1) The desire to hold money for transactions purposes arises because:
A.receipts of income and expenditures are not perfectly synchronized.
B.people fear that prices will rise.
C.households want money on hand in case a good financial investment opportunity
arises.
D.low interest rates reduce the opportunity cost of holding money.
2) which of the following nations is not a member of the euro zone?
a.italy
b.spain
c.germany
d.great britain
3) which of the following countries has recently emerged as one of the world’s top
trading nations in terms of total trade volume?
a.chile
b.india
c.ireland
d.china
4) In the taste-for-discrimination model:
A.discriminatory employers behave as if employing non-preferred-race workers adds to
costs.
B.individual workers are judged by the characteristics of the groups to which they
belong.
C.prejudiced white employers will never hire African-American workers.
D.women and minorities are confined to a limited number of occupations.
5) Usury laws:
A.allocate funds from low-productivity to high-productivity investments.
B.establish a legal ceiling on interest rates.
C.make more funds available to low-income borrowers.
D.create a surplus of loanable funds.
6)
Assume a pencil manufacturer is employing resources C and D in such quantities that
the MRPs of the last units hired are $80 and $50 respectively. The price of resource C is
$90 and the price of D is $35. This firm:
A.should hire less of C and more of D.
B.should hire more of both C and D.
C.should hire less of both C and D.
D.is using the least-cost combination of C and D
7) To say that coins are “token money” means that:
A.their face value is less than their intrinsic value.
B.their face value is greater than their intrinsic value.
C.their face value is equal to their intrinsic value.
D.they are not legal tender.
8) the following table showing the demand schedule facing a nondiscriminating
monopolist:
refer to the above table. assume that this monopolist faces zero production costs. the
profit-maximizing monopolist will set a price of:
a.$10.
b.$7.
c.$5.
d.$3.
9) for a purely competitive firm total revenue:
a.is price times quantity sold.
b.increases by a constant absolute amount as output expands.
c.graphs as a straight upsloping line from the origin.
d.has all of these characteristics.
10) Which of the following amended the Clayton Act’s prohibition against mergers that
substantially lessen competition?
A.Celler-Kefauver Act of 1950
B.Wheeler-Lea Act of 1938
C.Clayton Act of 1914
D.Sherman Act of 1890
11) Which one of the following is not correct?
A.In antitrust cases defendants attempt to define the relevant market broadly.
B.The courts have varied over time in their interpretations of the antitrust statutes.
C.Antitrust suits can only be originated by the Federal Trade Commission.
D.In antitrust cases the prosecution attempts to define the relevant market narrowly.