1. Which of the following is an implicit cost?
(i) the owner of a firm forgoing an opportunity to earn a large salary working for a Wall
Street brokerage firm
(ii) interest paid on the firm's debt
(iii) rent paid by the firm to lease office space
1. In a market that is characterized by imperfect competition,
a. firms are price takers
b. there are always a large number of firms
c. there are at least a few firms that compete with one another
d. the actions of one firm in the market never have any im
1. The aggregate quantity of goods demanded decreases if
a. real wealth falls.
b. the interest rate rises.
c. the dollar appreciates
d. All of the above are correct
2. A decrease in the price level
a. causes real wealth to rise, people to lend more, inter
1. Last year, Joan bought 50 pounds of hamburger when her households income was
$40,000. This year, he household income was only $30,000 and Joan bought 60
pounds of hamburger. All else constant, Joan's income elasticity of demand for
1. A result of welfare economics is that the equilibrium price of a product is
considered to be the best price because it
a. minimizes the level of welfare payments to those who no longer live below the
b. maximizes total revenue for firms an
1. Megasoft wants to finance the purchase of new equipment for developing security
software called Doors, but they have limited internal funds. Megasoft will likely
a. demand loanable funds by buying bonds
b. demand loanable funds by selling bonds
1. Current U.S. currency is
a. fiat money with intrinsic value
b. fiat money with no intrinsic value
c. commodity money with intrinsic value
d. commodity money with no intrinsic value
2. Given the following information, what would be the values of M1 and
1. If U.S. imports total $100 billion and U.S. exports total $150 billion, which of the
following is correct?
a. The U.S. has a trade surplus of $100 billion
b. The U.S. has a trade surplus of $50 billion
c. The U.S. has a trade deficit of $100 billion.
1. Economists use the phrase "There is no such thing as a free lunch," to illustrate the
a. inflation almost always results in higher prices over time.
b. if something looks too good to be true, it probably is not worth pursuing.
Tm tt, hng dn gii cu hi v bi tp gio trnh Kinh t V m ca Mankiw
Khoa hc kinh t v m
Tm tt :
Kinh t v m l b mn nghin cu nn kinh t vi t cch mt tng th, bao
gm s tng trng ca thu nhp, thay i gi c v t l tht nghi p. Cc nh
kinh t v m tm cch l gii
Exercises for Chapter 34
For the following question consult the diagram below:
1. Which of the following is correct?
a. If the interest rate is 4 percent, there is excess money demand, and the interest rate will fall.
b. If the
University of Economics, HCMC
International School of Business
PRINCIPLES OF ECONOMICS
PROBLEM SET 1
Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle that
a. inflation almost always results in higher p
Exercises for Chapter 28
The natural rate of unemployment is the
a. unemployment rate that would prevail with zero inflation.
b. rate associated with the highest possible level of GDP.
c. difference between the long-run and
1. If you deposit $100 into a demand deposit at a bank, this action by itself
does not change the money supply.
increases the money supply.
decreases the money supply.
has an indeterminate effect on the money supply.
2. Use the balance sheet f