BUS 308 FINAL EXAM
1) An economist who is studying the relationship between the
money supply, interest rates, and the rate of inflation is
engaged in
A microeconomic research
.
B macroeconomic research
.
theoretical research, because there is no data on these
C
variables
.
empirical research, because there is no economic theory
D
related to these variables
.
2) A basic difference between microeconomics and
macroeconomics is that microeconomics
focuses on the choices of individual consumers, while
A
macroeconomics considers the behavior of large businesses
.
focuses on financial reporting by individuals, while
B
macroeconomics focuses on financial reporting by large firms
.
examines the choices made by individual participants
C in an economy, while macroeconomics considers the
. economy's overall performance
focuses on national markets, while macroeconomics
D
concentrates on international markets
.
3) The distinction between supply and the quantity supplied is
best made by saying that
the quantity supplied is represented graphically by a curve
A and supply as a point on that curve associated with a
. particular price
supply is represented graphically by a curve and the
B quantity supplied as a point on that curve associated
. with a particular price
the quantity supplied is in direct relation with prices, whereas
, C
supply is in inverse relation
.
the quantity supplied is in inverse relation with prices,
D
whereas supply is in direct relation
.
4) After several years of slow economic growth, world demand
for petroleum began to rise rapidly in the 1990s. Much of the
increase in demand was met by additional supplies from
sources outside the Organization of Petroleum Exporting
Countries (OPEC). OPEC, during this time, was unable to
restrain output among members in its effort to lift oil prices.
What best describes these events?
The rise in demand shifted the demand for oil to the right.
A
OPEC actions shifted the demand for oil back to the left.
.
The rise in demand shifted the demand for oil to the
B
right. As price rose, the supply of oil also rose.
.
The rise in demand shifted the demand for oil to the right. As
C
price rose, the quantity of oil supplied rose.
.
The rise in demand reflects a movement down along the
D demand curve as supply shifted to the right when suppliers
. produced more oil.
5) Price elasticity of demand is the:
change in the quantity of a good demanded divided by the
A
change in the price of that good
.
change in the price of a good divided by the change in the
B
quantity of that good demanded
.
percentage change in price of that good divided by the
C
percentage change in the quantity of that good demanded
.
percentage change in quantity demanded of a good
D divided by the percentage change in the price of that
. good
6) If average movie ticket prices rise by about 5 percent and
attendance falls by about 2 percent, other things being equal,
1) An economist who is studying the relationship between the
money supply, interest rates, and the rate of inflation is
engaged in
A microeconomic research
.
B macroeconomic research
.
theoretical research, because there is no data on these
C
variables
.
empirical research, because there is no economic theory
D
related to these variables
.
2) A basic difference between microeconomics and
macroeconomics is that microeconomics
focuses on the choices of individual consumers, while
A
macroeconomics considers the behavior of large businesses
.
focuses on financial reporting by individuals, while
B
macroeconomics focuses on financial reporting by large firms
.
examines the choices made by individual participants
C in an economy, while macroeconomics considers the
. economy's overall performance
focuses on national markets, while macroeconomics
D
concentrates on international markets
.
3) The distinction between supply and the quantity supplied is
best made by saying that
the quantity supplied is represented graphically by a curve
A and supply as a point on that curve associated with a
. particular price
supply is represented graphically by a curve and the
B quantity supplied as a point on that curve associated
. with a particular price
the quantity supplied is in direct relation with prices, whereas
, C
supply is in inverse relation
.
the quantity supplied is in inverse relation with prices,
D
whereas supply is in direct relation
.
4) After several years of slow economic growth, world demand
for petroleum began to rise rapidly in the 1990s. Much of the
increase in demand was met by additional supplies from
sources outside the Organization of Petroleum Exporting
Countries (OPEC). OPEC, during this time, was unable to
restrain output among members in its effort to lift oil prices.
What best describes these events?
The rise in demand shifted the demand for oil to the right.
A
OPEC actions shifted the demand for oil back to the left.
.
The rise in demand shifted the demand for oil to the
B
right. As price rose, the supply of oil also rose.
.
The rise in demand shifted the demand for oil to the right. As
C
price rose, the quantity of oil supplied rose.
.
The rise in demand reflects a movement down along the
D demand curve as supply shifted to the right when suppliers
. produced more oil.
5) Price elasticity of demand is the:
change in the quantity of a good demanded divided by the
A
change in the price of that good
.
change in the price of a good divided by the change in the
B
quantity of that good demanded
.
percentage change in price of that good divided by the
C
percentage change in the quantity of that good demanded
.
percentage change in quantity demanded of a good
D divided by the percentage change in the price of that
. good
6) If average movie ticket prices rise by about 5 percent and
attendance falls by about 2 percent, other things being equal,
