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1) What was the largest U.S. fishery, in dollar terms, in 2010?
A.Pacific halibut.
B.Lobster.
C.Walleye pollock.
D.Sea scallop.
2) For a monopolistically competitive firm in long-run equilibrium:
A.price will equal marginal cost.
B.price will equal average total cost.
C.marginal revenue will exceed marginal cost.
D.economic profits will be some positive amount.
3)
Refer to the graph above, where Sd and Dd are the domestic supply and demand curves
for a product. The world price of the product is $6. If the market is open to international
trade but there is a tariff of $2 per unit imposed, the total government revenue generated
by the tariff would be:
A.$40
B.$60
C.$80
D.$100
4) Consumers will make a decision to purchase a new product only if it:
A.Has a lower marginal utility per dollar spent than another product
B.Is recommended as a valuable product by other consumers
C.Increases the total utility they obtain from their limited income
D.Can be sold at a lower price than that for a competing product
5) Use the information in the table to answer the questions below.
(a)Complete the information in the columns (3), (5), and (6).
(b)Graph the derived demand curve on the graph provided below. Be sure to label the
axis.
(c)Suppose the equilibrium wage is $21. What is the quantity of workers that will be
employed?
6)
The diagram shows the short-run average total cost curves for five different plant sizes
of a firm. The shape of each individual curve reflects:
A.increasing returns, followed by diminishing returns.
B.economies of scale, followed by diseconomies of scale.
C.constant costs.
D.increasing costs, followed by decreasing costs.
7) The price elasticity of demand of a straight-line demand curve is:
A.elastic in high-price ranges and inelastic in low-price ranges.
B.elastic but does not change at various points on the curve.
C.inelastic but does not change at various points on the curve.
D.1 at all points on the curve.
8)
Refer to the diagram. If price is reduced from P1 to P2, total revenue will:
A.increase by A - C.
B.increase by C - A.
C.decrease by A - C.
D.decrease by C - A.
9) A long-run supply curve that is downward-sloping indicates that the firms' ATC
curves:
A.Shift up when the industry expands
B.Shift down when the industry contracts
C.Shift down when the industry expands
D.Do not shift when the industry contracts
10) A market for human organs (rather than the current volunteer-donor system) would
be expected to:
A.reduce the price of organs.
B.create a surplus of organs.
C.reduce the supply of organs.
D.eliminate the shortage of organs.
11) A firm with fixed costs produces at the lowest point on its U-shaped average
variable cost curve. If it raises output by 1 unit, then average:
A.Fixed cost will increase
B.Total cost will decrease
C.Fixed cost will necessarily be below average variable cost
D.Total cost will be less than average variable cost
12) Foreign aid to the DVCs has been criticized:
A.because it may generate economic dependence on the IACs.
B.because it encourages the centralization of government power over the economy.
C.because government corruption in the DVCs causes aid to be misused.
D.for all of these reasons.
