1.If the central bank opts to lower the reserve requirement, which of the following would likely happen?

The rate of consumer saving will increase

Firms would be more encouraged to purchase more factories and equipment

The budget deficit will increase

Inflation and unemployment will both increase

2.Consumers perceive coffee and tea as substitutes.How would a decrease in the supply of coffee affect the market for tea?

Increasing the supply for tea, ultimately increasing the price of tea as well

Decreasing the demand for tea, ultimately decreasing the price of tea as well.

Increasing the demand for tea,

ultimately increasing the price of tea as well

Decreasing the supply for tea, ultimately decreasing the price of tea as well

3.A profit-maximizing firm is perfectly competitive and is at long-run equilibrium. The output of the firm is 200 units, the total revenue is $1,200.00, and the fixed cost of production is $100.00.Based on the information given, which of the following applies for the firm?

The firm's marginal cost is $6.00, while the firm's average variable cost is $5.50

The firm's marginal cost is $6.00, and the firm's average total cost is $5.50

The firm's marginal cost is $5.50, while the firm's average total cost is $5.50

The firm's marginal cost is $6.00, and the firm's average fixed cost is $5.50

4.A bakery firm has an average variable cost of $70, an average fixed cost of $60, and a marginal cost of $130. The bakery prices its product at $130.Which of the following statements is applicable for the bakery firm?

Economic profits are zero because the firm's marginal revenue is equal to marginal cost

Economic profits are positive because the firm's total revenue is greater than total cost

Economic profits are zero because the product price is equal to the firm's average total cost

Economic profits are negative because the product price is greater than the firm's average variable cost

5.According to the central limit theorem, which of the following is true regarding the sampling distribution of the mean?

The sampling distribution of the mean approaches normality when the sample size increases

The sampling distribution of the mean appears normal when the sample size exceeds 1,000

The sampling distribution of the mean is always normal

The sampling distribution of the mean is only normal for large sample sizes

6.Which of the following is more likely to determine the probability of a type I error?

The sample size

The researcher

The degree of falsity of the null hypothesis

None of the above

7.A researcher has a random sample of 100 observations on variable z which is distributed normally with a mean of 15 and variance of 9. The sample average (zbar) is 16 and the sample variance is 8.What is the mean and variance of the sampling distribution of zbar?

The mean is 16 and its variance is 0.08

The mean is 16 and its variance is 8

The mean is 15 and its variance is 0.09

The mean is 15 and its variance is 9

8.What is the statistical relationship between a country's GNP per capita and birth rate?

There is no statistical relationship between a country's GNP per capita and birth rate

Birth rates increase regardless of whether GNP per capita increases or decreases

Birth rates increases as GNP per capita increases

Birth rates decreases as GNP per capita increases

9.If a tax proportional to carbon emissions was passed, what would happen to the market for gasoline?

Price would increase and quantity demanded would fall

Price would increase and quantity demanded would rise

Price would decrease and the quantity demanded would fall

Price would decrease and the quantity demanded would rise

10.Which of the following is NOT a reason why the cost of recycling is high?

Transport and processing costs of recycling are costly

Recycle processing factories are not near cities where most waste is generated

Costs of recycling labor are high

Individuals find recycling inconvenient