1) The following information: The Fed is going to auction $30 billion in reserves using
the term auction facility. It receives the following bids:
Refer to the above information. As a result of the auction, how much and at what
interest rate will Epsilon bank borrow?
A.$15 billion; 3.5 percent
B.$15 billion; 4 percent
C.$15 billion; 4.5 percent
D.$0; 4 percent (rate charged winning bidders)
2) The following production possibilities data for two countries, Alpha and Beta, which
have populations of equal size.
Refer to the above data. Assume the production possibilities in Beta double at
alternatives A through E while remaining as shown in the table for Alpha. As a result
Beta should:
A.continue to specialize in producing chips.
B.continue to specialize in fishing.
C.no longer specialize and trade.
D.specialize both in fishing and in producing chips and sell the surplus to Alpha.
3) if a legal ceiling price is set above the equilibrium price:
a.a shortage of the product will occur.
b.a surplus of the product will occur.
c.a black market will evolve.
d.neither the equilibrium price nor equilibrium quantity will be affected.
4) Melanie and Oli are competing Pacific Halibut fishers. Both have been allocated
ITQs that limit their catch to 1,000 tons of Pacific Halibut each. Melanie’s cost per ton
is $20; Oli’s cost per ton is $28.
Refer to the information above. If the market price of Pacific Halibut is $40 per ton,
what is the maximum amount Melanie would be willing to pay per ton for Oli’s ITQs?
A.$20.
B.$28.
C.$40.
D.$12.
5) shortages and unmet demand provide opportunities for individuals and firms to profit
under capitalism, but they present no such opportunities under central planning. this
reality represents central planning’s:
a.incentive problem.
b.coordination problem.
c.paradox of value.
d.x-efficiency problem.
6) In the United States in 2006, one million BTUs of energy yielded _______ worth of
goods and services (in year 2000 dollars).
A.$14.6
B.$51.3
C.$84.2
D.$114.3
7)
Refer to the above table, in which the values for columns (2) through (5) are in acres. If
the relevant columns are (1), (2), and (3), land rent will be:
A.$100 per acre.
B.$200 per acre.
C.$300 per acre.
D.$400 per acre.
8) the natural rate of unemployment is:
a.higher than the full-employment rate of unemployment.
b.lower than the full-employment rate of unemployment.
c.that rate of unemployment occurring when the economy is at its potential output.
d.found by dividing total unemployment by the size of the labor force.
9) the following demand and cost data for a pure monopolist:
refer to the above data. the profit-maximizing level of output will be:
a.4 units.
b.7 units.
c.6 units.
d.5 units.
10) approximately what percentage of state spending goes to finance education?
a.36
b.44
c.47
d.53
11) The velocity of money:
A.is defined as the number of times per year the average dollar is spent on final goods
and services.
B.is defined as the multiple by which a final increase in GDP exceeds an initial increase
in spending.
C.is equal to the reciprocal of the monetary multiplier.
D.has been nearly constant during the past several decades.
12) Which of the following is a market imperfection that might explain persistent wage
differentials within an occupation?
A.movement of labor from lower-wage to higher-wage jobs
B.readily available information about job opportunities and pay
C.principal-agent problems
D.discrimination
13) even though local newspapers are very inexpensive, people rarely buy more than
one of them each day. this fact:
a.is an example of irrational behavior.
b.implies that reading should be taught through phonics rather than the whole language
method.
c.contradicts the economic perspective.
d.implies that, for most people, the marginal benefit of reading a second newspaper is
less than the marginal cost.
14) in which of the following industry structures is the entry of new firms the most
difficult?
a.pure monopoly
b.oligopoly
c.monopolistic competition
d.pure competition
15) As pizza topped with barbecue chicken became popular at specialty restaurants,
Pizza Hut introduced a similar pizza. This imitation illustrates:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
16) economists contend that most economic decisions are:
a.random
b.chaotic
c.spontaneous
d.purposeful
17) The Federal Trade Commission:
A.is empowered to file antitrust suits.
B.prohibits interlocking directorates in interstate industries.
C.regulates airline fares.
D.regulates such transportation industries as railroads and trucking.