[ 2009 Mock Exam (AM) ] Economics .Questions 33-44 likely, potential, employment, gap, face

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33. Demand for guest rooms in a resort hotel increases from 100 to 150 rooms per night when the nightly room rate increases from $150 to $200. The elasticity of supply of guest rooms in the resort hotel is closest to:

A. 0.72.
B. 1.40.
C. 1.50.

34. A recessionary gap is more likely to be observed when:

A. real GDP is above potential GDP.
B. real GDP is below potential GDP.
C. employment is above full-employment equilibrium.

35. Which of the following statements is most accurate in regard to the tax division between buyers and sellers of products with perfectly elastic demand?

A. Sellers pay the entire tax.
B. Buyers bear the entire tax burden.
C. Buyers and sellers share the tax burden.

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 a

tangfaxi

thx

tangfaxi

谢谢

tangfaxi

谢谢

tangfaxi

谢谢

zippo1986

Thanks

viss

31. An

jerry732

问一下，这个题的难度跟真题比如何？谢谢！

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42. A change in the natural rate of unemployment will most likely shift:

A. the short-run but not the long-run Phillips curves.
B. both the short-run and the long-run Phillips curves.
C. neither the short-run nor the long-run Phillips curves.

Answer: B
“U.S. Inflation, Unemployment, and Business Cycles” Michael Parkin 2009 Modular Level I, Volume 2, pp. 392-395
Study Session 6-25-d Explain the impact of inflation on unemployment, and describe the short-run and long-run Phillips curve, including the effect of changes in the natural rate of unemployment. A change in the natural rate of unemployment shifts both short-run and long-run Phillips curves. Suppose the natural rate of unemployment increases from 6 to 9 percent, but the inflation remains constant at 10 percent. As a result, both short- run and long-run Phillips curves move outward adjusting to the new, higher level of natural unemployment rate. The new point of intersection between the two lines would be at 9 percent unemployment rate and 10 percent inflation rate (Figure 9, p. 395)

43. Which of the following goals of monetary policy is best described to be the key goal?

A. Price stability.
B. Full employment.
C. Moderating long-term interest rates.

Answer: A
“Monetary Policy,” Michael Parkin
2009 Modular Level I, Volume 2, pp. 446-448
Study Session 6-27-a Discuss the goals of U.S. monetary policy and the Federal Reserve’s (Fed’s) means for achieving the goals, including how the Fed operationalizes those goals. Price stability is considered to be the key goal of monetary policy in that it is the source for the other two monetary policy goals.

44. The least likely reason why a firm in perfect competition is a price taker is because:

A. buyers are well informed about prices of other firms.
B. it can set its products’ price at or above the market price.
C. it produces a very small portion of the total output of a particular good.

Answer: B
“Perfect Competition,” Michael Parkin
2009 Modular Level I, Volume 2, p. 153
Study Session 5-18-a Describe the characteristics of perfect competition, explain why firms in a perfectly competitive market are price takers, and differentiate between market and firm demand curves. A price taker is a firm that cannot influence the market price and consequently sets its own price at the market place price, not above it. The key reason why a firm in perfect competition is a price taker is because buyers are well informed about prices of other firms and it produces a tiny portion of the total market output.