1) Which of the following is not a reason why government may play a key role in the
early stage of economic development in developing nations?
A.The infrastructure provided by government
B.The abundance of entrepreneurs who need to be regulated
C.The need to encourage saving and investment in the economy
D.The provision of law and order so that commerce can flourish
2) In 2012, the capital and financial account in the U.S. balance of payments was in:
A.deficit, and smaller than the current account deficit.
B.surplus, and equal to the current account deficit.
C.balance, with no deficit or surplus.
D.surplus, and smaller than the current account deficit.
3)
The diagram suggests that:
A.when marginal product is zero, total product is at a minimum.
B.when marginal product lies above average product, average product is rising.
C.when marginal product lies below average product, average product is rising.
D.when total product is at a maximum, so are marginal product and average product.
4) A leftward shift of a product supply curve might be caused by:
A.an improvement in the relevant technique of production.
B.a decline in the prices of needed inputs.
C.an increase in consumer incomes.
D.some firms leaving an industry.
5) The table shows the relationship between total cost and output for a firm.
The firm has a U-shaped:
A.Total cost curve
B.Marginal cost curve
C.Average fixed cost curve
D.Total variable cost curve
6) When you see someone trying to “multi-task” despite mounting evidence that
multi-tasking is actually inefficient, this illustrates the:
A.Confirmation bias
B.Framing effect
C.Hindsight bias
D.Availability heuristic
7) A health care organization that contracts with employers to provide health insurance
to their workers, and hires doctors and other groups to provide health care for the
workers who are insured is a:
A.Preferred provider organization
B.Health maintenance organization
C.Diagnosis-related group system
D.Regional health alliance
8) The ability-to-pay principle of taxation:
A.has been declared unconstitutional because it deprives individuals of property
without due process of law.
B.suggests that people should pay taxes in proportion to the benefits they derive from
public goods and services.
C.suggests that taxes should vary directly with people’s income and wealth.
D.suggests that taxes should vary inversely with people’s income and wealth.
9) Answer the question on the basis of the following cost data:
Refer to the data. The marginal cost of producing the sixth unit of output is:
A.$24.
B.$12.
C.$16.
D.$8.
10) A supply curve that is parallel to the horizontal axis suggests that:
A.the industry is organized monopolistically.
B.the relationship between price and quantity supplied is inverse.
C.a change in demand will change price in the same direction.
D.a change in demand will change the equilibrium quantity but not price.
11) A firm’s labor input, total output of labor, and product price schedules are given
below. Labor is the only variable input.
Refer to the above table and information. What is the marginal revenue product of the
fifth worker?
A.$6
B.$7
C.$8
D.$9
12) Immigrants tend to choose countries closer to their country of origin because:
A.bordering countries always have high wage rates.
B.there are fewer beaten paths to nearby countries, and therefore better prospects of
finding a good job.
C.neighboring countries usually speak the same language.
D.migration costs tend to be directly related to distance from the country of origin.
13) The labor demand curve of a firm:
A.will shift to the left if the price of the product the labor is producing falls.
B.is perfectly elastic if the firm is selling its product in a purely competitive market.
C.reflects a direct relationship between the number of workers hired and the money
wage rate.
D.is the same as its marginal product curve.
14) According to the inverted-U theory, R&D expenditures as a percentage of sales tend
to be relatively low in:
A.Low-concentration industries only
B.High-concentration industries only
C.Low and high-concentration industries
D.Low to middle-concentration industries
15) Inefficiencies associated with majority voting may get resolved through:
A.Using the median-voter model
B.Bureaucratic inefficiency
C.The paradox of voting
D.Political logrolling
16) Which of the following is not a precondition for price discrimination?
A.The commodity involved must be a durable good.
B.The good or service cannot be profitably resold by original buyers.
C.The seller must be able to segment the market, that is, to distinguish buyers with
different elasticities of demand.
D.The seller must possess some degree of monopoly power.
17) The following table is for a purely competitive market for resources.
Refer to the above table. At a wage rate of $23 per worker, the firm will choose to
employ:
A.2 workers
B.3 workers
C.4 workers
D.5 workers
18) The four factors of production are:
A.land, labor, capital, and money.
B.land, labor, capital, and entrepreneurial ability.
C.labor, capital, technology, and entrepreneurial ability.
D.labor, capital, entrepreneurial ability, and money.
19) A low concentration ratio means that:
A.There is a low probability of entering the industry
B.There is a low probability of success in the industry
C.Each firm accounts for a small market share of the industry
D.Each firm accounts for a large market share of the industry