1) Many economists are critical of the minimum wage because they believe that it:
A.hurts the efforts of labor unions.
B.reduces the number of available job opportunities.
C.conflicts with policies designed to equalize the distribution of income.
D.causes labor shortages in affected markets.
2) Other things being equal, the law of demand suggests that as:
A.The demand for iPads increases, this will cause the price to increase
B.Income increases, the quantity of iPads demanded will increase
C.The price of iPads decreases, the quantity demanded will increase
D.The price of iPads decreases, the quantity demanded will decrease
3)
Refer to the above graphs. Which graph depicts a situation where sellers are increasing
their output because their product is becoming more popular among buyers?
A.Graph A
B.Graph B
C.Graph C
D.Graph D
4) The Sunshine Corporation finds that its costs are $40 when it produces no output. Its
total variable costs (TVC) change with output as shown in the accompanying table. Use
this information to answer the following question.
Refer to the information. The marginal cost of the third unit of output is:
A.$105.
B.$25.
C.$15.
D.$20.
5) In comparing a tariff and an import quota, we find that:
A.the tariff and quota both generate the same amount of revenue for the U.S. Treasury.
B.the tariff generates revenue for the U.S. Treasury, but the quota does not.
C.the quota generates revenue for the U.S. Treasury, but the tariff does not.
D.neither the tariff nor the quota generates revenue for the U.S. Treasury.
6) Singapore’s health care system includes the following major elements, except:
A.Government mandates designed to promote competition on price and quality among
health care providers
B.High out-of-pocket costs to consumers
C.Laws requiring people to save for future health expenditures
D.A national health insurance plan for its citizens provided by the government
7) Relative to 1800, today in the world there are:
A.more people but lower per-capita consumption.
B.more people but the same per-capita consumption.
C.more people and higher per-capita consumption.
D.the same number of people but higher per-capita consumption.
8)
Refer to the graph above. What could cause the consumer equilibrium point to shift
from point a to point b?
A.The consumer’s income increased
B.The price of good 1 decreased
C.The price of good 1 increased
D.The consumer’s income decreased
9) A pure monopolist is selling six units at a price of $12. If the marginal revenue of the
seventh unit is $5, then the:
A.price of the seventh unit is $10.
B.price of the seventh unit is $11.
C.price of the seventh unit is greater than $12.
D.firm’s demand curve is perfectly elastic.
10) The Road Runner Club contributes money to Senator Sly’s reelection campaign
fund, and Senator Sly helps pass legislation to add more jogging paths across the state.
From this we can definitively conclude:
A.that political corruption has occurred.
B.that logrolling has occurred.
C.that a principal-agent problem has occurred.
D.nothing; the Road Runner Club may have donated to Senator Sly because he already
supported the jogging paths.
11) Which market structure offers little incentive to engage in R&D?
A.Oligopoly
B.Pure monopoly
C.Conglomerates
D.Monopolistic competition
12) A consumer has an income of $200, and the price of X is $5 while the price of Y is
$10. If the consumer buys 8 units of X, then the maximum quantity of Y that she could
also buy is:
A.16
B.18
C.20
D.14
13) An increase in product price will cause:
A.quantity demanded to decrease.
B.quantity supplied to decrease.
C.quantity demanded to increase.
D.the supply curve to shift to the left.