1) an example of a public good is:
a.a movie theater.
b.a freight train.
c.the war on terrorism.
d.disneyland.
2) if a nondiscriminating imperfectly competitive firm is selling its 100th unit of output
for $35, its marginal revenue:
a.may be either greater or less than $35.
b.will also be $35.
c.will be less than $35.
d.will be greater than $35.
3) Power plants with the lowest operating costs tend to:
A.have the lowest fixed costs in terms of construction.
B.have the highest fixed costs in terms of construction.
C.operate on the smallest scale of energy production.
D.generate the cleanest energy.
4)
Refer to the above data. At the profit maximizing level of employment, this firm’s:
A.MRP will exceed its MRC.
B.MRP will equal its MRC.
C.MRP will be less than its MRC.
D.MRP will be zero.
5) If in the market for money the quantity of money demanded exceeds the money
supply, the interest rate will:
A.fall, causing households and businesses to hold less money.
B.rise, causing households and businesses to hold less money.
C.rise, causing households and businesses to hold more money.
D.fall, causing households and businesses to hold more money.
6) If the exchange rate between the U.S. dollar and the Japanese yen is $1 = 200 yen,
then the dollar price of yen is:
A.$.005.
B.$.05.
C.$.50.
D.$5.
7) which of the following is a true statement?
a.the united states has the world’s largest ratio of exports to gdp.
b.the united states is almost entirely dependent on other countries in obtaining items
such as silk, nickel, tin, and coffee.
c.u.s. exports to china greatly exceed u.s. imports from china.
d.since 1947 the united states has accounted for a rising percentage of total world trade.
8) the distribution of income among individual households is known as:
a.income differentials.
b.the personal distribution of income.
c.the functional distribution of income.
d.the concentration ratio.
9) Which of the following would move the Lorenz curve closer to the diagonal?
A.a 20 percent boost in Social Security retirement benefits
B.an increase in payroll taxes
C.a reduction in the progressiveness of the Federal personal income tax
D.the elimination of the TANF program
10)
refer to the above table. in relation to column (3), a change from column (4) to column
(5) would most likely be caused by:
a.government placing an excise tax on the good.
b.an improvement in production technology.
c.an increase in consumer income.
d.an increase in input prices.
11) the personal distribution of income in the united states is such that the richest fifth
receives about _____ percent of personal income.
a.30
b.40
c.50
d.60