1) Nonrivalry and nonexcludability are the main characteristics of:
A.consumption goods.
B.capital goods.
C.private goods.
D.public goods.
2) The values for the long-run ATC curves of three different firms are listed in the table
below.
(a)Which firm faces the lowest minimum ATC?
(b)Which firm has the greatest minimum efficient scale?
(c)Which firm has the smallest economies of scale?
3)
Refer to the diagram. Equilibrium output is:
A.j
B.h
C.g
D.f
4) Which of the following statements is most accurate about welfare utilization by
immigrant and nonimmigrant households (households with minor children) in 2009?
A.Over half of immigrant households received some form of welfare, while less than
half of nonimmigrant households received assistance.
B.Over half of nonimmigrant households received some form of welfare, while less
than half of immigrant households received assistance.
C.Households headed by an illegal immigrant were less likely (as a percentage of
households) to receive some form of welfare than legal immigrant and nonimmigrant
households.
D.Immigrant and nonimmigrant households have similar rates of welfare utilization.
5) Suppose Copernicus Corporation hires Damon Danielson rather than Elmer Ellison,
simply because Damon is a graduate of an Ivy League school while Elmer is a graduate
of a small public university. Elmer is actually more qualified than Damon. This is an
example of:
A.statistical discrimination.
B.irrational behavior.
C.monopsony exploitation.
D.human-capital discrimination.
6) To the economist, total cost includes:
A.explicit and implicit costs.
B.neither implicit nor explicit costs.
C.implicit, but not explicit, costs.
D.explicit, but not implicit, costs.
7)
Refer to the diagram. In the P3P4 price range, demand is:
A.of unit elasticity.
B.relatively inelastic.
C.relatively elastic.
D.perfectly elastic.
8)
Refer to the above graph. At what price will the firm make an economic profit?
A.$2
B.$5
C.$7
D.$10
9) Consider the currency market for British pounds and U.S. dollars. An increase in the
supply of British pounds:
A.Results in an appreciation of the pound and a depreciation of the dollar
B.Results in a depreciation of the pound and a depreciation of the dollar
C.Is equivalent to an increase in the demand for the U.S. dollar
D.Is equivalent to a decrease in the demand for the U.S. dollar
10) With respect to local finance:
A.death and gift taxes are the major source of revenue and most expenditures are for
hospitals and health services.
B.the corporate income tax is the major source of revenue and natural resource
development is the major type of expenditure.
C.property taxes are the basic source of revenue and education is the major type of
expenditure.
D.sales and excise taxes are the major source of revenue and highway construction and
maintenance is the major type of expenditure.
11) The large trade deficit that the United States has with China persists in part because:
A.the U.S. economy has grown slowly in recent years.
B.China has fixed its exchange rate to a basket of currencies that includes the dollar,
and has not allowed the yuan to appreciate relative to the U.S. dollar.
C.China has experienced rapid economic growth over the past decade.
D.China has recently imposed or increased tariffs on most goods imported from the
United States.
12) It is argued that, with a rising demand for college education, if the supply were to
made to become more elastic then college tuition costs would:
A.Rise faster
B.Decrease slowly
C.Increase more slowly
D.Decrease steeply
13)
If we plotted the given data on a graph with R&D expenditures on the horizontal axis,
the:
A.interest-rate cost-of-funds curve would be a vertical line.
B.interest-rate cost-of-funds curve would slope downward.
C.expected-rate-of-return curve would slope downward.
D.expected-rate-of-return curve would be a horizontal line.
14) A normal profit is:
A.the average profitability of a firm over one complete business cycle.
B.calculated by subtracting explicit costs from total revenue.
C.the “price” required to retain entrepreneurial talent in some particular line of
production.
D.the amount by which total revenue exceeds total operating costs.
15) A government is considering undertaking one or more construction projects. The
estimated marginal costs and benefits of each project are given in the table.
Refer to the above table and information. What is the total cost and total benefit of
projects 1, 2, and 3?
A.Total cost is $18 million and total benefit is $19 million
B.Total cost is $24 million and total benefit is $27 million
C.Total cost is $37 million and total benefit is $41 million
D.Total cost is $65 million and total benefit is $66 million
16)
Refer to the cost table above. Based on the cost data given, which of the following
price-quantity tables correctly represents the firm’s short-run supply schedule?
A.Table a
B.Table b
C.Table c
D.Table d
17) Suppose that football tickets at your university are given away for free, and that
there are still empty seats for all games. Ignoring all other costs of going to the games,
you should continue attending until your:
A.Total utility stops increasing
B.Marginal utility begins to diminish
C.Marginal utility stops increasing
D.Total utility reaches zero