Questions from General Economics


Q: The ability of the Federal Reserve to control interest rates is

The ability of the Federal Reserve to control interest rates is a) limited almost entirely to short-term rates. b) limited almost entirely to long-term rates. c) limited almost entirely to interme...

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Q: One issue that some call a consequence and others call a cause

One issue that some call a consequence and others call a cause of slowing growth is a) a slowing rate of increase in the population. b) a change in the demographic mix of people to nonworking popula...

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Q: Of the following justifications for limiting trade, which one would economists

Of the following justifications for limiting trade, which one would economists be least likely to endorse? Some goods should not be imported because a) they are important for national defense (e.g.,...

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Q: When examining the “right tax” on a good that produces

When examining the “right tax” on a good that produces an externality, the tax should be such that a) it is greater than the externality. b) it is less than the externality. c) it is exactly equal...

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Q: Of course, all individual students are better off if they get

Of course, all individual students are better off if they get better grades. If you were to conclude that all students would be better off if everyone received an A you would a) have fallen victim to...

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Q: The result that a firm should produce where MC = MR except

The result that a firm should produce where MC = MR except when the shutdown condition is met is based on the assumption that it is attempting to a) maximize profit. b) maximize market share. c) m...

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Q: How academics look at the evidence on how much women make relative

How academics look at the evidence on how much women make relative to men is an issue that very much depends on a) which year you look at. b) which state you look at. c) whether you categorize some...

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Q: An increase in the income of consumers will cause the a

An increase in the income of consumers will cause the a) supply of all goods to rise. b) demand for all goods to rise. c) supply of all goods to fall. d) the demand for some goods to rise and for...

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Q: When a satellite television company gains a subscriber there is no impact

When a satellite television company gains a subscriber there is no impact on existing subscribers. That is, there is no rivalry in the consumption for their service. This is an example of a a) purely...

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Q: Discretionary fiscal policy as a tool for making things better is

Discretionary fiscal policy as a tool for making things better is a) universally applauded as being helpful. b) universally derided for never being effective. c) considered by many to be effective...

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