1)
Refer to the diagram. For output level Q, per unit costs of C are:
A.unattainable and imply the inefficient use of resources.
B.unattainable, given resource prices and the current state of technology.
C.attainable, but imply the inefficient use of resources.
D.attainable and imply that resources are being combined efficiently.
2) The total amount of U.S. tax revenue needed to finance the public sector:
A.has been a declining percentage of the domestic output in this century.
B.equals about 40 percent of domestic output.
C.equals about 15 percent of domestic output.
D.is larger today, as a percentage of total output, than in 1960.
3) Preferred provider organizations (PPOs):
A.charge a fixed amount per member, hire many of their own physicians, and provide
health services only to members.
B.require that their members give up the right to file medical malpractice suits.
C.are illegal in several states.
D.require physicians and hospitals to provide discounted prices for their services as a
condition for being included in the insurance plan.
4)
Refer to the diagrams in which figures (a) and (b) show demand curves reflecting the
prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If
the marginal cost of the optimal quantity of this public good is $10, the optimal quantity
must be:
A.1 unit.
B.2 units.
C.3 units.
D.4 units.
5) Relatively rapid U.S. growth between 2002 and 2007 contributed to large U.S. trade
deficits by:
A.increasing U.S. national income, which decreased U.S. exports.
B.reducing real interest rates in the United States.
C.increasing U.S. tax revenues and reducing the federal budget deficit.
D.increasing U.S. national income, which increased U.S. imports.
6) The poorest 20 percent of the world’s population receive what percentage of world
income?
A.Less than 2 percent
B.About 4 percent
C.Around 8 percent
D.Close to 10 percent
7)
Which of the following statements is false?
A.Greater distance reduces the likelihood of migration
B.Greater stocks of human capital result in greater personal productivity and earnings
C.The majority of international migrants move to countries relatively close to their home
countries
D.Implicit costs of migrating are not affected by distance
8) One of the taxes included the Patient Protection and Affordable Care Act (PPACA) to
generate revenue is a tax on junk food.
9) Assume a purely competitive firm is maximizing profit at some output at which
long-run average total cost is at a minimum. Then:
A.the firm is earning an economic profit.
B.there is no tendency for the firm’s industry to expand or contract.
C.allocative but not productive efficiency is being achieved.
D.other firms will enter this industry.
10)
Refer to the above graph. It shows short-run cost curves for a competitive firm. At what
minimum price would the firm be willing to product some output in the short run?
A.P1
B.P2
C.P3
D.P4
11) In 2011, the highest quintile of households in the U.S. income distribution received
about:
A.43 percent of total income.
B.55 percent of total income.
C.62 percent of total income.
D.51 percent of total income.
12) The following table contains hypothetical data for the 2012 U.S. balance of
payments. Answer the question on the basis of this information. All figures are in
billions of dollars.
Refer to the given data. The United States has a balance of goods:
A.deficit of $10 billion.
B.surplus of $30 billion.
C.deficit of $30 billion.
D.surplus of $20 billion.
13) Answer the question on the basis of the following two schedules, which show the
amounts of additional satisfaction (marginal utility) that a consumer would get from
successive quantities of products J and K.
Refer to the data. What level of total utility is realized from the equilibrium
combination of J and K, if the consumer has a money income of $52 and the prices of J
and K are $8 and $4 respectively?
A.156 utils
B.124 utils
C.276 utils
D.36 utils
14) The marginal benefit to society of reducing pollution declines with increases in
pollution abatement because of the law of:
A.increasing costs.
B.diminishing returns.
C.diminishing marginal utility.
D.conservation of matter and energy.
15) Answer the question on the basis of the following demand and cost data for a
specific firm:
Refer to the data. If columns (1) and (3) of the demand data shown are this firm’s
demand schedule, the profit-maximizing level of output will be:
A.12 units.
B.8 units.
C.10 units.
D.9 units.
16) The absolute income gap between the IACs and the DVCs has:
A.remained constant over time.
B.increased over time.
C.decreased over time.
D.increased in nominal terms but decreased in real terms.
17) Jack and Jill have identical skills and training, but Jill earns higher wages in her job.
Which of the following reasons would best explain why Jill earns more than Jack?
A.Jack has a chronic illness and would lose health care coverage if he changed jobs.
B.Jill suffers from gender discrimination in the workplace.
C.Jack has better access to information about available jobs in his field.
D.Jill is reluctant to move to a new city because she wants to live near family.
18) Oil wells and seasonal resorts will often shut down temporarily because:
A.prices for their output temporarily fall below their average variable costs of
production.
B.fixed costs temporarily rise, making production unprofitable.
C.variable costs for pumping oil and operating resorts fluctuate significantly.
D.government regulations require seasonal shutdowns for maintenance purposes.
19) Which of the following is not a major criticism of social regulation?
A.It is anticompetitive
B.It will increase product prices
C.It will increase the rate of innovation in the economy
D.It will impose a larger burden on small firms compared to large firms