1) the following information:
refer to the above data. the marginal product of the fourth worker:
a.is 5
b.is 7
c.is 71/2
d.cannot be calculated from the information given.
2) when the percentage change in price is greater than the resulting percentage change
in quantity demanded:
a.a decrease in price will increase total revenue.
b.demand may be either elastic or inelastic.
c.an increase in price will increase total revenue.
d.demand is elastic.
3) the income and substitution effects account for:
a.the upward sloping supply curve.
b.the downward sloping demand curve.
c.movements along a given supply curve.
d.the “other things equal” assumption.
4) Answer the next question(s) using the following budget information for a
hypothetical economy. Assume that all budget surpluses are use to pay down the public
debt.
Refer to the above data. The budget deficit in year 3 is:
A.$175 billion.
B.$3050 billion.
C.$100 billion.
D.$295 billion.
5) What is the relationship between living standards and birthrates?
A.The relationship is negative at low levels of income, but becomes increasingly
positive as incomes rise.
B.They are unrelated.
C.The relationship is positive (directly related).
D.The relationship is negative (inversely related).
6) Other things equal, a reduction in income taxes would:
A.reduce productivity and reduce aggregate supply.
B.increase consumption and increase aggregate demand.
C.increase the supply of money and reduce investment.
D.increase government spending and increase aggregate demand.
7) which of the following persons is most likely to be insured for health care?
a.a minimum-wage teenager working for a fast-food restaurant.
b.a skilled worker employed by a large multinational corporation.
c.an unemployed retail clerk.
d.a part-time groundskeeper for a small manufacturing plant.
8) The market shares of firms in three different industries are listed in the table below.
Use this information to calculate the Herfindahl index for each industry.
(a)Which industry is has the greatest market power? The least?
(b)Based on your findings, is the number of firms in the industry a good predictor of the
competitiveness of an industry? Why or why not?
9) a one-firm industry is known as:
a.monopolistic competition.
b.oligopoly.
c.pure monopoly.
d.pure competition.
10) the unemployment rate of:
a.women greatly exceeds that of men.
b.whites is roughly equal to that of african-americans.
c.white-collar workers exceeds that of blue-collar workers.
d.teenagers is much higher than that of adults.
11) gdp is equal to:
a.c + ig + g + xn.
b.c + ig + g – xn.
c.c + in + g + xn.
d.c + in + g – xn.
12)
Refer to the above diagram for a private closed economy. At the equilibrium level of
GDP the APC and APS:
A.are 5/6 and 1/6 respectively.
B.are equal to the MPC and MPS respectively.
C.are 4/5 and 1/5 respectively.
D.cannot be determined from the information given.