1) Over the past decade, U.S. per capita consumption of water:
A.and energy have both increased.
B.has increased, while per capita consumption of energy has fallen.
C.and energy have leveled off or fallen.
D.has fallen, while per capita consumption of energy has increased.
2) Which of the following is not an aggregate-demand-side explanation of business
cycles?
A.the real-business-cycle theory
B.the idea of coordination failures
C.mainstream macroeconomics
D.monetarism
3) Answer the question on the basis of the following marginal product data for
resources a and b. The output of these independent resources sells in a purely
competitive market at $1 per unit.
Refer to the above data. Assume now that the prices of a and b are $15 and $20
respectively. To maximize profits what combination of a and b should the employer
hire?
A.3 of a and 5 of b
B.5 of a and 7 of b
C.7 of a and 7 of b
D.6 of a and 2 of b
4) Which of the following helps finance the medical expenses of individuals receiving
TANF or SSI?
A.Medicare
B.Supplemental Security Income (SSI)
C.Medicaid
D.Social Security
5) the short-run supply curve of a purely competitive producer is based primarily on its:
a.avc curve.
b.atc curve.
c.afc curve.
d.mc curve.
6) defensive medicine:
a.solves the moral hazard problem.
b.increases the demand for health care.
c.solves the principal-agent problem.
d.is the same as preventive medicine.
7)
in the above diagram the range of diminishing marginal returns is:
a.0q3.
b.0q2.
c.q1q2.
d.q1q3.
8)
Refer to the above labor market diagrams. A monopsonistic labor market is represented
by Figure:
A.5
B.4
C.3
D.2
9) if at the mc = mr output, avc exceeds price:
a.new firms will enter this industry.
b.the firm should produce the mc = mr output and realize an economic profit.
c.the firm should shut down in the short run.
d.the firm should expand its plant.
10) Mining of “conflict diamonds” tends to:
A.be more profitable as warring factions are willing to pay more for the diamonds.
B.occur at a slower pace than would maximize the long-term stream of profits because
war increases extraction costs.
C.occur at a pace slower than would maximize the long-term stream of profits since the
war disrupts production.
D.occur at a pace faster than would maximize the long-term stream of profits since
warring factions extract diamonds as quickly as possible due to fears that they may
soon lose control of the diamond mines.
11)
refer to the above diagram, in which solid arrows reflect real flows; broken arrows are
monetary flows. flow (4) might represent:
a.the services of nasa astrophysicists.
b.the purchase of stealth bombers.
c.personal income taxes.
d.investment spending by private corporations.
12) if we say that a price is too high to clear the market, we mean that:
a.quantity demanded exceeds quantity supplied.
b.the equilibrium price is above the current price.
c.quantity supplied exceeds quantity demanded.
d.the price of the good is likely to rise.
13) countries that have experienced modern economic growth have also tended to:
a.adopt feudalistic institutions.
b.restrict women and minorities from holding certain economic and political positions.
c.move toward more democratic forms of government.
d.have less leisure time for sport and artistic activities.
14) the basic difference between consumer goods and capital goods is that
a.consumer goods are produced in the private sector and capital goods are produced in
the public sector.
b.an economy that commits a relatively large proportion of its resources to capital
goods must accept a lower growth rate.
c.the production of capital goods is not subject to the law of increasing opportunity
costs.
d.consumer goods satisfy wants directly while capital goods satisfy wants indirectly.