1) Between 1995 and 2007 in the United States:
A.average U.S. household wealth increased and median household wealth declined.
B.average U.S. household wealth declined and median household wealth increased.
C.both average and median U.S. household wealth declined.
D.both average and median U.S. household wealth increased.
2) If marginal cost is:
A.falling, then average total cost must also be falling.
B.rising, then average total cost must also be rising.
C.rising, then average total cost could be either falling or rising.
D.falling, then average total cost could be either falling or rising.
3) Which of the following countries had the highest per capita income in 2010?
A.China
B.United States
C.Japan
D.Germany
4) Which of the following is a determinant of supply?
A.Tastes and preferences
B.Price of a complementary good
C.Consumer income
D.Product taxes and subsidies
5) If the United States government were to impose a quota on wristwatches imported
from Switzerland, then the:
A.Price of wristwatches in the United States would decrease and total quantity
consumed (domestic and imported) will increase
B.Prices of wristwatches in Switzerland would rise and that’s how Switzerland would
be hurt by the quota
C.Price of wristwatches in the United States would remain the same, but the quantity
will fall as imports fall
D.Total quantity of wristwatches (domestic and imported) purchased would decline as
prices rise
6) In comparing the changes in TC and TVC associated with an additional unit of
output, we find that:
A.the change in TVC is equal to MC, while the change in TC is equal to TFC.
B.the change in TC exceeds the change in TVC.
C.the change in TVC exceeds the change in TC.
D.both TC and TVC are equal to MC.
7) In which price range of the accompanying demand schedule is demand elastic?
A.$4-$3.
B.$3-$2.
C.$2-$1.
D.Below $1.
8)
Refer to the above graphs. (Assume that the pre-migration labor force in Country A is 100
and that it is 150 in country B.) What part of domestic output in country B is the total wage
bill before and after the immigration?
A.$1,700M before and $2,250M after
B.$2,250M before and $1,700M after
C.$1,500M before and $2,250M after
D.$1,700M before and $1,500M after
9) The total fertility rate necessary to keep the population constant is approximately
equal to:
A.1.0
B.1.5
C.2.1
D.3.0
10) The following diagram is a flexible exchange market for foreign currency:
Refer to the diagram. Other things equal, a leftward shift of the demand curve would:
A.depreciate the dollar.
B.appreciate the euro.
C.reduce the equilibrium quantity of euros.
D.cause a surplus of euros.
11) An emission fee levied against polluting firms will tend to shift the:
A.Supply curve of the firms to the left
B.Supply curve of the firms to the right
C.Demand curve for the product to the left
D.Demand curve for the product to the right
12) Models that analyze how labor unions attempt to raise wage rates include the
following, except:
A.Demand-enhancement model
B.Exclusive union model
C.Industrial union model
D.Credit union model
13) Which one of the following is concerned with industrial regulation, as distinct from
social regulation?
A.Occupational Safety and Health Administration.
B.Consumer Products Safety Commission.
C.Federal Communications Commission.
D.Environmental Protection Agency.
14) If the property rights for forests are clear and enforced, then:
A.They will become common property
B.Governments will not be able to overtax them
C.Owners have profit incentives to harvest slowly over time
D.The logging of the forest will increase at an unsustainable rate
15) A purely competitive firm should produce in the short run if its total revenue is
sufficient to cover its:
A.total variable costs.
B.total costs.
C.total fixed costs.
D.marginal costs.
16)
Refer to the information and assume the stadium capacity is 5,000. If the Mudhens’
management charges $7 per ticket:
A.some fans who want to see the game will find that tickets are not available.
B.there will be 2,000 empty seats.
C.there will be 1,000 empty seats.
D.the game will be sold out.
17) If a factor of production has no production cost and has a fixed supply, then
payments to that factor constitute what economists call:
A.Abnormal profits
B.Economic rent
C.Normal profits
D.Interest payments
18)
Assumptions: (1) The demand for labor in Alphania and Betania are as shown by DA
and DB, respectively; (2) Alphania’s native labor force is F and that of Betania is g; (3)
wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in
both countries.
Refer to the given diagram and assumptions. If migration is costless and unimpeded, the
absolute wage bill will necessarily:
A.increase in Alphania if its labor demand curve is elastic.
B.increase in Betania if its labor demand curve is elastic.
C.decrease in Betania.
D.increase in Betania.
19) Which of the following groups has the highest poverty rate?
A.Age 65 or over.
B.Foreign-born (not citizens).
C.Hispanics.
D.Female-headed households.
20) The increased use of plastic bags instead of paper bags in grocery stores and retail
shops is an example of:
A.Overt collusion
B.Covert collusion
C.Import competition
D.Interindustry competition