1) Which of the following is not included in the current account of a nation’s balance of
payments?
A.Its goods exports.
B.Its goods imports.
C.Its net investment income.
D.Its purchases of real assets abroad.
2) Answer the question on the basis of the following information. Assume that if the
interest rate that businesses must pay to borrow funds were 20 percent, it would be
unprofitable for businesses to invest in new machinery and equipment, so investment
would be zero. But if the interest rate were 16 percent, businesses would find it
profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be
invested. Assume that total investment continues to increase by $10 billion for each
successive 4 percentage point decline in the interest rate.
Refer to the information. Which of the following correctly expresses the indicated
relationship as an equation?
A.i = 20 – 4I.
B.i = 20 – .4I.
C.i = 24 – .4I.
D.i = 20 – 10I.
3) If the University Chamber Music Society decides to raise ticket prices to provide
more funds to finance concerts, the Society is assuming that the demand for tickets is:
A.parallel to the horizontal axis.
B.shifting to the left.
C.inelastic.
D.elastic.
4)
Refer to the diagram. The firm will realize an economic profit if price is:
A.P1
B.P2
C.P3
D.P4
5) Which statement is true given the total cost function: Total cost = 10Q + 5Q2 + 100?
A.Total cost at Q = 4 is 120
B.Average total cost at Q = 10 is 70
C.Total cost at Q = 5 is 175
D.Average fixed cost is zero at Q = 100
6)
Refer to the graph. Using Qs for quantity supplied and P for price, which of the
following equations correctly states the supply of this product?
A.P = 4 + .2Qs.
B.P = 60/Qs.
C.P = 10Qs – 2P.
D.P = 2 + .2Qs.
7)
Refer to the given data. Over the $10 to $8 range of wage rates, the demand for labor is:
A.perfectly elastic.
B.elastic.
C.unit-elastic.
D.inelastic.
8) A positive-sum game occurs:
A.when the sum of the two firms’ outcomes is positive.
B.whenever any of the values in the payoff matrix are positive.
C.when the gains received by one player are exactly offset by the losses to the other.
D.whenever the payoffs to the two players are equal.
9) Which of the following groups has the lowest poverty rate?
A.Married-couple families.
B.Whites.
C.Foreign-born (not citizens).
D.Asians.
10) Which of the following is not one of the new taxes imposed under the PPACA?
A.2.9 percent excise tax on medical devices.
B.10 percent tax on indoor tanning.
C.3.8 percent tax on “junk food.”
11) Which is not true for a monopolistically competitive industry?
A.Firms tend to operate with excess capacity
B.Each firm faces a downward-sloping demand curve
C.These firms earn zero economic profits in the long run
D.Firms operate at the lowest point of their ATC curves in the long run
12) A constant-cost industry is one in which:
A.a higher price per unit will not result in an increased output.
B.if 100 units can be produced for $100, then 150 can be produced for $150, 200 for
$200, and so forth.
C.the demand curve and therefore the unit price and quantity sold seldom change.
D.the total cost of producing 200 or 300 units is no greater than the cost of producing
100 units.
13) The MRP curve is the resource demand curve for:
A.neither the purely competitive nor the imperfectly competitive seller.
B.the imperfectly competitive seller but not the purely competitive seller.
C.the purely competitive seller but not the imperfectly competitive seller.
D.both the purely competitive and imperfectly competitive seller.
14) The Food for Peace program is designed to:
A.achieve 100 percent price parity for all farm products.
B.discover new uses for farm products through research and development.
C.take agricultural land out of the production of feed grains.
D.facilitate the distribution of surplus U.S. farm products in the developing countries.