An increase in the quantity demanded for a product would be associated with a(n):
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1 .If the nominal interest rate is 10% and the rate of inflation is 5%, the real interest rate is:
A 50% B 2% C 15% D 5%
2 .Which of the following individuals would be most hurt by an unanticipated increase in inflation?
A A retiree living on a fixed income. B A borrower whose debt has a fixed interest rate. C A union worker whose contract includes a provision for regular cost-of-living adjustments. D A saver whose savings was placed in a variable rate savings account.
3 .Which of the following statements regarding inflation is correct?
A Cost-push inflation can be caused by a decrease in nominal wages. B Demand-pull inflation can be caused by tax increases. C Individuals holding monetary assets will be at a disadvantage during periods of inflation. D Companies and individuals with fixed interest debt will be at a disadvantage duri...
4 .An industry that is oligopolistic would be best characterized by:
A One firm selling a product with no close substitutes. B The absence of significant economies of scale. C Significant barriers to entry. D Horizontal or flat demand curves for the output of individual firms.
5 .Which of the following is incorrect with regard to value chain analysis?
A The value chain starts with the firm and goes all the way through to the end users of the product. B Value chain analysis must be used in conjunction with the strategic plan of the organization. C Value chain analysis is a strategic tool that assists the firm in determining how important the perce...
7 .Which one of the following statements about supply and demand is true?
A If demand increases and supply increases, equilibrium quantity will fall. B If demand increases and supply remains constant, equilibrium price will fall. C If demand increases and supply decreases, equilibrium price will increase. D If supply increases and demand remains constant, equilibrium pric...
8 .The impact of a government price support program would most likely result in which of the following?
A Improve the rationing function of prices. B Lead to surpluses. C Lead to shortages. D Not influence the rationing function of prices.
9 .In microeconomics, the distinguishing characteristic of the long run on the supply side is that:
A Firms are not allowed to enter or exit the industry. B Only supply factors determine price and output. C All inputs are variable. D Only demand factors determine price and output.
10 .The demand curve for a product reflects which of the following?
A The impact that price has on the amount of a product purchased. B The impact that price has on the purchase amount of two related products. C The willingness of producers to offer a product at alternative prices. D The impact of prices on the amount of product offered.
