1) Which of the following market structures do economists generally agree is the least
conducive to R&D and innovation?
A.monopolistic competition
B.pure competition
C.pure monopoly
D.oligopoly
2) Farm groups spend considerable amounts of money to maintain and enlarge political
support for farm subsidies. This illustrates:
A.coalitions.
B.rent-seeking activity.
C.the special-interest effect.
D.the voting paradox.
3) the demand for commodity x is represented by the equation p = 100 – 2q and supply
by the equation p = 10 + 4q.
refer to the above information. the equilibrium quantity is:
a.10.
b.20.
c.15.
d.30.
4) Stock market price quotations best exemplify money serving as a:
A.store of value.
B.unit of account.
C.medium of exchange.
D.index of satisfaction.
5) A $20 bill is a:
A.gold certificate.
B.Treasury note.
C.Treasury bill.
D.Federal Reserve Note.
6)
refer to the above diagram. curve b is a:
a.production possibilities curve indicating constant opportunity costs.
b.production possibilities curve indicating increasing opportunity costs.
c.demand curve indicating that the quantity of consumer goods demanded increases as
the price of capital falls.
d.technology frontier curve.
7) The efficiency loss of a tax is:
A.the net value of sacrificed output caused by the tax.
B.that portion of the tax paid by producers minus the portion paid by consumers.
C.that portion of the tax paid by consumers minus the portion paid by producers.
D.the total tax revenue minus the output loss caused by the tax.
8) in the short run a purely competitive seller will shut down if product price:
a.equals average revenue.
b.is greater than mc.
c.is less than avc.
d.is less than atc.
9) Small time deposits, by definition:
A.mature in one month or less.
B.mature in one year or less.
C.are less than $100,000.
D.are held by state and local banks only.
10)
Refer to the above diagram. If aggregate supply is AS1 and aggregate demand is AD0,
then:
A.at any price level above G a shortage of real output would occur.
B.F represents a price level that would result in a surplus of real output of AC.
C.a surplus of real output of GH would occur.
D.F represents a price level that would result in a shortage of real output of AC.
11) In the United States:
A.whites have higher unionization rates than African-Americans.
B.men have higher unionization rates than women.
C.managers have higher unionization rates than transportation workers.
D.workers in mining have higher unionization rates than workers in government.
12) Authoritative estimates suggest that currently union workers on the average:
A.achieve no wage advantage over nonunion workers in the same occupation.
B.realize a 5 percent wage advantage over nonunion workers in the same occupation.
C.realize a 20-30 percent wage advantage over nonunion workers in the same
occupation.
D.realize a 15 percent wage advantage over nonunion workers in the same occupation.
13) Which of the following is not considered a legitimate concern of a large public
debt?
A.Bankruptcy of the Federal government
B.Disincentives created by higher taxes
C.Crowding-out of private investment
D.Increased income inequality
14) The Celler-Kefauver Act of 1950:
A.modified patent legislation by reducing the number of years over which a patent is
applicable.
B.prohibited any firm from acquiring the real assets of another firm where the effect
was to lessen competition.
C.declared all conglomerate mergers to be illegal.
D.prohibited any firm from buying the stock of another firm where the effect was to
lessen competition.
15) The United States has about ___ percent of the world’s population and produces
about ___ percent of the world output.
A.20, 30
B.3, 41
C.10, 32
D.5, 27
16) assume an economy that is producing only one product and that year 3 is the base
year. output and price data for a five-year period are as follows. answer the next
question(s) on the basis of these data.
refer to the above data. for the years shown the growth of:
a.real gdp has exceeded the growth of nominal gdp.
b.nominal gdp accurately reflects changes in real output.
c.nominal gdp overstates increases in real output.
d.nominal gdp understates increases in real output.
17) The purchasing power of money and the price level vary:
A.inversely.
B.directly during recessions, but inversely during inflations.
C.directly, but not proportionately.
D.directly and proportionately.
18) in long-run equilibrium, purely competitive markets:
a.minimize total cost.
b.maximize consumer surplus.
c.yield economic profits to most sellers.
d.inevitably degenerate into monopoly in increasing cost industries.
19) which of the following would mostly likely increase the demand for gasoline?
a.the expectation by consumers that gasoline prices will be higher in the future.
b.the expectation by consumers that gasoline prices will be lower in the future.
c.a widespread shift in car ownership from suvs to hybrid sedans.
d.a decrease in the price of public transportation.
20) Which of the following is not part of the M2 money supply?
A.money market mutual fund balances
B.money market deposit accounts
C.currency
D.large time deposits