1) The Patient Protection and Affordable Care Act (PPACA) of 2010 is more commonly
known as:
A.Dodd Frank
B.Obamacare
C.Stimulus spending
D.Quantitative easing (QE)
2)
Suppose that Rosa is considering migration to another country. To move, she will have to
spend $5000 on transportation and $4000 in application and other processing fees. Rosa’s
stream of future earnings in her home country is $500,000. She expects to earn a stream of
future earnings of $800,000 in another country. Based on this information, Rosa’s explicit
cost of migrating is:
A.$9,000
B.$500,000
C.$507,000
D.$5,000
3) The introduction of the iPhone by Apple is an example of a(n):
A.Invention
B.Innovation
C.Diffusion
D.Infusion
4) Answer the question on the basis of the following cost data:
Refer to the data. The average fixed cost of producing 3 units of output is:
A.$8.
B.$7.40.
C.$5.50.
D.$6.
5) The Sherman Act:
A.was declared unconstitutional in 1895
B.provided for government regulation of the railroads.
C.declared monopoly and restraints of trade to be illegal.
D.exempted the railroad and communications industries from the antitrust laws.
6) Answer the question on the basis of the following data for the hypothetical nations of
Alpha and Beta. Qs is domestic quantity supplied and Qd is domestic quantity
demanded.
Refer to the given data. Assuming that Alpha and Beta are the only two nations in the
world, at the equilibrium world price:
A.both nations will export steel.
B.both nations will import steel.
C.Alpha will export steel and Beta will import steel.
D.Beta will export steel and Alpha will import steel.
7) Other things equal, if more firms enter a monopolistically competitive industry:
A.the demand curves facing existing firms would shift to the right.
B.the demand curves facing existing firms would shift to the left.
C.the demand curves facing existing firms would become less elastic.
D.losses would necessarily occur.
8) Which of the following would increase the supply of health care services?
A.Increased practice of defensive medicine
B.More tax subsidies for consumers
C.Increases in physicians’ productivity
D.Increases in health insurance coverage
9) Using antitrust law to split up an unregulated natural monopoly into several
competing firms:
A.would reduce product price.
B.would increase product price.
C.might either increase product price or reduce product price.
D.will reduce average total cost.
10) If two nations have different per capita income levels and their rates of economic
growth are identical, then the absolute per capita income differential:
A.will remain constant.
B.may either widen or diminish.
C.will diminish.
D.will widen.
11) Suppose the price elasticity of demand for bread is 0.20. If the price of bread falls
by 10 percent, the quantity demanded will increase by:
A.2 percent and total expenditures on bread will rise.
B.2 percent and total expenditures on bread will fall.
C.20 percent and total expenditures on bread will fall.
D.20 percent and total expenditures on bread will rise.
12)
The diagram shows two product supply curves. It indicates that:
A.over range Q1Q2 price elasticity of supply is greater for S1 than for S2
B.over range Q1Q2 price elasticity of supply is greater for S2 than for S1
C.over range Q1Q2 price elasticity of supply is the same for the two curves.
D.not enough information is given to compare price elasticities.
13) The demand for airline pilots results from the demand for air travel. This fact is an
example of:
A.resource substitutability.
B.rising marginal resource cost.
C.elasticity of resource demand.
D.the derived demand for labor.
14) Use the graph and the letters in it to answer these questions: (a) What is the
profit-maximizing level of output? (b) What is the area of economic profit? (c) What is
the per-unit amount of profit at the profit-maximizing level of output?
15) Which of the following would be an example of direct foreign investment in DVCs?
A.A grant from the World Bank to build an irrigation project in Kenya
B.The financing of a new chemical plant in Peru by a German company
C.A low-interest loan from the U.S. government to Turkey to purchase military
hardware
D.A loan from the Japanese government to the Indonesian government to pay for
electronic equipment
16) Which one of the following is part of the financial account on the U.S. balance of
payments?
A.Net transfers
B.Net investment income
C.U.S. goods exports
D.U.S. purchases of assets abroad
17)
The information contained in the table illustrates:
A.political logrolling.
B.the median-voter model.
C.the paradox of voting.
D.the principal-agent problem theorem.
18) A major distinction between a monopolistically competitive firm and an
oligopolistic firm is that:
A.One is a price taker and the other is a price maker
B.A recognized interdependence exists between firms in one industry but not in the
other
C.One always produces differentiated products and the other always produces a
homogeneous product
D.One necessarily faces a downward-sloping demand curve and the other a horizontal
demand curve
19) In 2012, the so-called Tax Freedom Day in the U.S. occurred in:
A.February
B.April
C.August
D.June
20) The decision to legally or illegally emigrate from a foreign country to the United
States is mainly driven by the potential earning opportunities available in the U.S.
economy. Why do earning opportunities play a major role in the decision to migrate?
21) Firms in the market for dog food are selling in a purely competitive market. A firm
producing dog food has an output of 10,000 pounds of dog food, for which it sells for
$0.50 a pound. At the output level of 10,000 pounds the average variable cost is $0.30,
the average total cost is $0.70, and the marginal cost is $0.50. What would you expect
the firm to do in the short run? The market in the long run?
22)
23) What are examples of the fastest growing occupations in percentage terms expected
to be from 20102020? What economic principle of resource pricing best explains these
trends?
24) Why have nations sought free-trade zones and economic integration with other
nations? What is an example?