test2_b - Name: _ Macroeconomics Fall 2010 Test #2 Version...

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Name: ________________________ Macroeconomics Fall 2010 Test #2 – Version B Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Suppose that because of the popularity of the low-carb diet, bakeries want fewer workers and steak houses want more workers. This is an example of a. structural unemployment created by sectoral shifts. b. structural unemployment created by efficiency wages. c. frictional unemployment created by efficiency wages. d. frictional unemployment created by sectoral shifts. ____ 2. A firm may pay efficiency wages in an attempt to a. reduce turnover. b. reduce incentives to shirk. c. attract higher-qualified applicants. d. All of the above are correct. Figure 9-2 ____ 3. Refer to Figure 9-2 . With free trade, this country will a. import 65 baskets. b. export 105 baskets. c. import 40 baskets. d. export 65 baskets. ____ 4. Refer to Figure 9-2 . With free trade, consumer surplus is a. $80. b. $210. c. $245. d. $45.
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Figure 9-16. The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. ____ 5. Refer to Figure 9-16. Government revenue raised by the tariff is represented by the area a. Area B + D + E + F. b. Area E. c. Area D + E + F. d. Area B + E. ____ 6. Refer to Figure 9-16. The tariff a. decreases producer surplus by the area C + D. b. increases producer surplus by the area C. c. decreases producer surplus by the area C. d. increases producer surplus by the area G + C. ____ 7. Refer to Figure 9-16. Consumer surplus, after the imposition of the tariff, is a. Area A. b. Area C. c. Area A + B. d. Area C + G. ____ 8. Both tariffs and import quotas a. increase the quantity of imports and raise the domestic price of the good. b. decrease the quantity of imports and raise the domestic price of the good. c. decrease the quantity of imports and lower the domestic price of the good. d. increase the quantity of imports and lower the domestic price of the good. ____ 9. Several arguments for restricting trade have been advanced. Those arguments do not include a. the infant-industry argument. b. the jobs argument. c. the no-deadweight-loss argument. d. the protection-as-a-bargaining-chip argument.
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____ 10. The value of the housing services provided by the economy's owner-occupied houses is a. included in GDP, and the estimated rental values of the houses are used to place a value on these housing services. b. included in GDP, and the actual mortgage payments made on the houses are used to estimate the value of these rental services. c. excluded from GDP since these services are not sold in any market. d. excluded from GDP since the value of these housing services cannot be estimated with any degree of precision. ____ 11.
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test2_b - Name: _ Macroeconomics Fall 2010 Test #2 Version...

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