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1) Which of the following is least likely to violate the Sherman Act or the Clayton Act?
A.Competitive firms A, B, and C meet and agree to charge a common price.
B.Competitive firms D and E, each with 35 percent market shares, merge into a single
firm.
C.Competitive firms F and G independently charge lower prices to frequent customers
than to occasional customers.
D.Large dominant firm H forces buyers to purchase its product X in order to buy its
popular product Y.
2) Total utility may be determined by:
A.multiplying the marginal utility of the last unit consumed by the number of units
consumed.
B.summing the marginal utilities of each unit consumed.
C.multiplying the marginal utility of the last unit consumed by product price.
D.multiplying the marginal utility of the first unit consumed by the number of units
consumed.
3) All developing countries suffer from a critical shortage of:
A.Land
B.Population
C.Capital goods
D.Government regulation
4) Which of the following would not be expected to occur in a purely competitive
market in long-run equilibrium?
A.Consumer and producer surplus will be minimized.
B.P = MC = lowest ATC.
C.The maximum willingness to pay for the last unit equals the minimum acceptable
price for that unit.
D.We would expect all of these to occur in the long run in a purely competitive market.
5) According to the United Nations, approximately what percentage of the world's
income is received by the richest one-fifth of the world's population?
A.20 percent.
B.30 percent.
C.60 percent.
D.80 percent.
6) Appreciation of the Canadian dollar will:
A.intensify an existing disequilibrium in Canada's balance of payments.
B.make Canada's exports less expensive and its imports more expensive.
C.make Canada's exports more expensive and its imports less expensive.
D.make Canada's exports and imports both more expensive.
7) Answer the question on the basis of the following domestic supply and demand
schedules for a product. Suppose that the world price of the product is $1.
Refer to the given data. The total amount of revenue collected from a $1-per-unit tariff
on this product will be:
A.$22.
B.$8.
C.$7.
D.$14.
8)
Refer to the above supply and demand graph for a public good. If Q1 units of the public
good are produced, then:
A.Users are willing to pay more for the public good than it costs to produce it
B.Users are willing to pay less for the public good than it costs to produce it
C.There is an over-allocation of resources towards producing this public good
D.Allocative efficiency is achieved in the market
9) Countries engaged in international trade specialize in production based on:
A.relative levels of GDP.
B.comparative advantage.
C.relative exchange rates.
D.relative inflation rates.
10) Use the following graph to answer question about the labor resource market faced
by producers of good X:
Refer to the above graph. What will shift D2 to D1?
A.A decrease in the price of a substitute input (if the output effect > substitution effect)
B.An increase in the price of a substitute input (if the substitution effect > output effect)
C.An increase in the price of a substitute input (if the output effect > substitution effect)
D.A decrease in the price of a complementary resource
11) The classic example of a private unregulated monopoly is:
A.Coca Cola
B.Wham-O (Frisbee)
C.General Motors
D.General Electric
