1)
Which of the following countries received the largest amount of emigrant remittances in
2011?
A.India
B.Mexico
C.Philippines
D.China
2) Why do cereals marketers most prefer to have their brand occupy the shelf-space a
foot or two below a typical adult’s eye-level?
A.Because they know that adults typically look down when they go by the store shelves
B.Because that shelf-space is the lowest-priced space they could occupy
C.Because it’s a lot easier to re-stock those shelf-spaces
D.Because they are targeting the children who go shopping with adults
3) Because of increasing opportunity costs, the production possibility curve:
A.Is bowed out from (or concave to) the origin
B.Can be either downward- or upward-sloping
C.At first rises, then falls eventually
D.Is a straight downward-sloping line
4)
Refer to the figure above. A nation that has an income distribution of perfect equality
would be represented by curve:
A.a
B.b
C.c
D.d
5) A price-discriminating monopolist will follow a system where:
A.Buyers with inelastic demand are charged higher prices than buyers with elastic
demand
B.Buyers with inelastic demand are charged lower prices than buyers with elastic
demand
C.All buyers are charged the same price regardless of their elasticity of demand
D.The price of the product is held the same even if the demand changes
6) A progressive income tax would cause the after-tax Lorenz curve, compared with the
before-tax Lorenz curve, to be:
A.More bowed toward the southeast
B.Less bowed toward the southeast
C.A vertical line
D.A horizontal line
7) As of 2013, the world’s population is approximately:
A.7 billion.
B.5 billion.
C.10 billion.
D.1.2 trillion.
8) Which of the following is an example of a labor-intensive commodity?
A.Digital cameras.
B.Beer.
C.Aspirin tablets.
D.Gasoline.
9) Answer the question on the basis of the following cost data for a firm that is selling
in a purely competitive market.
Refer to the data. If the market price for this firm’s product is $15, it will produce:
A.0 units at a loss of $150.
B.3 units at a loss of $168.
C.3 units at an economic profit of zero.
D.4 units at a loss of $138.
10)
Refer to the diagram. The quantitative difference between areas A and C for reducing
the price from P1 to P2 measures:
A.marginal cost.
B.marginal revenue.
C.monopoly price.
D.a welfare or efficiency loss.
11)
“Beaten paths” in the context of labor migration are:
A.Routes taken previously by family, relatives, and friends
B.Routes that have been “over used” by previous immigrants
C.Routes that are no longer followed by immigrants
D.Typical methods used to increase human capital
12) (Last Word) Suppose you borrow $500 and agree to pay this $500 plus $75 of
interest at the end of a year. The interest rate is:
A.10 percent.
B.15 percent.
C.12.5 percent.
D.7.5 percent.
13) Ticket scalping implies that:
A.event sponsors have established ticket prices at above-equilibrium levels.
B.an event is not likely to be sold out.
C.event sponsors have established ticket prices at below-equilibrium levels.
D.the demand for tickets has fallen between the time tickets were originally sold and
the event takes place.
14) Assume that the only variable resource used to produce output is labor.
Refer to the above table. Diminishing marginal returns set in with the addition of the:
A.First unit of labor
B.Second unit of labor
C.Third unit of labor
D.Fourth unit of labor
15) In which of the following pairs of antitrust cases did the firms prevail against the
antitrust charges leveled against them?
A.The Alcoa case and the Microsoft case.
B.The U.S. Steel case and the Alcoa case.
C.The DuPont cellophane case and the U.S. Steel case.
D.The U.S. Steel case and the Microsoft case.
16) 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 will the maximum total profits be?
A.$65
B.$85
C.$90
D.$110
17) Steve Jobs and Apple achieved tremendous successes with iMac, iPhone, iPad by:
A.Developing and producing these products in foreign locations
B.Outsourcing the development and production to other companies
C.Developing and producing both hardware and software
D.Mimicking, with great speed, its rivals and competitors
18) Which of the following is equivalent to the costs that firms incur in acquiring
economic resources?
A.Revenues from the product
B.Income of the resources
C.Money flowing from the resources
D.Profits from the resources employed
19) The simple circular flow model shows that:
A.households are on the buying side of both product and resource markets.
B.businesses are on the selling side of both product and resource markets.
C.households are on the selling side of the resource market and on the buying side of
the product market.
D.businesses are on the buying side of the product market and on the selling side of the
resource market.
20) Economic rent refers to the price paid for land and other natural resources that:
A.are fixed in total supply.
B.vary directly with their market prices.
C.vary inversely with their market prices.
D.are available in nearly unlimited quantities.