1) The largest budgetary expense for a typical state or local government is
a.public order and safety.
b.welfare.
c.highways.
d.education.
2) The imposition of a tariff on imported wine will increase the domestic price of wine,
decrease the quantity of wine imported, and increase the quantity of wine produced
domestically.
a.True
b.False
3) Table 12-1
Assume that the price of a weekend ski pass is $45 and that the price reflects the actual
unit cost of providing a weekend of skiing. Suppose the government imposes a tax of
$12 on skiing, which raises the price of a weekend ski pass to $57. What is the value of
the surplus that accrues to all four skiers from their weekend trip?
a.$41.
b.$95.
c.$144.
d.$185.
4) Which of the following statements is correct?
a.If duopolists successfully collude, then their combined output will be equal to the
output that would be observed if the market were a monopoly.
b.Although the logic of selfinterest decreases a duopoly’s price below the monopoly
price, it does not push the
duopolists to reach the competitive price.
c.Although the logic of selfinterest increases a duopoly’s level of output above the
monopoly level, it does not
push the duopolists to reach the competitive level.
d.All of the above are correct.
5) Uzbekistan’s Production Possibilities FrontierAzerbaijan’s Production
Possibilities Frontier
If the production possibilities frontiers shown are each for two days of production, then
which of the following combinations of bolts and nails could Uzbekistan and
Azerbaijan together make in a given 2- day production period?
a.12 bolts and 120 nails
b.24 bolts and 96 nails
c.38 bolts and 50 nails
d.44 bolts and 24 nails
6)
Using the midpoint method, demand is unit elastic between prices of
a. $20 and $40.
b. $40 and$50.
c. $40 and$60.
d. $50 and$70.
7) Table 20-1
The following table shows the distribution of income in Marysville.
Refer to Table 20-1. If the poverty line were $23,021, what would be the poverty rate?
a.less than 25%
b.between 25% and 50%
c.between 50% and 75%
d.There is insufficient information to answer this question.
8) Figure 21-3
In each case, the budget constraint moves from BC-1 to BC-2.
Refer to Figure 21-3. Which of the graphs in the figure reflects a decrease in the price
of good Y only?
a.graph a
b.graph b
c.graph c
d.graph d
9) Assume that England and Spain can switch between producing cheese and producing
bread at a constant rate.
The opportunity cost of 1 unit of cheese for England is
a.1/4 unit of bread.
b.1 hour of labor.
c.4 units of bread.
d.4 hours of labor.
10) Which of the following is an example of an excise tax?
a.a tax on the wages that a firm pays its workers
b.a tax on tobacco
c.a tax on corporate profits
d.the portion of federal income taxes earmarked to pay for Social Security and
Medicare
11) Arturo’s Production Possibilities FrontierDina’s Production Possibilities
Frontier