1) The Sherman Act of 1890 outlawed:
A.Monopoly pricing and foreign trade
B.Price discrimination and monopoly profits
C.Restraint of trade and monopolization
D.Foreign trade and monopolization
2)
Refer to the above graph. To maximize profits, the firm should produce the quantity:
A.0A
B.0B
C.0C
D.0K
3) Development assistance as a percentage of GDP is greatest for which of the
following industrialized nations (as of 2012)?
A.The United States.
B.Norway.
C.Sweden.
D.Netherlands.
4) The following table shows the projected rate of return and number of investment
projects which might be undertaken by a small firm. Each project requires an
investment of $1,000.
Refer to the above table and information. If the interest rate decreases from 25 percent
to 20 percent, the quantity demanded of loanable funds by this firm:
A.Increases by $1,000
B.Increases by $3,000
C.Decreases by $3,000
D.Decreases by $4,000
5)
Refer to the given data. At the profit-maximizing level of employment, this firm’s total
labor cost will be:
A.$16.
B.$30.
C.$24.
D.$32.
6) Answer the question on the basis of the following information: Suppose 30 units of
product A can be produced by employing just labor and capital in the four ways shown
below. Assume the prices of labor and capital are $2 and $3 respectively.
Refer to the information. If the price of product A is $0.50, the firm will realize:
A.an economic profit of $4.
B.an economic profit of $2.
C.an economic profit of $6.
D.a loss of $3.
7) The supply curve shows the relationship between:
A.price and quantity supplied.
B.production costs and the amount demanded.
C.total business revenues and quantity supplied.
D.physical inputs of resources and the resulting units of output.
8) Suppose a pure monopolist is charging a price of $12 and the associated marginal
revenue is $9. We thus know that:
A.demand is inelastic at this price.
B.the firm is maximizing profits.
C.total revenue is increasing.
D.total revenue is at a maximum.
9) The graphs below illustrate the market for a product on which an excise tax has been
imposed by government.
Refer to the above graph. What was the price of the product before the tax was
imposed, and what is the price with the tax?
A.$8 and $5, respectively
B.$11 and $8, respectively
C.$8 and $11, respectively
D.$5 and $8, respectively
10) Which of the following measurement issues makes interpretation of U.S. poverty
rates difficult?
A.Poverty statistics measure income rather than consumption, and some families may
be able to consume above the official poverty line.
B.The high cost of living in rural areas tends to result in the understatement of poverty.
C.Most people below the poverty line have substantial unreported income.
D.The poverty rate is adjusted for every urban and rural area, so people’s poverty status
changes whenever they move.
11) Market failure is said to occur whenever:
A.private markets do not allocate resources in the most economically desirable way.
B.prices rise.
C.some consumers who want a good do not obtain it because the price is higher than
they are willing to pay.
D.government intervenes in the functioning of private markets.
12) The MRP curve for labor:
A.intersects the firm’s labor demand curve from above.
B.is the firm’s labor demand curve.
C.lies below the firm’s labor demand curve.
D.lies above the firm’s labor demand curve.
13) The rationale for ability-to-pay taxation and the contention that those with large
incomes should pay more taxes both absolutely and relatively is that:
A.high-income receivers are generally in a better position to shift taxes than are
low-income receivers.
B.the transfer system is regressive and it is therefore essential to have an offsetting
progressive tax structure.
C.rational consumers spend their first dollars of income on the most urgently desired
goods and successive dollars on less essential goods.
D.taxes should be paid for financing public goods in direct proportion to the satisfaction
an individual derives from those goods.
14) Answer the question on the basis of the following five schedules, all of which
represent income tax schedules for an economy. All figures are in billions of dollars.
Which of the schedules represent(s) a regressive tax?
A.V only.
B.III and V.
C.IV only.
D.I only.
15) Answer the question using the following data, which show all available techniques
for producing 20 units of a particular commodity:
Refer to the data. Assuming that the firm is motivated by self-interest and that the 20
units that can be produced with each technique can be sold for $2 per unit, the firm will:
A.realize an economic profit of $10.
B.realize an economic profit of $4.
C.not earn any economic profit.
D.shut down rather than incur a loss by producing.
16) The annual global revenue of Walmart in 2010 was $405 billion, which was greater
than the national incomes of all but _________ nations in the world.
A.10
B.23
C.46
D.35
17) Which of the following are aptly considered entrepreneurs?
A.Top executives of a company
B.Government officials
C.Hired managers of banks
D.Those who form start-ups