direct costs. [C] do not behave in their own self-interest. [D] tend to specialize in those activities in which their opportunity costs are maximized. [E] tend to specialize in those activities in which their opportunity costs are minimized. 3. Which of the following is a public good? [A] Apples [B] Bulldozers [C] Lumber [D] Apartment buildings [E] Lighthouses 4. DELETED 5. DELETED 6. As a measure of money, M1 emphasizes the use of money as [A] an illiquid asset. [B] a standard of deferred payment [C] a unit of account. [D] a store of value. [E] a medium of exchange. 7. The United States federal government had a balanced budget [A] in 2002. [B] through the 1960s and 1970s. [C] through the 1980s. [D] through the 1970s and 1980s. [E] in 1999 and 2000. 8. Which of the following is subtracted from GNP when calculating net national product?
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[A] Interest [B] Indirect business taxes [C] Consumption [D] Capital consumption allowance [E] Rent 9. Which of the following assets would be considered least liquid? [A] An antique automobile [B] A money market account [C] A certificate of deposit [D] A silver coin [E] A U.S. savings bond 10. What is the difference between the microeconomic functions of government and the macroeconomic functions? [A] Microeconomic functions deal with individual economic entities while macroeconomic functions deal with broad economic sectors. [B] There are no microeconomic functions because microeconomics deals with individual economic entities. [C] Macroeconomic functions deal with individual economic entities while microeconomic functions deal with broad economic sectors. [D] There are no macroeconomic functions of government because macroeconomics deals with broad economic sectors. [E] There is no difference. 11. Improvements in technology [A] cause the investment function to shift downward. [B] reduce profit expectations. [C] are irrelevant for a nation’s industrial progress. [D] increase autonomous investment spending. [E] cause lower rates of economic growth. 12. Individuals acting with rational self-interest [A] choose options that give them the greatest amount of satisfaction. [B] never do voluntary work. [C] always try to attain satisfaction at the expense of others. [D] are selfish. [E] always choose the same options as other rational individuals.
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13. Quantity Demanded Price / Unit Quantity Supplied 10 $5 50 20 4 40 30 3 30 40 2 20 50 1 10 Referring to the table above, if government imposes a price of $2, [A] the price will be above equilibrium. [B] the price will fall to $1 because producers will be forced to incur losses. [C] demand will increase. [D] a shortage will result equal to 20 units. [E] a surplus will result equal to 20 units.
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This note was uploaded on 04/10/2008 for the course ECON 2 taught by Professor Rupert during the Spring '08 term at UCSB.

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Final_Review Econ - 1. Who wrote the Wealth of Nations? [A]...

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