25.The profit-maximizing output for a perfectly competitive firm is
(A) The quantity at the intersection of the rising marginal revenue line and thefalling marginal cost curve.
(B) The quantity at the intersection of the horizontal marginal revenue line andthe falling marginal cost curve.
(C) The quantity at the intersection of the horizontal marginal revenue line andthe rising marginal cost curve.
(D) None of the above.

26.In 2022, Mark Hong purchased a 2020 Honda Civic from his neighbor for his son,purchased a 2019 "one owner" Camry from Larchmont Toyota for his wife, bought a 2022new Ford for himself, and sold his 2016 Dodge Caravan to his teenage nephew. Which,if any, of these transactions will be included in GDP in 2022?(A) all four transactions(B) all three purchases but not the sale(C) the purchase of the Ford and the Caravan(D) only the purchase of the Ford

27.Suppose Firm A buys a new copier for its store for $1000. A year later, when thisfirm wants to upgrade to a new copier, it finds that the old copier is only worth$750. Over the year the copier was used, ________ has occurred.(A) replacement investment (B) gross investment(C) depreciation (D) net investment

28.According to the Department of Statistics in country A, in the second quarter of2019 personal consumption expenditures grew by 1.7 percent, gross private domesticinvestment grew by 3.0 percent, government expenditure on goods and servicesdecreased by -0.9 percent, imports grew by 2.9%, and exports grew by 6.0%. Giventhese data, it is most likely that(A) GDP growth was positive in the 2nd quarter.(B) GDP growth was negative in the 2nd quarter.(C) the economy hit a business cycle peak.(D) the economy hit a business cycle trough.

29.A new 2021 automobile produced in 2021 and purchased in 2022 is(A) part of GDP in 2021.(B) part of GDP in 2022.(C) not part of GDP in either year because it was produced in one year and sold inanother year.(D) part of GDP in both 2021 and 2022.

30.According to the Department of Statistics in country A, in the second quarter of2019 state and local government spending on goods and services changed by -1.4percent. Using the expenditure approach, this change leads to(A) a decrease in government expenditure on goods and services.(B) no change in GDP because only federal government expenditures are included inGDP.(C) a decrease in gross private domestic investment.(D) no change in GDP because state and local government expenditure is alwayscanceled out by federal government expenditure.

31.Suppose the working age population in Big Town is 100 people. If 25 of thesepeople are NOT in the labor force, the ________ equals ________.(A) unemployment rate; 25/100 × 100 (B) unemployment rate; 25/75 × 100(C) labor force; 75 (D) labor force; 25/100 × 100

32.Which of the following people would be considered unemployed by the Bureau ofLabor Statistics?I. Mrs. Smith retires from her job at the age of 55 and does not look foranother job.II. Mr. Clark was laid off from his job as a welder, but expects to be rehired in8 months.(A) I only (B) II only(C) both I and II (D) neither I nor II

33.In country A, 23 million people are employed and 2 million are unemployed, but 5million part-time workers would prefer full-time work. What is the unemploymentrate?(A) 23.2 percent (B) 6.7 percent(C) 8 percent (D) 25 percent

34.The following table shows answers given by people interviewed in a governmentsurvey of households. Which individuals are considered to be a part of the laborforce? (A) Chris and Kathy (B) Bradley, Chris, and Kathy(C) John, Chris, and Kathy (D) John, Bradley, and Chris

35.Suppose country A is experiencing frictional unemployment of 1 percent, structuralunemployment of 3 percent and cyclical unemployment of 4 percent. What is thenatural unemployment rate?(A) 3 percent (B) 4 percent(C) 5 percent (D) 7 percent

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