1) The question is based on the following table that provides information on the
production of a product that requires one variable input.
Refer to the above table. Marginal product is zero when the total product is:
A.0
B.5
C.56
D.58
2) The following table illustrates alternative production techniques for producing 18
widgets that can be sold for $1 each for a total revenue of $18.
Refer to the above table. Using the technique cited in the previous question will result
in an:
A.Economic loss of $2
B.Economic profit of $1
C.Economic profit of $2
D.Economic profit of $3
3) Standard Census data on the distribution of income:
A.take all taxes and transfer payments into account.
B.are before taxes in that they do not account for personal income and payroll taxes.
C.include noncash transfers.
D.exclude cash transfers.
4) On a production possibilities curve, the single optimal or best combination of output
for any society:
A.Is at a point near the top of the curve
B.Is at the precise midpoint of the curve
C.Is at a point near the bottom of the curve
D.Depends upon the preferences of society
5) Assume that the short-run cost and demand data given in the tables below confront a
monopolistic competitor selling a given product and engaged in a given amount of
product promotion
Refer to the above tables. What output and price levels will maximize the firm’s profit
in the short run?
A.3 units and $45
B.4 units and $40
C.5 units and $35
D.6 units and $30
6) The legislation which prohibited acquisition of stock of another company if this
would significantly lessen competition is the:
A.Federal Trade Commission Act
B.Clayton Act
C.Celler-Kefauver Act
D.Wheeler-Lea Act
7) Currently capitalist income, that is, corporate profits, interest, and rent, accounts for
about what percentage of the income paid to American resource suppliers?
A.10 percent.
B.20 percent.
C.50 percent.
D.80 percent.
8) Future shortages in natural resource markets are not expected to occur widely due to:
A.Reduced hours at work
B.Reduced population growth
C.Higher standards of living
D.Higher per capita consumption
9) If products C and D are close substitutes, an increase in the price of C will:
A.tend to cause the price of D to fall.
B.shift the demand curve of C to the left and the demand curve of D to the right.
C.shift the demand curve of D to the right.
D.shift the demand curves of both products to the right.
10) Juan wants to migrate from Mexico to the United States but knows he cannot do so
legally at this time. If he decides to attempt to enter the United States illegally, which of
the following costs will he most likely not face?
A.Payment to an expediter (“coyote”) to facilitate his entry into the United States.
B.A green card application fee.
C.The loss of income from his current factory job.
D.All of these are costs he must incur to migrate.
11) The primary gain from international trade is:
A.increased employment in the domestic export sector.
B.more goods than would be attainable through domestic production alone.
C.tariff revenue.
D.increased employment in the domestic import sector.
12) The “future value” of a sum of money refers to:
A.the estimated value of that money invested in a stock portfolio at some future date.
B.the purchasing power of a given amount of money adjusted for price changes.
C.today’s value of a sum of money to be received in the future.
D.the amount to which some current sum of money will grow over time.
13) Small loans to entrepreneurs and small business owners in DVCs are referred to as:
A.human capital development projects.
B.microfinance.
C.capital flight promotion systems.
D.incubator lending.
14) Which of the following is correct?
A.If the demand for a product is inelastic, a change in price will cause total revenue to
change in the opposite direction.
B.If the demand for a product is inelastic, a change in price will cause total revenue to
change in the same direction.
C.If the demand for a product is inelastic, a change in price may cause total revenue to
change in either the opposite or the same direction.
D.The price elasticity coefficient applies to demand, but not to supply.