1) A patent for a new product or a new business process is typically granted for a
hundred years.
2) A total fertility rate of approximately 1.0 will cause each generation to be half as
large as the preceding generation.
3) Rising health care costs have contributed to slower growth in real wages of workers.
4)
Refer to the diagram for a nondiscriminating monopolist. The profit-maximizing price
for this firm is J.
5) Government’s ability to enforce laws and contracts increases private-sector economic
risks.
6) In the taste-for-discrimination model, a prejudiced employer who prefers white
workers and who has a discrimination coefficient of $3/hour would still hire
African-Americans if the market wage rates is $22/hour for white workers and $20/hour
for African-Americans.
7) It is possible for a consumer’s indifference curves to intersect.
8) When corporations use retained earnings to finance the R&D for a new venture the
marginal cost of financing is zero.
9) A purely competitive firm is producing at the point where its marginal cost equals the
price of its product. If the firm increases its output, then total revenue will:
A.Increase and profits will increase
B.Decrease and profits will increase
C.Increase and profits will decrease
D.Decrease and profits will decrease
10) The inelastic demand for agricultural products means that:
A.Large changes in agricultural production result in no change in farm prices and
incomes
B.Small changes in agricultural production result in no change in farm prices and
incomes
C.Large changes in agricultural production result in relatively smaller changes in farm
prices and incomes
D.Small changes in agricultural production result in relatively larger changes in farm
prices and incomes
11) Studies in industrially advanced nations indicate that a 3 percent increase in
incomes will generate a:
A.1 percent increase in the amount of health care demanded
B.1.5 percent increase in the amount of health care demanded
C.3 percent increase in the amount of health care demanded
D.6 percent increase in the amount of health care demanded
12) Frank is purchasing products C and D in utility-maximizing amounts. If the price of
C is $4 and the price of D is $2, then:
A.the marginal utility of D is twice that of C
B.the marginal utility of D is the same as that of C
C.the marginal utility of C is twice that of D
D.the marginal utility of C is four times that of D
13) The view that the antitrust laws need to be strongly enforced to prevent illegal
business behaviors, monopolization of markets, and allocative inefficiency is known as
the:
A.structuralist view of antitrust.
B.behavioralist view of antitrust.
C.laissez-faire perspective on antitrust.
D.active antitrust perspective.
14) Which of these sets of countries has the greatest degree of internal corruption as of
2012, according to Transparency International?
A.Somalia, Afghanistan, and Venezuela.
B.Finland, Denmark, and New Zealand.
C.United States, Greece, and Italy.
D.Mexico, China, and India.
15)
Refer to the above table. The decline in percentage of income received from before
taxes and transfers to after taxes and transfers is greatest for the:
A.Second 20% of households
B.Third 20% of households
C.Fourth 20% of households
D.Highest 20% of households
16) Which of the following is a feature of farm policy present in the Food,
Conservation, and Energy Act of 2008 that was not part of the Freedom to Farm Act of
1996?
A.Direct payments (direct subsidies) based on crops currently grown.
B.Countercyclical payments.
C.Farm buyouts by government.
D.Acreage allotments (restrictions on planting).
17) The table below shows the weekly demand for hamburger in a market where there
are just three buyers.
Refer to the above table. At a price of $6, the weekly market quantity demanded for
hamburger is:
A.17
B.23
C.18
D.24
18)
In the diagram above, suppose the consumer is currently exhausting his or her income
at a point where the marginal rate of substitution of apples for oranges is greater than
5/4. That is, MUA/MU0>5/4. To maximize utility, the consumer should move from
point:
A.a to e
B.b to e
C.c to e
D.d to e
19) 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. If the consumer has money income of $52 and the prices of J and K
are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
A.2 units of J and 7 units of K
B.5 units of J and 5 units of K
C.4 units of J and 5 units of K
D.6 units of J and 3 units of K
20) When economists refer to labor, what type of workers are they referring to?
21) What is the approach that the U.S. Census Bureau uses to estimate the number of
illegal immigrants living in the United States? How many illegal immigrants were
estimated to reside in the United States in 2009?
22) How is elephant preservation affected by property rights?
23) Why is land rent a surplus payment from the perspective of economists?
24) What is a trade war and how can it erupt? What are the consequences?
25) What are the effects of a reciprocity strategy on game outcomes?