econ final - 1. AreviewoftheperformanceoftheU.S.

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1.    A review of the performance of the U.S.  economy during the 1990s is primarily the  concern of: a. macroeconomics. b. microeconomics. c. both macroeconomics and  microeconomics. d. neither macroeconomics nor  microeconomics. status: incorrect  score: 0.0 correct answer: a your answer: b rejoinder: Incorrect. Macroeconomics is the  study of the economy as a whole. 2.    Using a production possibilities curve,  unemployment is represented by a point  located: a. near the middle of the curve. b. at the top corner of the curve. c. at the bottom corner of the  curve. d. outside the curve. e. inside the curve. status: incorrect  score: 0.0 correct answer: e your answer: d rejoinder: Incorrect. Any point underneath the  production possibilities curve indicates that  the economy's resources are not being used  efficiently, including labor. 3.    Assuming that steak is a normal good, a 
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decrease in consumer income, other things  being equal, will: a. cause a downward movement  along the demand curve for steak. b. shift the demand curve for  steak to the left. c. cause an upward movement  along the demand curve for steak. d. shift the demand curve for  steak to the right. status: incorrect  score: 0.0 correct answer: b your answer: c rejoinder: Incorrect. Normal goods are goods  that people will buy more of as their incomes  increase and less of as their income  decreases. 4.    An increase in the wage paid to grape pickers  will cause the: a. demand curve for grapes to  shift to the right, resulting in higher prices for  grapes. b. demand curve for grapes to  shift to the left, resulting in lower prices for  grapes. c. supply curve for grapes to  shift to the left, resulting in lower prices for  grapes. d. supply curve for grapes to  shift to the left, resulting in higher prices for  grapes. status: incorrect  score: 0.0 correct answer: d your answer: a rejoinder: Incorrect. An increase in costs is  one factor that will cause the supply curve to  shift to the left as production becomes more 
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expensive, as illustrated. 5.    Suppose the quantity of steak purchased by  the Jones family is 110 pounds per year when  the price is $2.10 per pound and 90 pounds  per year when the price is $3.90 per pound.  The price elasticity of demand coefficient for  this family is: a. 0.33 b. 0.50 c. 1.00 d. 2.00 status: incorrect  score: 0.0 correct answer: a your answer: c rejoinder: Incorrect. (110 - 90)/(110 + 90) =  20/200 = 1/10 divided by (2.10 - 3.90)/(2.10 + 3.90) = 1.80/6.00 Elasticity coefficient = 1/10 x 6.00/1.80 = 0.33 6.    Assuming that the marginal cost curve is a  smooth J-shaped curve, the corresponding 
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This note was uploaded on 04/18/2011 for the course ECON 101 taught by Professor Kraley during the Spring '11 term at Clark College.

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econ final - 1. AreviewoftheperformanceoftheU.S.

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