1)
Refer to the diagram. Assuming equilibrium price P1, producer surplus is represented
by areas:
A.a + b.
B.a + b + c + d.
C.c + d.
D.a + c.
2)
Refer to the table and graph. Suppose that the price of X falls from $2 to $1, while the
price of Y remains at $4. Which of the following represents the demand curve for X if
the consumer has money income of $10 to spend on X and Y?
A.D1
B.D2
C.D3
D.D4
3) Other things equal, the greater the degree of complementarity between potential
immigrants and native-born workers, the:
A.lower the optimal quantity of immigrants.
B.lower the marginal benefit of additional immigrants.
C.greater the marginal cost of additional immigrants.
D.greater the optimal quantity of immigrants.
4)
If a minimum wage is set at W, what will happen to employment in the monopsonistic
labor market shown in the diagram above?
A.Employment will decrease
B.Employment will increase
C.Employment will stay the same
D.Employment may increase but usually it tends to stay the same
5) In considering yen and dollars, when the dollar rate of exchange for the yen rises:
A.the yen rate of exchange for the dollar will fall.
B.the yen rate of exchange for the dollar will also rise.
C.the yen rate of exchange for the dollar may either fall or rise.
D.U.S. net exports to Japan will fall.
6) Autos and chemicals are in million of units in the following production possibilities
tables:
Refer to the tables above. Suppose that each nation specialized in producing the product
for which it has a comparative advantage, and the terms of trade were set at 3 units of
chemicals for 1 unit of autos. In this case, Germany could obtain and consume a
maximum combination of 8 million units of autos and:
A.12 million units of chemicals
B.24 million units of chemicals
C.36 million units of chemicals
D.48 million units of chemicals
7) The equilibrium price and quantity in a market usually produce allocative efficiency
because:
A.all consumers who want the good are satisfied.
B.marginal benefit and marginal cost are equal at that point.
C.equilibrium ensures an equitable distribution of output.
D.the excess of goods produced at equilibrium guarantees that all will have enough.
8) Other things being equal, the wages of clerical workers would tend to decrease if
there was an increase in:
A.The marginal revenue product of clerical workers
B.The minimum entry requirements for clerical work
C.The period of training required for clerical work
D.Nonmonetary benefits available to clerical workers
9) A nation that devotes more of its resources to the production of capital goods is likely
to:
A.Cause its production possibilities curve to shift outward
B.Cause its production possibilities curve to shift inward
C.Increase the slope of its production possibilities curve
D.Decrease the slope of its production possibilities curve
10) Describe three other well-publicized provisions of the PPACA.