macrofinal - 1. Government policies designed to promote...

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1. Government policies designed to promote efficiency: a. usually do so at the expense of equity. b. tend to cause the economy to grow more slowly. c. always fail. d. require very high taxes. -------------------------------------------------------------------------------- 2. All of the following are characteristics of the Circular Flow Model of the economy, EXCEPT: a. the model has two markets: one for goods and services and one for factors of production. b. the model includes two sectors: the Firms sector and the Households sector. c. the model describes two circular flows: one for inputs and one for resources. d. the two flows described by the model move in opposite directions. -------------------------------------------------------------------------------- 3. Suppose that Jill can type 10 pages per hour in the computer, while Jim can only type 8. Further suppose that Jill can review 5 articles per hour while Jim can only review 2. If they are working on a final project together, who should specialize in what task in order to be as productive as possible? a. Jill should specialize in typing and Jim in reviewing articles. b. Jill should specialize in reviewing articles and Jim in typing. c. Jill should perform both tasks, since she is better at both than Jim. d. Jim should perform both tasks, since he is better at both than Jill. -------------------------------------------------------------------------------- 4. A new technology that helps firms reduce production costs will cause a: a. movement down and to the left along the supply curve. b. movement up and to the right along the supply curve. c. shift to the right of the supply curve. d. shift to the left of the supply curve. -------------------------------------------------------------------------------- 5. The price elasticity of demand tends to be more elastic: a. at points further up and to the left along the demand curve.
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b. at points further down and to the right along the demand curve. c. when the demand curve becomes steeper.
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macrofinal - 1. Government policies designed to promote...

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