1)
Assumptions: (1) Employers in this market are willing and able to ignore minimum
wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant)
workers; (3) St represents the total supply of workers in this labor market (Sd plus
illegal immigrants); and (4) unless otherwise stated, illegal immigration is not
effectively blocked by the government.
Refer to the given figure and assumptions. If the government effectively prevents illegal
immigrants from working in this labor market, the equilibrium wage and level of
employment are, respectively:
A.$5.50 and 250,000.
B.$5.50 and 350,000.
C.$8.00 and 350,000.
D.$5.50 and 450,000.
2) The law of diminishing returns implies:
A.The more hours you spend studying the less you will know
B.Your understanding will be increased by decreasing your marginal study time
C.Eventually, the more hours you spend studying per day, the less you will learn with
each added hour
D.The more hours you spend studying per day, the more you will learn with each added
hour
3) Which of the following best explains why total compensation for U.S. workers has
increased significantly over the past several decades, but take-home pay by U.S.
workers has increased by much less?
A.An increased share of total compensation has gone to provide health insurance to
workers.
B.The share of total compensation going to retirement accounts has increased relative to
all other components of compensation.
C.Total compensation is measured in current dollar terms; take-home pay is measured
in inflation-adjusted dollars.
D.Workers are receiving a much larger share of total compensation in the form of goods
and services produced by the firms that employ them.
4)
Refer to the above table. Which product is most responsive to a change in income?
A.Product W
B.Product X
C.Product Y
D.Product Z
5)
Refer to the diagram for a noncollusive oligopolist. We assume that the firm is initially
in equilibrium at point E, where the equilibrium price and quantity are P and Q. If the
firm’s rivals will ignore any price increase but match any price reduction, the firm’s
marginal revenue curve will be (moving from left to right):
A.D1ED2.
B.MR2abMR1.
C.MR2aMR2.
D.MR1bMR1.
6) The following graph is the production possibilities curve of a nation:
Refer to the above graph. The combination “5 drill presses and 2 bread” indicates:
A.An unattainable combination for the nation
B.Some resources in the nation are unemployed
C.An ideal combination for the nation
D.A combination produced when the nation is at full employment
7) Economies of scale are indicated by:
A.the rising segment of the average variable cost curve.
B.the declining segment of the long-run average total cost curve.
C.the difference between total revenue and total cost.
D.a rising marginal cost curve.
8) Health care spending was about what percentage of U.S. GDP in 2011?
A.45%
B.32%
C.18%
D.8%
9)
Refer to the diagram. Which of the following supply and demand shifts portray the
long-run problem that farms face?
A.S to S’ and D to D’
B.S to S’ and D’ to D
C.S’ to S and D’ to D
D.S’ to S and D to D’
10) The table below shows the output (either machines or wine) that each unit of input
in France and Germany can produce:
Refer to the table above. Based on the given information, we see that:
A.France has a comparative advantage in producing wine
B.Germany has a comparative advantage in producing wine
C.Neither country has a comparative advantage in producing wine
D.Germany can produce machines at a lower opportunity cost than France
11) Because majority voting fails to incorporate the strength of the preferences of
individual voters, it:
A.creates negative externalities.
B.under some circumstances produces economically inefficient outcomes.
C.leads to market failure.
D.leads to politics dominated by special interest groups.
12) According to U.S. Census Bureau data, approximately how many illegal immigrants
are estimated to be living continuously in the United States?
A.5 million.
B.11 million.
C.23 million.
D.30 million.
13) Which type of merger is most likely to be the focus of antitrust scrutiny and
enforcement?
A.Conglomerate
B.Horizontal
C.Vertical
D.Natural
14) The following table contains data for the U.S. balance of payments in a prior year.
Answer the question on the basis of this information. All figures are in billions of
dollars.
U.S. goods exports +$793
U.S. goods imports -1573
U.S. exports of service +280
U.S. imports of services -222
Net investment income +5
Net transfers -81
Capital account -5
Foreign purchases of assets in the U.S. +1198
U.S. purchases of foreign assets -395
By how much did Americans forgive debt owed to them by foreigners than foreigners
forgave debt owed to them by Americans?
A.+$5 billion
B.-$5 billion
C.+$72 billion
D.-$72 billion
15) The long-run market supply curve would be downward-sloping if the representative
firms’:
A.Demand curves shift up as the industry expands
B.ATC curves shift down as the industry expands
C.Supply curves shift left as the industry expands
D.Demand curves shift down as the industry expands