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1) The dollar sum of costs that an insured individual must pay before the insurer begins
to pay would be considered:
A.Copayments
B.Play-or-pay
C.Fee for service
D.Deductibles
2) Which of the following statements applies to the Social Security program?
A.Benefits are paid on the basis of need
B.It provides cash assistance and services to families with dependent children
C.It is financed by payroll taxes on employees and employers
D.Benefit levels vary throughout the nation because the system is administered by the
individual states
3)
Refer to the graph above. The time horizon depicted in the graph:
A.Must be the immediate market period
B.Cannot be the immediate market period
C.Must be the long run, not the short run
D.Can be determined by focusing on the demand curve
4) Answer the question on the basis of the following production possibilities data for
two countries, Alpha and Beta, which have populations of equal size.
Refer to the given data. Assume the production possibilities in Beta double at
alternatives A through E while remaining as shown in the table for Alpha. As a result,
Beta should:
A.continue to specialize in producing chips.
B.continue to specialize in fishing.
C.no longer specialize and trade.
D.specialize both in fishing and in producing chips and sell the surplus to Alpha.
5) Which of the following does not correlate positively with economic growth?
A.Output per capita.
B.Life expectancy.
C.The percentage of the population engaged in agriculture.
D.The literacy rate.
6) The advent of DVDs has virtually demolished the market for videocassettes. This is
an example of:
A.creative destruction.
B.derived demand.
C.capital accumulation.
D.the difference between normal and economic profits.
7) The basic purpose of the other-things-equal assumption is to:
A.allow one to reason about the relationship between variables X and Y without the
intrusion of variable Z.
B.allow one to focus upon micro variables by ignoring macro variables.
C.allow one to focus upon macro variables by ignoring micro variables.
D.determine whether X causes Y or vice versa.
8) Answer the question on the basis of the following domestic supply and demand
schedules for a product. Suppose that the world price of the product is $1.
Refer to the given data. If this nation were entirely closed to international trade,
equilibrium price and quantity would be:
A.$5 and 2 units.
B.$1 and 1 unit.
C.$4 and 4 units.
D.$3 and 7 units.
9)
Refer to the diagram. To maximize profits or minimize losses, this firm should produce:
A.E units and charge price C.
B.E units and charge price A.
C.M units and charge price N.
D.L units and charge price LK.
10)
Refer to the above table. The price of the product being produced by this resource is:
A.$1
B.$2
C.$3
D.$4
11) Illustrate the following by drawing a supply and demand graph for the farm land
market in the appropriate graph spaces below: (a) the subsidies on corn are removed,
lowering the price; (b) a new fertilizer increases the productivity of the land; (c) a new
invention creates rain in dry areas allowing for areas that were previously unable to be
used as farm land to be productive.
12) The table below shows the marginal utility schedules for old product X and new
product Y for a hypothetical consumer. The price of X is $2 and the price of good Y is
$1. The budget of the consumer is $10.
Refer to the above table. If the consumer buys both old product X and new product Y,
how much will the consumer buy of each to maximize utility?
A.2X and 3Y
B.3X and 4Y
C.4X and 3Y
D.4X and 2Y
13) In the short run it is impossible for an expansion of output to increase:
A.average total cost.
B.average fixed cost.
C.marginal cost.
D.average variable cost.
