1) The best example of an industrial union is the:
A.United Association of Plumbers and Pipefitters
B.International Brotherhood of Electrical Workers
C.American Medical Association
D.United Auto Workers
2)
Which of the following groups does not belong with the others?
A.Permanent residents
B.Green-card recipients
C.Temporary immigrants
D.Overstaying aliens
3) Transfer payments are about ____ percent of U.S. domestic output (as of 2012).
A.35
B.8
C.15
D.22
4) The “invisible hand” concept refers to the:
A.Guiding function of prices in a market system
B.Implicit influence that the government has on the actions of firms
C.Regulatory structure that markets must operate in
D.Underlying money flows that promote the trading of goods and services
5) Which nation had the largest share of world exports in 2011?
A.Japan
B.Germany
C.China
D.United States
6) Answer the question on the basis of the following balance of payments data for the
hypothetical nation of Econland. All figures are in billions of dollars.
(1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland’s balance of trade in goods and services shows a:
A.Net inflow of payments of $109 billion
B.Net outflow of payments of $109 billion
C.Net inflow of payments of $108 billion
D.Net outflow of payments of $108 billion
7)
Refer to the above graph. Assume the market for this product started out at the
intersection of D2 and S1. Then supply shifted from S1 to S2 due to an excise tax
imposed on the product. If demand subsequently shifts from D2 to D1, then which of
the following will decrease?
A.The tax per unit of the product
B.The tax revenue
C.The deadweight loss due to the tax
D.The portion of the tax per unit that is shouldered by the buyers
8)
Refer to the diagrams. The solid lines are production possibilities curves; the dashed
lines are trading possibilities curves. The data contained in the production possibilities
curves are based on the assumption of:
A.imperfect substitutability of resources between beer and pizza production.
B.constant costs.
C.decreasing costs.
D.increasing costs.
9) Medicaid:
A.helps finance medical expenses for those participating in the TANF and
Supplemental Security Income programs.
B.has been abandoned in favor of privately provided medical insurance.
C.is a program of medical insurance for the aged and retired.
D.is a compulsory national health insurance program that only covers preventative
medical services.
10) A purely competitive firm’s short-run supply curve is:
A.perfectly elastic at the minimum average total cost.
B.upsloping and equal to the portion of the marginal cost curve that lies above the
average variable cost curve.
C.upsloping and equal to the portion of the marginal cost curve that lies above the
average total cost curve.
D.upsloping only when the industry has constant costs.
11) In 2007, approximately what percentage of people in the United States with private
health insurance received it as an employer-provided benefit?
A.35
B.50
C.88
D.95
12) In recent years, the United States has:
A.exported more services abroad than it has imported.
B.had a small goods trade surplus with Japan.
C.had a large goods trade surplus with the rest of the world.
D.maintained an overall trade surplus (goods and services combined) with the rest of
the world.
13) Answer the question on the basis of the following production possibilities tables for
two countries, North Cantina and South Cantina:
Refer to the tables. Suppose that North Cantina is producing 2 units of capital goods
and 17 units of consumer goods while South Cantina is producing 2 units of capital
goods and 21 units of consumer goods. We can conclude that:
A.North Cantina is fully and efficiently using its resources, but South Cantina is not.
B.South Cantina is fully and efficiently using its resources, but North Cantina is not.
C.neither South Cantina nor North Cantina is fully and efficiently using its resources.
D.both South Cantina and North Cantina are fully and efficiently using their resources.
14)
Refer to the above graph. If the output level increases from Q2 to Q3, then the:
A.Marginal cost of the product becomes closer to its marginal benefit
B.Marginal cost of the product increases while its marginal benefit decreases
C.Marginal cost of the product decreases while its marginal benefit increases
D.Marginal cost of the product stays constant while its marginal benefit increases
15) Consider a coal mining company that can mine coal this year or next year. As
expected future profits increase, the extraction quantity this year:
A.Increases due to a higher user cost
B.Increases due to a lower user cost
C.Decreases due to a higher user cost
D.Decreases due to a lower user cost
16) Assume that a government is considering a new social program and may choose to
include in this program any number of four progressively larger projects. The marginal
cost and the marginal benefits of each of the four projects are given in the table.
Refer to the above table and information. What is the net benefit of project D?
A.$1 billion
B.$3 billion
C.$4 billion
D.$20 billion
17) One of the important contributions of behavioral economics is the focus on how
people make decisions involving:
A.Goods and services
B.Inputs and outputs
C.Good things and bad things
D.Prices and money
18) Population expansion can impede economic development for the following reasons,
except:
A.Reduced saving and investment rates
B.Reduced productivity of labor
C.Larger supply of labor
D.Contribution to urban congestion and problems
19) The development of additive manufacturing technology (3-D printers) is expected
to lower prices by doing which of the following?
A.Reducing the cost of producing blueprints for manufactured goods.
B.Promoting greater economies of scale in manufacturing.
C.Reducing the demand for manufactured goods.
D.Reducing both large fixed set-up costs and transportation costs.