1) Capitalist income (corporate profits, interest, and rent) has:
A.declined sharply since 1900 because of the growing strength of labor unions.
B.remained approximately constant in this century.
C.increased significantly because of rising rents.
D.fallen in this century because of the declining importance of corporations.
2) “consumer sovereignty” means that:
a.buyers can dictate the prices at which goods and services will be purchased.
b.advertising is ineffective because consumers already know what they want.
c.buyers control the quality of goods and services through regulatory agencies.
d.buyers determine what will be produced based on their “dollar votes” for the goods
and services offered by sellers.
3) which of the following is a demand-increasing factor in the health care market?
a.rising incomes
b.the aging of the population
c.asymmetric information
d.all of these
4) The Board of Governors of the Federal Reserve has ____ members.
A.5
B.7
C.9
D.14
5) to be officially unemployed a person must:
a.be in the labor force.
b.be 21 years of age or older.
c.have just lost a job.
d.be waiting to be called back from a layoff.
6) Which of the following Gini ratios indicates the highest degree of income inequality?
A.0.78
B.0.65
C.0.29
D.0.42
7) which of the following is a distinguishing feature of a command system?
a.private ownership of all capital.
b.central planning.
c.heavy reliance on markets.
d.wide-spread dispersion of economic power.
8) Which of the following involves the creation of human capital?
A.the XYZ Corporation upgrades the machinery on its assembly line
B.Jones receives apprenticeship training as a carpenter
C.Smith buys 30 shares of common stock
D.a retired person decides to reenter the labor force
9)
refer to the figure above. suppose the graphs represent the demand for use of a local
golf course for which there is no significant competition (it has a local monopoly); p
denotes the price of a round of golf; q is the quantity of rounds ‘sold” each day. if the
left graph represents the demand during weekdays, and the right graph the weekend
demand, this profit-maximizing golf course will earn how much economic profit over
the course of a full seven-day week?
a.$4,200
b.$3,700
c.$3,400
d.$2,700
10) the fact that a purely competitive firm’s total revenue curve is linear and upsloping
to the right implies that:
a.product price increases as output increases.
b.product price decreases as output increases.
c.product price is constant at all levels of output.
d.marginal revenue declines as more output is produced.