Question: 1(a): Why price $50 & Q=100m not other values?
Answer: Because that’s the equilibrium where supply equals demand.
Question: 1(b): Price ceiling at $40 effect?
Answer: Creates shortage; some consumers may benefit short-term, but overall inefficiencies arise.
Question: 1(c): Demand for crude oil elastic or inelastic?
Answer: Inelastic demand.
Question: 1(d): Supply of crude oil elastic or inelastic?
Answer: Inelastic supply in short run.
Question: 1(e): If supply increases and demand inelastic, price and Q?
Answer: Price falls significantly, quantity rises slightly.
Question: 2(a): Minimum wage at $15 when eq= $10:
Answer: Surplus of labor (unemployment). Benefit: some workers earn more. Drawback: others lose jobs.
Question: 2(b): Min wage below eq ($8 when eq=$10):
Answer: Non-binding. Benefits: Stability if eq changes, safety net. Drawbacks: No immediate effect, adds complexity without raising wages above eq.
Question: 3(a): Three externalities and solutions:
Answer: Negative externality (pollution) – tax or regulate. Positive externality (vaccinations, education) – subsidize or encourage for greater societal benefit.
Question: An ER nurse plans care for a patient admitted with heat stroke. Which interventions does the nurse include in this patient’s plan of care? Select all that apply.
Answer Options: Administer acetaminophen, an antipyretic medication Administer oxygen via mask or nasal cannula Obtain baseline serum electrolytes and cardiac enzymes Infuse 0.9% sodium chloride via a large-bore IV cannula Apply cooling techniques until core body temperature is less than 102 degrees F
Answer: Administer oxygen via mask or nasal cannula Obtain baseline serum electrolytes and cardiac enzymes Infuse 0.9% sodium chloride via a large-bore IV cannula Apply cooling techniques until core body temperature is less than 102 degrees F
Question: An ER nurse is preparing to transfer a patient to the ICU. Which information should the nurse include in the nurse-to-nurse hand-off report? Select all that apply.
Answer Options: Immunizations Diagnostic test results Isolation precautions Mechanism of injury List of home medications
Answer: Diagnostic test results Isolation precautions Mechanism of injury List of home medications
Question: Congressional bills authorizing an extension of federal unemployment benefits are held up for 9 months due to interparty disputes over funding Planned Parenthood. What potential problem with fiscal policy does this scenario illustrate?
Answer Options: A. Crowding Out, B. The Implementation Lag, C. The Democratic Process Lag, D. The Effectiveness Lag, E. The Recognition Lag
Answer: C. The Democratic Process Lag
Question: Fiscal policy lags are problematic because they
Answer Options: A. can increase the budget deficit, B. create monetary policy lags, C. may lead to too much or too little fiscal stimulus, D. lead to a timing problem.
Answer: D. lead to a timing problem
Question: Which of the following might be an appropriate discretionary fiscal policy given the economy illustrated below?
Answer Options: A. Raising government spending, B. Increasing the money supply, C. Raising marginal tax rates, D. Lowering transfer payments
Answer: A. Raising government spending
Question: Contractionary fiscal policies
Answer Options: A. reduce aggregate demand primarily by reducing investment and net exports, B. reduce tax rates, C. reduce interest rates and the money supply, D. reduce aggregate demand primarily by reducing consumption and government spending.
Answer: D. reduce aggregate demand primarily by reducing consumption and government spending
Question: Suppose the government implements a large tax cut without cutting government spending. While citizens may appreciate the tax cut, they may also suspect that they will need to pay higher taxes in the future to pay off the debt. As a result, rather than spending more, they may save more. This pattern of behavior is known as
Answer Options: A. Debt Neutrality, B. the Net Export Effect, C. Crowding Out, D. Fiscal Nullification.
Answer: A. Debt Neutrality
Question: Which of the following sets contains only expansionary fiscal policies?
Answer Options: A. Increasing government spending, decreasing taxes, and increasing transfer payments, B. Increasing government spending, increasing taxes, and decreasing transfer payments, C. Increasing government spending, increasing taxes, and increasing transfer payments, D. Increasing government spending, decreasing taxes, and decreasing transfer payments
Answer: C. Increasing government spending, increasing taxes, and increasing transfer payments
Question: Suppose that increased government borrowing leads to rising domestic interest rates, which drives up foreign demand for U.S. securities. Which of the following is likely to occur?
Answer Options: A. Net exports decline for the U.S., B. Consumption rises as foreigners buy more U.S.-made goods, C. The value of the U.S. dollar declines internationally, D. Domestic investment increases due to higher interest rates.
Answer: C. The value of the U.S. dollar declines internationally