1) The rent paid for the pasture land used to graze cattle would increase if:
A.the productivity of the land increased.
B.people decided to consume more beef.
C.oil deposits were discovered on the land.
D.any of these occurred.
2) In 2011, the official poverty line for a household of four in the United States was:
A.$22,891.
B.$29,494.
C.$11,702.
D.$26,803.
3)
Refer to the graph above for an industry. If the industry were purely competitive, the
market price would be:
A.lower than $8
B.$8
C.$14
D.$16
4) Assume that Tonya consumes only two products, pizza and potato chips, out of a
given budget. Both are normal goods for Tonya. If the price of pizza decreases, then
Tonya’s consumption of pizza will:
A.Decrease due to the income effect
B.Decrease due to the substitution effect
C.Increase due to the income effect
D.Increase due to the law of diminishing marginal utility
5)
Refer to the figure above. The Gini ratio would be 0 for which curve?
A.a
B.b
C.c
D.d
6) If the exchange rate is $1 = 0.7841 euro, then a French DVD priced at 20 euros
would cost to an American buyer (excluding taxes and other fees):
A.$15.68
B.$20.78
C.$25.51
D.$27.84
7) When the distribution of income is adjusted for noncash transfers, the income
distribution shows:
A.Perfect equality
B.Greater equality
C.Greater inequality
D.Little, if any, change
8) Because the demand for agricultural products is price-inelastic, price support
programs tend to:
A.Increase farm income
B.Decrease farm income
C.Have no effect upon farm income
D.Cause farm incomes to fluctuate more than they would without such programs
9)
Which of the given nations would be middle-income developing countries (DVCs),
according to the World Bank?
A.Country E only.
B.Countries A, D, and E.
C.Countries D and E.
D.Country D only.
10) During the period 2002-2009, U.S. trade deficits:
A.Increased from 2002 to 2006 and increased even faster in the recession of 2007-2009
B.Initially decreased, but then increased significantly in the recession of 2007-2009
C.Increased from 2002 to 2006, but then decreased in the recession of 2007-2009
D.Decreased throughout the entire decade
11) When a dominant firm quickly copies the new product innovation of a smaller firm
so that it is the next firm to make the innovation, it is following a:
A.Venture capital strategy
B.Retained earning strategy
C.Fast-second strategy
D.Start-up strategy
12) Public choice economists hold that politicians will:
A.favor programs entailing immediate and clear-cut costs and vaguely defined or
deferred benefits.
B.follow policies leading to an optimal allocation of resources between public and
private sectors.
C.favor programs entailing immediate and clear-cut benefits and vaguely defined or
deferred costs.
D.objectively weigh the costs and benefits of various government programs and vote
accordingly.
13) Which factor will increase the demand for loanable funds?
A.A change in the tax law to exempt savings from taxation
B.Expansion of social insurance to cover more fully the cost of retirement
C.A general business recession that produces high rates of unemployment
D.A technological advance that increases returns on investments
14) The exports of the DVCs consist largely of:
A.high-technology goods.
B.raw materials and farm products.
C.manufactured goods.
D.services and financial capital.
15) Which of the following statements concerning the relationships between total
product (TP), average product (AP), and marginal product (MP) is not correct?
A.AP continues to rise so long as TP is rising.
B.AP reaches a maximum before TP reaches a maximum.
C.TP reaches a maximum when the MP of the variable input becomes zero.
D.MP cuts AP at the maximum AP.
16) When a competitive market achieves allocative efficiency, it implies that:
A.The marginal benefit of having the product is greater than the marginal cost
B.The buyers are getting the maximum consumer surplus from the product
C.The combined consumer and producer surplus is maximized
D.The quantity demanded is lower than the quantity supplied
17)
From a strictly economic perspective, immigration should be:
A.Expanded until its marginal benefits equal its marginal costs
B.Expanded until its total benefits equal its total costs
C.Expanded as long as its marginal costs exceed its marginal costs
D.Reduced if its marginal benefits exceed its marginal costs