29. To economists, the main difference between "the short run" and "the long run" is that: the law of diminishing marginal returns applies in the long run but not in the short run in the long run, all resources are variable while in the short run, at least one resource is fixed fixed costs are more important to decision making in the long run than they are in the short run in the short run all resources are fixed, while in the long run all resources are variable A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded Which of the following would decrease aggregate demand and shift the AD curve to the left? a decline in personal income tax rates a decline in consumer spending a higher level of government purchases a fall in interest rates
Just need to solve questions 29-36, thanks!
25Ms. Eckstein has lost her job in a Quebec textile
plant because of import competition. She intends
to take a short course in electronics and move to
Alberta where she anticipates new jobs will be
available. We can say that Ms. Eckstein is faced
with:
- secular
unemployment - cyclical unemployment
- structural unemployment
- frictional unemployment
- 26Inflation:
- Always reduces the cost of living
- Always reduces the standard of living
- Reduces the price of products
- Reduces
purchasing power
27 Using the chart below calculate GDP using the
expenditure approach.
Gov’t purchases $45B
Rental income $31B
Exports
$18B
Indirect taxes
$27B
Gross investment $37B
Wages and salaries $78B
Corporate profit $40B
Interest income $19B
Imports
$17B
Net investments $28B
Consumer spending $87B
$9B
- $195B
- $170B
- $161B
- $186B
28 If a legal ceiling price is set below the
- a shortage of the product will occur
- a surplus of the product will occur
- an underground market will evolve
- neither the equilibrium price nor
equilibrium quantity will
be affected
- 29. To economists, the main difference between "the
short run" and "the long run" is that:
- the law of diminishing marginal returns applies in the
long run but not in the short run
- in the long run, all resources are variable while in the
short run, at least one resource is fixed
- fixed costs are more important to decision making in
the long run than they are in the short run
- in the short run all resources are fixed, while in the
long run all resources are variable
- A surplus of product will occur when price is:
- above equilibrium with the result that quantity
demanded exceeds quantity supplied
- above equilibrium with the result that quantity
supplied exceeds quantity demanded
- below equilibrium with the result that quantity
demanded exceeds quantity supplied
- below equilibrium with the result that quantity
supplied exceeds quantity demanded
- Which of the following would decrease
aggregate demand and shift the AD curve to the
left?
- a decline in personal income tax rates
- a decline in consumer spending
- a higher level of government purchases
- a fall in interest rates
- Which of the following is an implicit cost to the
Johnston Manufacturing Company?
- payments of wages to its office workers
- property taxes
- rent paid for the use of equipment owned by the
Schultz Machinery Company
- returns that the shareholders could have received if
they had not bought shares in the Johnson
Manufacturing Company
- Which of the following is a role of the Bank of
Canada?
- Managing the money supply
- Increasing or decreasing government spending
- Establishing fiscal budgets
- Granting loans to consumers
- Fiscal policy refers to:
- Changes in taxes and government purchases made by
legislation for the purpose of stabilizing the economy
- The authority that the prime minister has to change
personal income tax rates
- Changes in government purchases or taxes that have the
effect of destabilizing the economy
- Changes in the money supply and interest rates by the
Bank of Canada5
- If real income, employment, and investment
are rising, the economy is:
- At the phase called the peak
- In a period of expansion
- In a phase called a recession
- In a trough
- A fractional reserve banking system is one in
which banks within the system:
- Can lend out all of their reserves
- Keep all of their reserves
- Can lend out only a fraction of their reserves
- Pay higher rates of interest to depositors than
they charge to borrowers.
- An industry composed of three firms, each of
which considers the potential reactions of its rivals in
making pricing decisions, yet is not concerned with the
potential entry of other firms, can best be described
as:
perfect competition - a
monopoly - an oligopoly
monopolistic competition - Product differentiation and advertising are used by
imperfectly competitive businesses to achieve the two
goals of:
- increased demand and demand elasticity
- decreased demand elasticity and increased opportunity
to engage in successful price fixing
- the provision of consumer information and the
promotion of consumer preferences
- increased demand and decreased demand elasticity
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