1) Answer the question on the basis of the following four tax schedules for the given
base of taxable income.
Which of the above tax schedules is a progressive tax schedule throughout?
A.A
B.B
C.C
D.D
2) The two main characteristics of a public good are:
A.production at constant marginal cost and rising demand.
B.nonexcludability and production at rising marginal cost.
C.nonrivalry and nonexcludability.
D.nonrivalry and large negative externalities.
3) When the price of oil declines significantly, the price of gasoline also declines. The
latter occurs because of a(n):
A.increase in the demand for gasoline.
B.decrease in the demand for gasoline.
C.increase in the supply of gasoline.
D.decrease in the supply of gasoline.
4) Henry George claimed that land-rent taxes would not impair economic efficiency
because:
A.They do not result in a change in the amount of land available
B.Landowners are, as a group, financially secure and able to pay the taxes
C.The supply of land is infinitely elastic
D.Rents represent a small part of income paid to American resource suppliers, so taxes
on wages and salaries are more disruptive
5) From an economist’s perspective, an important consideration for policies to address
global warming is:
A.The market for recyclable inputs
B.The supply and demand for recycled products
C.The marginal cost and marginal benefit of the policies
D.A lawsuit that can arise from the enactment of the policies
6) An example of a horizontal merger is one between an airline and:
A.A chain of hotels
B.Another airline
C.An aluminum company
D.A car rental company
7) One major factor contributing to rising health care costs is:
A.The increased use of expensive outpatient facilities
B.Reduced insurance coverage of new medical illnesses
C.Payments for medical services given to immigrants
D.The lack of patients’ concern regarding cost of treatments
8) Use the following table for Country X to answer the question below. Column 1 of the
table is the price of a product. Column 2 is the quantity demanded domestically (Qdd)
and Column 3 is the quantity supplied domestically (Qsd).
Refer to the table above. If the world price is $5.00, there will be:
A.A domestic surplus of 100 units that will be exported
B.A domestic shortage of 100 units that will be imported
C.A domestic surplus of 200 units that will be exported
D.Neither a domestic surplus nor a shortage
9) When a nation starts opening up to international trade, it will see falling prices for:
A.Goods that it exports
B.Goods that it imports
C.Goods that it has a comparative advantage in
D.All goods traded
10) If government establishes a system of price supports, it is in effect setting a:
A.Price ceiling
B.Price floor
C.Maximum level of output
D.Minimum level of output
11) Donald fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per
ton. Both have one 1000 ITQ and the current market price is $10 per ton. If Donald sold
his ITQ to Ronny for $5000, society would benefit from:
A.More fish being caught
B.Less fish being caught
C.An efficiency saving in fishing costs of $2000
D.An efficiency saving in fishing costs of $5000
12) The demand curve shows the relationship between:
A.money income and quantity demanded.
B.price and production costs.
C.price and quantity demanded.
D.consumer tastes and quantity demanded.
13) A trade deficit means a net:
A.Inflow of payments for goods and services
B.Outflow of goods and services
C.Inflow of goods and services
D.Excess of exports over imports
14) Below are two average total cost schedules for a firm. The first schedule (ATC1)
shows the cost of producing the product at five levels of output before a new
innovation. The second schedule (ATC2) shows the average total cost at the five output
levels after the innovation. What was the reduction in average total cost at each of the
five levels of output as a result of the innovation?
(a)What was the reduction in average total cost at each of the five levels of output as a
result of the innovation?
(b)Plot the average cost curves for the schedules on the graph below.
15) Which type of occupation has the fastest growth expected from 2010 to 2020?
A.Manufacturing
B.Service
C.Construction
D.Mining
16)
Refer to the above graph. Which point is definitely not on the competitive firm’s
short-run supply curve?
A.A
B.B
C.C
D.D
17) Microsoft:
A.dominates the primary Internet markets.
B.is attempting to gain market share in the Internet, smartphone, and tablet markets in
an effort to offset a shrinking PC market.
C.has colluded with Amazon and Google to fix online advertising prices.
D.holds a near-monopoly in the Internet search market.
18) Answer the question on the basis of the data given in the following production
possibilities table:
Refer to the table. For these data, the law of increasing opportunity costs is reflected in
the fact that:
A.the amount of consumer goods that must be sacrificed to get more capital goods
diminishes beyond a point.
B.larger and larger amounts of capital goods must be sacrificed to get additional units of
consumer goods.
C.the production possibilities data would graph as a straight downsloping line.
D.the economy’s resources are presumed to be scarce.
19) Which of the following would tend to raise the value of the U.S. dollar in foreign
exchange markets?
A.A rise in U.S. interest rates
B.An easy monetary policy in the United States
C.A contractionary fiscal policy in the United States
D.An increase in the U.S. demand for foreign oil