1) The demographic transition concept suggests that:
A.effective birth control is the primary prerequisite of DVC income growth.
B.income growth must first occur before DVC birth rates will decline.
C.children are economic assets in the IACs, but economic liabilities in the DVCs.
D.the IACs will have higher birth rates than the DVCs.
2) (Consider This) The idea that the price level readily moves upward but not
downward is called the:
A.elevator effect.
B.escalator effect.
C.ratchet effect.
D.stair-step effect.
3)
refer to the above diagram. a government-set price ceiling is best illustrated by:
a.price a.
b.quantity e.
c.price c.
d.price b.
4) in 2007, personal saving comprised what portion of u.s. household income?
a.negative 2 percent.
b.positive 1 percent
c.positive 5 percent
d.positive 12 percent
5) the slope of a budget line reflects the:
a.elasticity of demand for the two products.
b.price ratio of the two products.
c.amount of the consumer’s income.
d.utility ratio of the two products.
6) In 2007, the capital account in the U.S. balance of payments was in:
A.deficit, and larger than the current account deficit.
B.surplus, and larger than the current account surplus.
C.balance, with no deficit or surplus.
D.deficit, and smaller than the current account deficit.
7)
Refer to the above data. At the profit maximizing level of employment, this firm’s, total
revenue will be:
A.$16.
B.$32.
C.$24.
D.$30.
8)
Refer to the above data. If the firm is hiring workers under purely competitive
conditions at a wage rate of $22, it will employ:
A.1 worker.
B.2 workers.
C.3 workers.
D.4 workers.
9) Historically, many aspects of U.S. farm policies had their origins in the:
A.Agricultural Extension Service Act.
B.Agricultural Adjustment Act.
C.Homestead Act.
D.Land Grant Act.
10) Coins in people’s pockets and purses are:
A.included in M1, but not in M2.
B.included in both M1 and in M2.
C.included in M2, but not in M1.
D.excluded from M1 and M2 because people can exchange them for Federal Reserve
notes.
11) Large time deposits of $100,000 or more are:
A.a component of M1.
B.a component of M2 but not of M1.
C.a component of M1 but not of M2.
D.not a component of M1 or M2.
12) the market system’s answer to the fundamental question “who will get the goods
and services?” is essentially:
a.”those willing and able to pay for them.”
b.”those who physically produced them.”
c.”those who most need them.”
d.”those who get utility from them.”
13) the relationship between the marginal cost and the average total cost schedule is
such that:
a.the behavior of one schedule does not affect the other.
b.if atc exceeds mc, mc must be rising.
c.if mc is declining, atc may be either declining or rising.
d.if mc is declining, atc must also be declining.
14) price is constant or given to the individual firm selling in a purely competitive
market because:
a.the firm’s demand curve is downsloping.
b.of product differentiation reinforced by extensive advertising.
c.each seller supplies a negligible fraction of total supply.
d.there are no good substitutes for its product.
15) answer the next question(s) on the basis of the following five data sets wherein it is
assumed that the variable shown on the left is the independent variable and the one on
the right is the dependent variable. assume in graphing these data that the independent
variable is shown on the horizontal axis and the dependent variable on the vertical axis.
refer to the above data sets. the vertical intercept is positive for:
a.all five data sets.
b.data sets 1 and 3 only.
c.data sets 1, 3, and 5 only.
d.data set 2 only.
16) Usury laws:
A.allocate funds from low-productivity to high-productivity investments.
B.establish a legal ceiling on interest rates.
C.make more funds available to low-income borrowers.
D.create a surplus of loanable funds.
17) The economist who advocated a single tax on land was:
A.Adam Smith.
B.John Maynard Keynes.
C.Henry George.
D.Milton Friedman.
18) As distinct from reductions in the price level, reductions in the rate of inflation are
referred to as:
A.dollar depreciation.
B.stagflation.
C.deflation.
D.disinflation.
19) the world trade organization (wto):
a.sets tariffs to balance international trade among nations.
b.is the successor to gatt.
c.is better known as the european union.
d.sets exchange rates to balance international trade among nations.