1) A special-interest issue is one whose passage yields:
A.large private benefits compared to external benefits.
B.large external benefits compared to private benefits.
C.small economic losses to a small number of people and large economic losses to a
large number of people.
D.large economic gains to a small number of people and small economic losses to a
large number of people.
2) when average fixed costs are falling:
a.average total cost must be falling.
b.average variable cost may be either rising or falling.
c.marginal cost must be falling.
d.average variable costs must be rising.
3)
refer to the above diagram. the total utility yielded by 4 units of x is:
a.4
b.15
c.17
d.18
4) The U.S. recession of 2001 provides a good example of:
A.demand-pull inflation.
B.cost-push inflation.
C.a recessionary expenditure gap.
D.the repercussions of hyperinflation.
5) in industrially advanced countries estimates suggest the income elasticity of demand
for health care is about:
a.+3.
b.+6.
c.-2.
d.+1.
6) a well-tested economic theory is often called:
a.a hypothesis.
b.a prototype.
c.a principle.
d.an anomaly.
7) The crowding-out effect refers to the possibility that:
A.when used simultaneously, expansionary fiscal and monetary policies are
counterproductive.
B.the asset demand for money varies inversely with the interest rate.
C.deficit financing will increase the interest rate and reduce investment.
D.an increase in the supply of money will result in a decline in velocity.
8) In which of the following U.S. occupations is the rate of unionization the highest?
A.protective services
B.sales workers
C.managers
D.transportation workers
9)
Which of the above diagrams best portrays an improvement in expected rates of return
on investment?
A.A
B.B
C.C
D.D
10) The plus items below are “export-type” entries and the minus items are
“import-type” entries in the balance of payments for the hypothetical country of Zippo.
Refer to the above information. The financial account items for Zippo are:
A.1, 2, 3, and 4.
B.1, 3, 4, 5, 7, and 9.
C.6 and 8.
D.1, 2, 4, 7, and 9.
11) economists define durable goods as those products expected to last at least _____
year(s).
a.1
b.3
c.5
d.10
12) refer to the above diagram. if labor is the only variable input, the average product of
labor is at a:
a.minimum at point b
b.maximum at point b
c.maximum at point a
d.maximum at point c