1) The following are commonly-used arguments for protection against imports, except:
A.Self-sufficiency and diversification-for-stability
B.Protection against dumping
C.Infant industry protection
D.Price- and profit-maintenance
2) The marginal revenue product schedule is:
A.the same whether the firm is selling in a purely competitive or imperfectly
competitive market.
B.the firm’s resource demand schedule.
C.the firm’s resource supply schedule.
D.upsloping.
3) When the ultimatum game is played for larger rather than smaller amounts of money,
behavioral economists have found that when the proposed splits are very uneven:
A.responders are much more likely to accept the offer because of the amount of money
involved.
B.responders are no more likely to accept the offer if they consider the split to be unfair.
C.responders are much less likely to accept the offer because their sense of unfairness is
heightened with larger amounts of money.
D.responders will accept offers at a higher rate but will exact greater emotional
penalties on the proposer.
4) Technological advance is a three-step process of:
A.Product development, production, and marketing
B.Creative destruction, start-ups, and patenting
C.Breakthrough, consolidation, and distribution
D.Invention, innovation, and diffusion
5)
Refer to the figure in which S is the before-tax supply curve and St is the supply curve
after an excise tax is imposed. The burden of this tax is borne:
A.equally by consumers and producers.
B.most heavily by consumers.
C.most heavily by producers.
D.only by consumers.
6) A craft union attempts to increase wage rates by:
A.equating the MRP and the MRC curves.
B.shifting the labor supply curve to the left.
C.shifting the labor supply curve to the right.
D.shifting the MRP curve to the right.
7) A firm produces and sells two goods, A and B. Good A is known to have many close
substitutes; good B makes up a significant portion of most families’ budgets. A price
increase for each good would most likely cause total revenues from good A to:
A.Increase and total revenues from good B to decrease
B.Increase and total revenues from good B to increase
C.Decrease and total revenues from good B to increase
D.Decrease and total revenues from good B to decrease
8) Answer the question on the basis of the data given in the following production
possibilities table:
Refer to the table. If the economy is producing at production alternative C, the
opportunity cost of the tenth unit of consumer goods will be:
A.4 units of capital goods.
B.2 units of capital goods.
C.3 units of capital goods.
D.1/3 of a unit of capital goods.
9) Senator A agrees to vote for Senator K’s state project in exchange for Senator K
voting for Senator A’s state project. This is an example of:
A.logrolling.
B.the paradox of voting.
C.the principal-agent problem.
D.the median voter model.
10)
Refer to the above supply and demand graph of Product X. What would happen if the
government taxed the producers of this product because it has negative externalities in
production?
A.Supply would increase
B.Demand would decrease
C.Supply would decrease
D.Price would increase
11) The exchange rate system currently used by the industrially advanced nations is:
A.the gold standard.
B.the Bretton Woods system.
C.the managed float.
D.a fixed rate system.
12) If X is a normal good, a rise in money income will shift the:
A.supply curve for X to the left.
B.supply curve for X to the right.
C.demand curve for X to the left.
D.demand curve for X to the right.
13) Consider the following payoff matrix in which the numbers indicate the profit in
millions of dollars for a duopoly based either on a high-price or a low-price strategy.
(a)What will be the result when each firm chooses a high-price strategy?
(b)What will be the result when Firm A chooses a low-price strategy while Firm B
maintains a high-price strategy?
(c)What will be the result when Firm B chooses a low-price strategy while Firm A
maintains a high-price strategy?
(d)What will be the result when each firm chooses a low-price strategy?
(e)What two conclusions can you draw about collusion?
14) Which of the following correctly orders, highest to lowest, the relative magnitudes
of U.S. spending by businesses on components of R&D?
A.Invention, basic research, innovation.
B.Invention, innovation, basic research.
C.Innovation, invention, basic research.
D.Basic research, invention, innovation.