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1) Which of the following is mainly involved in social regulation?
A.The Social Security Administration
B.The Federal Communications Commission
C.The Food and Drug Administration
D.The Interstate Commerce Commission
2) Which of the following DVC policies is not likely to increase DVC economic
growth?
A.Privatizing state industries.
B.Controlling population growth.
C.Restricting direct foreign investment from abroad.
D.Building human capital.
3) If one worker can pick $30 worth of grapes and two workers together can pick $50
worth of grapes, the:
A.marginal revenue product of each worker is $25.
B.marginal revenue product of the first worker is $20.
C.marginal revenue product of the second worker is $20.
D.data given do not permit the determination of the marginal revenue product of either
worker.
4) Research studies indicate that:
A.U.S. producers gain more from tariffs than U.S. consumers lose.
B.the costs of trade restrictions are proportionately higher for high-income groups than
for low-income groups.
C.the revenue from tariffs equals the total cost that tariffs impose on consumers.
D.U.S. consumers lose more from tariffs than U.S. producers gain.
5) The following are supply factors in the health care market, except:
A.Number of physicians and nurses
B.Productivity of health care workers
C.Medical technology
D.Health-care insurance
6) In moving along a supply curve, which of the following is not held constant?
A.The number of firms producing this good.
B.Expectations about the future price of the product.
C.Techniques used in producing this product.
D.The price of the product for which the supply curve is relevant.
7) Compared to a purely competitive firm, a monopsonist will pay:
A.A higher wage rate to its workers
B.Lower wages but hire more workers than the purely competitive firm
C.Lower wage rates and hire fewer workers than the purely competitive firm
D.Lower wages while hiring the same quantity of workers as the purely competitive
firm
8)
Refer to the diagram. If this industry is comprised of only one seller, the
profit-maximizing price and quantity will be:
A.P3 and Q3.
B.P1 and Q3.
C.P2 and Q2.
D.indeterminate on the basis of the information given.
9) The 1968 prediction of Paul Ehrlich proved to be wrong because population growth:
A.Slowed dramatically as standards of living decreased
B.Slowed dramatically as standards of living increased
C.Rose dramatically as standards of living decreased
D.Rose dramatically as standards of living increased
10)
Refer to the graph. Diminishing marginal returns are reflected in:
A.the shift of the short-run average total cost curve from ATC2 to ATC1.
B.a move along short-run average total cost curve ATC2 from point e to point f.
C.a move along short-run average total cost curve ATC1 from point b to point a.
D.the shift of the short-run average total cost curve from ATC1 to ATC2.
11)
Assumptions: (1) the labor force is comprised of 9 million men and 9 million women
workers; (2) the economy has 3 occupations, X, Y, and Z, each having identical demand
curves for labor; (3) men and women workers are homogeneous with respect to their
labor-market capabilities; (4) women are discriminated against by being excluded from
occupations X and Y and are confined to Z; and (5) aside from discrimination, the
economy is competitive, and workers seek to maximize their earnings.
Refer to the diagram and list of assumptions. Under these circumstances 9 million
women will be employed in occupation Z:
A.5 million men in X, and 4 million men in Y.
B.3 million men in X, and 6 million men in Y.
C.6 million men in X, and 3 million men in Y.
D.and 4.5 million men each in occupations X and Y.
12) A monopoly is most likely to emerge and be sustained when:
A.Output demand is relatively elastic
B.Firms have U-shaped, average-total-cost curves
C.Fixed capital costs are small relative to total costs
D.Economies of scale are large relative to market demand
