QUESTIONS 31 THROUGH 42 RELATE TO ECONOMICS. (18 MINUTES)THE CROWDING-...

2.918 WSC/BDR.

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Question #33 of 120

Question ID: 1146299

An advantage of the Herfindahl-Hirschman Index (HHI) over the N-firm concentration ratio as a summary measure of the

market structure of an industry is that the HHI is more sensitive to:

A)

mergers.

barriers to entry.

B)

elasticity of demand.

Question #34 of 120

Question ID: 1146308

Which of the following does the U.S. central bank most often use to change the money supply?

The discount rate.

Open market operations.

The required reserve ratio.

Question #35 of 120

Question ID: 1146296

The price of milk in a country increases from €1.00 per liter to €1.10 per liter, and the quantity supplied does not change. This

suggests the elasticity of the short-run supply of milk in this country is equal to:

infinity, and supply is perfectly elastic.

zero, and supply is perfectly inelastic.

infinity, and supply is perfectly inelastic.

Question #36 of 120

Question ID: 1146304

In the short run, will an increase in the money supply increase the price level and real output?

Both will increase in the short run.

Neither will increase in the short run.

Only one will increase in the short run.

Question #37 of 120

Question ID: 1146313

The country of Colfax can produce 15 units of rice or 10 units of plastic per day of labor. The country of Birklund can produce

18 units of rice or 12 units of plastic per day of labor. With regard to potential benefits of trading rice and plastic between

Colfax and Birklund:

there are no potential gains from trade.

Colfax should produce and trade rice for Birklund’s plastic.

Birklund should produce and trade rice for Colfax’s plastic.

Question #38 of 120

Question ID: 1146309

The public sector is most likely to increase as a proportion of economic output if fiscal policy:

and monetary policy are both expansionary.

is contractionary and monetary policy is expansionary.

is expansionary and monetary policy is contractionary.

Question #39 of 120

Question ID: 1146315

Unlike members of free trade areas, customs union members:

adopt a single currency.

remove barriers to trade with all members.

adopt uniform trade restrictions with non-members.

Question #40 of 120

Question ID: 1146302

A perfectly elastic aggregate supply curve represents:

the productive capacity of an economy at full employment.

the production decisions of firms only in the very short run.

the short-run relationship between output and the price

level.

Question #41 of 120

Question ID: 1146312

Reasons why the unemployment rate is a lagging indicator of the business cycle least likely include:

discouraged workers who begin seeking work.

action lag in the implementation of unemployment

insurance.

high costs to employers of frequently hiring or firing

employees.

Question #42 of 120

Question ID: 1146300

A natural monopoly is most likely to exist when:

economies of scale are great.

average total cost increases as output increases.

a single firm owns essentially all of a productive resource.

Question #43 of 120

Question ID: 1151646