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1)
Refer to the given data. The marginal revenue product of the fourth worker is:
A.$8.
B.$52.
C.$2.
D.$4.
2)
Refer to the diagram. In short-run equilibrium, the monopolistically competitive firm
shown will set its price:
A.below ATC.
B.above ATC.
C.below MC.
D.below MR.
3) If the exchange rate changes so that more Mexican pesos are required to buy a dollar,
then:
A.the peso has appreciated in value.
B.Americans will buy more Mexican goods and services.
C.more U.S. goods and services will be demanded by the Mexicans.
D.the dollar has depreciated in value.
4) Inclusive unionism is practiced mostly by:
A.professional and semiprofessional employees.
B.small unions comprised of skilled workers, such as the bricklayers.
C.industrial unions.
D.craft unions.
5) We would expect a cartel to achieve:
A.both allocative efficiency and productive efficiency.
B.allocative efficiency but not productive efficiency.
C.productive efficiency but not allocative efficiency.
D.neither allocative efficiency nor productive efficiency.
6) Which would be a likely cause of an increase in the demand for pizza?
A.A reduced desire for take-out and fast-food dining
B.A decrease in the price of hamburger sandwiches
C.A decrease in the prices of cheese, pepperoni, and mushrooms
D.A health report showing eating pizza reduces stress
7) When firms in an industry reach an agreement to fix prices, divide up market share,
or otherwise restrict competition, they are practicing the strategy of:
A.Interindustry competition
B.Limit pricing
C.Price leadership
D.Collusion
8)
Refer to the graph above, which shows the supply and demand for British pounds. D1
and S1 represent the initial demand and supply curves. If the supply of British pounds
in the foreign exchange market shifts to S3, and the British government wanted to fix
the exchange rate at its initial level, then it should:
A.Sell U.S. dollars out of its reserves
B.Buy U.S. dollars to add to its reserves
C.Sell British pounds in the foreign exchange market
D.Buy British bonds in the open market
9) A television station reports that the price of coffee has increased but the quantity
traded in the market has decreased. This situation would be caused by a(n):
A.Increase in demand
B.Increase in supply
C.Decrease in demand
D.Decrease in supply
10) The first discovery (as distinct from first commercial application) of a product or
process is called:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
11) A firm operating in a purely competitive labor market has the following marginal
revenue product schedule.
If the wage rate decreases from $17 to $13, by how much will the firm expand
employment?
A.5 workers
B.4 workers
C.3 workers
D.2 workers
12)
Refer to the above graph. It shows the total product (TP) curve. At which point is
marginal product smallest?
A.Point a
B.Point b
C.Point c
D.Point d
13) Suppose that the quantity of a certain type of farmland available is 400,000 acres,
and the demand for this land is given in the table below.
Refer to the above information and table. If landowners were taxed at a rate of $150 per
acre for their land, what would be the economic rent on this land after taxes, and how
many acres would be rented?
A.$50 and 400,000 acres
B.$400 and 50,000 acres
C.$150 and 400,000 acres
D.$250 and 50,000 acres
14) The major objective of Medicaid is to:
A.provide health care services to the aged.
B.provide health care services to those receiving public assistance.
C.contain rising health care costs.
D.make a basic health care package available to all Americans.
