1 A) population increased at approximately the same rate as output, leaving output per person unchanged B) average family sizes increased at the same rate as output per person C) constant wars reduced the size of the population at the same rate as output was falling, leaving output per person unchanged D) constant wars depleted the economy's capital stock, resulting in little or no growth of total output 2 A) have approximately tripled for both rich and poor countries, leaving the relative gap between rich and poor countries the same B) have grown fastest in what were then the poorest countries, resulting in much less variation between rich and poor nations C) currently show considerably more variation between rich and poor countries D) show no marked trend regarding the gap between rich and poor countries 3 A) an economic investment B) a financial investment C) dissaving D) the same as the purchase of new plant and equipment 4 A) output would fluctuate in inverse proportion to the price changes B) output would remain constant and resources remain fully employed C) output would fluctuate in direct proportion to the price changes D) output would fluctuate in inverse proportion to changes in employment 5 A) rising inventories followed by cuts in production B) falling inventories followed by cuts in production C) immediate cuts in both production and desired inventory levels D) rising inventories followed by increased employment of resources 6 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0217511447/883751/ch23_q6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (14.0K)</a>]]> DM . With flexible prices, which of the following is the most likely initial consequence of a change in demand?A) Production will drop to 35 bars per week if demand unexpectedly falls to DL B) Production will rise to 65 bars per week if demand predictably rises to DH C) Profits will rise if demand unexpectedly rises to DH D) The price will rise to $6 and production will rise to 65 bars per week if demand unexpectedly rises to DH 7 A) Feed corn B) Oil C) Natural gas D) Magazines 8 A) prices are more flexible in the short run than the long run B) prices are more flexible in the long run than the short run C) demand shocks are more common in the short run while supply shocks are more common in the long run D) government and central bank policies are destabilizing in the short run but effective in the long run 9 A) negative demand shock B) negative supply shock C) positive demand shock D) positive supply shock 10 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0217511447/883751/ch23_q10.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (13.0K)</a>]]> DM . Production will likely fall to 35 bars per week if:A) prices are flexible and demand unexpectedly falls to DL B) prices are inflexible and demand unexpectedly falls to DL C) prices are flexible and demand predictably falls to DL D) the price unexpectedly falls to $2
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