1)
Illegal immigrants make up about what percent of all agricultural workers in the U.S.?
A.10%
B.5%
C.40%
D.25%
2)
Refer to the above table. The average variable cost of producing 35 units of output is:
A.$6.00
B.$7.43
C.$4.57
D.$1.43
3) As it relates to the political process, the principal-agent problem results from the:
A.negative externalities that are created by some policy actions.
B.political rules that encourage elected officials to engage in unethical and illegal
behavior.
C.inconsistency between voters’ interest in programs and politicians’ interest in
reelection.
D.paradox of voting.
4)
Refer to the diagram for athletic shoes. If the current output of shoes is Q3, then:
A.society should produce fewer shoes to achieve the optimal allocation of resources.
B.society should produce more shoes to achieve the optimal allocation of resources.
C.resources are being allocated efficiently to the production of shoes.
D.shoes are more valuable to society than alternative products
5) The reason why people are charged for an additional can of soda they get from a
soda machine, but are not charged for an additional paper taken from a newspaper
dispensing machine, is that the marginal utility of an additional:
A.Soda is close to zero, but the marginal utility of an additional paper diminishes
slowly
B.Soda diminishes slowly, but the marginal utility of an additional paper is close to zero
C.Soda increases by more than that of the newspaper as consumption increases
D.Newspaper increases by more than that of soda as consumption increases
6) Another term often used to refer to family wealth is:
A.Income
B.Net worth
C.Salary and wages
D.Spending
7) Which of the following will not hold true for a competitive firm in long-run
equilibrium?
A.P equals AFC.
B.P equals minimum ATC.
C.MC equals minimum ATC.
D.P equals MC.
8) A company’s extraction cost curve slopes upward to reflect:
A.that marginal extraction costs increase as the company extracts more of the resource.
B.that user costs rise as the company extracts more of the resource.
C.that the price of the nonrenewable resource increases as the amount extracted
increases.
D.all of these.
9) Upon learning that his auto transmission is about to fail, Ray Roma sells his car to an
unsuspecting buyer. This circumstance illustrates the:
A.adverse selection problem.
B.free-rider problem.
C.moral hazard problem.
D.principal-agent problem.
10)
Refer to the above graph. There are diseconomies of scale:
A.From Q1 to Q2
B.From Q2 to Q3
C.From Q3 to Q4
D.After Q4
11) A firm operating in a purely competitive resource market faces a resource supply
curve that is:
A.perfectly inelastic.
B.perfectly elastic.
C.highly inelastic.
D.highly elastic.
12) Suppose that Jane earns $10,000 in year 1 and $15,000 in year 2, while Jim earns
$15,000 in year 1 and $10,000 in year 2. Is there income equality for the two
individuals?
A.The annual data indicate equality, but the two-year data indicate inequality
B.The annual data indicate inequality, but the two-year data indicate equality
C.Both the annual and the two-year data indicate equality
D.Both the annual and the two-year data indicate inequality
13) The horizontal axis of a graph that shows a market demand curve indicates the:
A.Different prices at which various levels of output can be sold
B.Number of consumers who are in the market for this product
C.Various quantities of output at which the market will be cleared
D.Quantities which consumers will be willing and able to buy at various prices