Questions from General Economics

Q: The Federal Reserve's response to the recession of 2007-2008 was

The Federal Reserve's response to the recession of 2007-2008 was a) clearly effective in shortening the recession. b) quick but not obviously effective in shortening the recession. c) slow and sub...

Q: The dependency ratio in the United States is a) growing

The dependency ratio in the United States is a) growing. b) steady. c) falling rapidly. d) falling slowly.

Q: One of the biggest problems for developing countries is that they are

One of the biggest problems for developing countries is that they are all too often a) ruled by representative democracies. b) populated by people unwilling to work hard. c) lack the financial, phy...

Q: Medicaid spending per recipient is a) twice that of the

Medicaid spending per recipient is a) twice that of the average citizen’s use of health care. b) somewhat less than the average citizen’s use of health care. c) somewhat greater than the average ci...

Q: If the supply and demand curves cross at a price of $

If the supply and demand curves cross at a price of $2, at any price above that there will be a) an equilibrium. b) a surplus. c) a shortage. d) a crisis.

Q: The underlying reason production possibilities frontiers are likely to be bowed out

The underlying reason production possibilities frontiers are likely to be bowed out (rather than linear) is a) choices have consequences. b) there is always opportunity costs. c) some resources and p...

Q: If the supply and demand curves cross at a quantity of 100

If the supply and demand curves cross at a quantity of 100, then the price necessary to get firms to sell more than that will have to be _______ equilibrium. a) above b) at c) below d) within 10 p...

Q: Combined the consumer surplus and producer surplus at equilibrium is a

Combined the consumer surplus and producer surplus at equilibrium is a) lower than it would be at prices below equilibrium. b) lower than it would be at prices above equilibrium. c) typically nega...

Q: Whether marginal revenue is constant or decreasing depends on a)

Whether marginal revenue is constant or decreasing depends on a) whether the firm is benefiting from the division of labor. b) whether the firm is dealing with diminishing returns. c) how much the...

Q: Substitution in the context of the “rational terrorist model” suggests

Substitution in the context of the “rational terrorist model” suggests that a clampdown at airports will a) end terrorism. b) cause terrorists to target airports even more as they attempt to show th...