1) In 2012, the United States’ balance on goods was about:
A.-$735 billion.
B.+$630 billion.
C.-$540 billion.
D.+$199 billion.
2) Which of the following would be primarily determined in the resource markets?
A.The airfares charged by airlines for family vacations
B.The wage rates for computer programmers and engineers
C.The number of home-internet connections installed
D.The amount of money in circulation issued by the government
3) Which of the following is an effect of the domestic sugar program of the United
States on many of the less-developed countries that export sugar?
A.Export earnings and national incomes have increased
B.The decrease in the supply of sugar to world markets from less-developed countries
has increased world prices
C.There has been an increase in the production of sugar in the United States and a loss
of sales by less-developed countries to the United States
D.There has been improved efficiency in the allocation of agricultural resources
4) The price elasticity of demand for health care is .2. This means that a 5 percent
increase in price will induce a:
A.10 percent decrease in quantity demanded
B.5 percent decrease in quantity demanded
C.2.5 percent decrease in quantity demanded
D.1 percent decrease in the quantity demanded
5) Social Security is financed:
A.by state income tax revenues.
B.by payroll taxes on employees and employers.
C.by federal excise taxes.
D.out of general tax revenues.
6) Which of the following was not one of the principles on which the General
Agreement on Tariffs and Trade (GATT) was established?
A.The elimination of import quotas.
B.Equal, nondiscriminatory trade treatment for all member nations.
C.The formation of international trade contracts to alleviate global poverty.
D.The reduction of tariffs by multilateral negotiations.
7) Use your basic knowledge and your understanding of market structures to answer
this question. Which of the following companies most closely approximates a
homogeneous oligopolist in a highly concentrated industry?
A.Kellogg’s.
B.Pittsburgh Plate Glass.
C.Ford Motor Company.
D.Starbucks Coffee.
8) Suppose that Gamma is an advanced industrial country and Omega is a developing
nation. Omega will gain the most from having some of its people emigrate to Gamma
if:
A.Omega is currently experiencing full employment.
B.the most skilled workers emigrate.
C.Omega currently suffers from high unemployment and the unemployed emigrate.
D.the costs to emigrate to Gamma are high.
9)
Refer to the above table. The resource demand data indicate that the firm is:
A.Buying its resource in an imperfectly competitive market
B.Buying its resource in a perfectly competitive market
C.Selling its product in a perfectly competitive market
D.Selling its product in an imperfectly competitive market
10)
Refer to the tables. Opportunity costs of producing military goods are:
A.increasing in Duckistan but constant in Herbania.
B.constant in both Duckistan and Herbania.
C.larger in Duckistan than in Herbania.
D.smaller in Duckistan than Herbania.
11) A nation can produce two products: steel and wheat. The table below is the nation’s
production possibilities schedule:
Refer to the above table. In moving from combination E to F, the opportunity cost of an
additional unit of steel is:
A.5 units of steel
B.0 unit of wheat
C.1 unit of steel
D.30 units of wheat