1) In the last six decades (1950-2009) farm employment in the U.S. has been:
A.Increasing both in absolute numbers and as a proportion of the total employment
B.Increasing in absolute numbers, but declining as a proportion of the total employment
C.Decreasing both in absolute numbers and as a proportion of the total employment
D.Decreasing in absolute numbers, but rising as a proportion of the total employment
2) The number of countries belonging to the World Trade Organization (WTO), as of
2013, is about:
A.159
B.125
C.80
D.202
3) Innovation:
A.is the first discovery of a product or process, rather than its first successful
commercial introduction.
B.includes new products but not new production methods.
C.is also known as diffusion.
D.can either increase or decrease the market share of a large firm, depending on
whether it is introduced by the large firm or one of its competitors.
4) Which of the following programs receives the smallest share of total Federal
spending?
A.Social security program
B.Defense
C.Medicare
D.Research & development
5) Children are charged less than adults for admission to professional baseball games
but are charged the same prices as adults at the concession stands. Which of the
following conditions of price discrimination explains why this occurs?
A.The seller must have some monopoly power; that is, it must be able to set the product
price.
B.The seller must be able to identify buyers by group characteristics such as age or
income.
C.Groups must have different elasticities of demand for the product.
D.The items can be bought by people in the low-price group and transferred to
members of the high-price group.
6) The following table applies to a loan with interest rate of 5% per period:
Refer to the table above. What value goes on the cell labeled W?
A.$205
B.$105
C.$210
D.$2,205
7) One major part of the opportunity costs of one’s decision to go to college after
high-school graduation is the:
A.Additional income that one can get if one had a college degree
B.Education that one gets while in college
C.High-school diploma needed in order to apply for college
D.Full-time job that one could have gotten instead of going to college
8)
A recent estimate of the fiscal burden on state and local government for low-skilled
immigrant households is nearly:
A.$10 billion annually
B.$30 billion annually
C.$50 billion annually
D.$100 billion annually
9)
Refer to the figure above, which shows four different Lorenz curves (I, II, III, and IV).
What point indicates that the lower 60 percent of the households receive only 40
percent of the nation’s total income?
A.a
B.b
C.c
D.d
10) For the following three cases, use a midpoints formula to calculate the coefficient
for the cross elasticity of demand and identify the type of relationship between the two
products.
(a)The quantity demanded for product A increases from 30 to 40 as the price of product
B increases from $0.10 to $0.20.
Coefficient: ______
Relationship: ________________
(b)The quantity demanded for product A decreases from 3000 to 1500 as the price of
good B increases from $5 to $10.
Coefficient: ______
Relationship: ________________
(c)The quantity demanded for product A remains 400 units as the price of product B
increases from $25 to $30.
Coefficient: ______
Relationship: ________________