1) Table 16-3
The following table shows the output produced by each of the top eight firms in four
industries as well as the total industry output for those industries.
Based on the concentration ratio, which industry is the most competitive?
a.Industry A
b.Industry B
c.Industry C
d.Industry D
2) Figure 7-11
If the supply curve is S and the demand curve shifts from D to D’, what is the increase
in producer surplus due to new producers
a. $625
b. $2,500
c. $3,125
d. $5,625
3) In a perfectly competitive market, buyers and sellers are price setters.
a.True
b.False
4) Table 20-9
Income Inequality in the United States
The values in the table reflect the percentages of pre-tax-and transfer income.
Source: US Census Bureau
Refer to Table 20-9. Which of the following statements best describes the trends in the
table?
a.From 1980 to 2010, the distribution of income has become less equal.
b.From 1980 to 2010, the distribution of income has remained the same.
c.From 1980 to 2010, the distribution of income has become more equal.
d.None of the above is correct.
5) Table 18-3
Refer to Table 18-3. For Firm C, the marginal product of labor is
a.increasing.
b.constant.
c.decreasing.
d.negative.
6) Table 12-11
If Al has taxable income of $165,000, his average tax rate is
a. 26.6%.
b. 26.9%.
c. 27.3%.
d. 28.5%.
7) Table 7-5
For each of three potential buyers of oranges, the table displays the willingness to pay
for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only
three buyers of oranges, and only three oranges can be supplied per day.
If the market price of an orange is $0.40, then
a.6 oranges are demanded per day, and consumer surplus amounts to $4.95.
b.6 oranges are demanded per day, and consumer surplus amounts to $5.10.
c.7 oranges are demanded per day, and consumer surplus amounts to $5.30.
d.7 oranges are demanded per day, and consumer surplus amounts to $5.15.
8) The term productivity
a.means the same thing as efficiency.
b.is seldom used by economists, as its meaning is not precise.
c.refers to the quantity of goods and services produced from each unit of labor input.
d.refers to the variety of goods and services from which households can choose when
they shop.
9) Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence’s
daughter to play the guitar in exchange for Terrence tiling Dale’s kitchen floor,
a.only Dale is made better off by trade.
b.only Terrence is made better off by trade.
c.both Dale and Terrence are made better off by trade.
d.neither Dale nor Terrence are made better off by trade.
10) The following table contains some production possibilities for an economy for a
given year.
If the production possibilities frontier is a straight line, then “?” must be
a.180
b.200
c.220
d.240
11) A study of segregated streetcars in the southern United States in the early twentieth
century found which of the following?
a.Firms that ran the streetcars were more interested in segregating customers by race
than profits.
b.The firms that ran the streetcars were unanimous in their support of laws that required
segregation of races.
c.Before the passage of laws that mandated segregation of races on streetcars,
segregation of smokers and nonsmokers was more common than segregation of races.
d.Segregation based on gender was more common than race at first.
12) Figure 8-2
The vertical distance between points A and B represents a tax in the market.
The amount of the tax on each unit of the good is
a.$1.
b.$4.
c.$5.
d.$9.
13) Figure 14-7
Let Q represent the quantity of output and suppose the price of the good is $125. Then
marginal revenue is
a. $80 at Q = 270.
b. $100 at Q = 322.
c. $175 at Q = 515.
d. None of the above are correct.