1) Assume the total real output of a developing country increases from $8 billion to
$8.2 billion while its population expands from 14 to 15 million people from one year to
the next. Over the year, per capita income has:
A.Increased by $25 per person
B.Decreased by $25 per person
C.Increased by $533 per person
D.Decreased by $533 per person
2) The Economist magazine’s Commodities Price Index tracks the prices of the most:
A.important finished goods that are traded internationally.
B.important minerals that are traded internationally.
C.important productive resources that are traded internationally.
D.heavily traded agricultural-based products.
3)
Refer to the diagram for a purely competitive producer. The lowest price at which the
firm should produce (as opposed to shutting down) is:
A.P1.
B.P2.
C.P3.
D.P4.
4) A progressive tax is such that:
A.tax rates are higher the greater one’s income.
B.the same tax rate applies to all income receivers, so that the rich pay absolutely more
taxes than the poor.
C.entrepreneurial income is exempt from taxation.
D.the revenues it yields are spent on transfer payments.
5) If an exclusive union is successful in restricting the supply of labor, the:
A.wage rate will rise.
B.quantity of labor demanded will rise.
C.number of job opportunities in the firm or industry will increase.
D.demand for labor curve will shift leftward.
6) Which of the following is a capital resource?
A.A computer programmer.
B.A corporate bond issued by a computer manufacturer.
C.Silicon (sand) used to make computer chips.
D.A piece of software used by a firm.
7) In which of the following U.S. occupations is the rate of unionization the lowest?
A.Transportation workers.
B.Teachers.
C.Legal workers.
D.Sales workers.
8) About what percentage of the U.S. population had no health insurance for the entire
year in 2011?
A.7 percent
B.16 percent
C.25 percent
D.33 percent
9)
Refer to the diagram for the corn market. A price support of B will cause a transfer from
taxpayers to farmers of:
A.0BKL.
B.MAFG.
C.0MFG.
D.LKCG.
10) Given the products below and the events that affect them, indicate what happens to
demand or supply, and the equilibrium price and quantity in a competitive market.
Identify the determinant of demand or supply that causes the shift.
(a)Blue jeans. The wearing of blue jeans becomes less fashionable among consumers.
(b)Computers. Parts for making computers fall in price because of improvements in
technology.
(c)Lettuce. El Nino produces heavy rains that destroy a significant portion of the lettuce
crop.
(d)Chicken. Beef prices rise because severe winter weather reduces cattle herds.
11)
Graph I above shows E.T.’s equilibrium choices of beer and candy for three different
prices of beer. (I1, I2, and I3 are indifference curves. The price of a package of candy is
constant at $1.00.) Letting PC represent the price of beer, which demand curve (d)
above is consistent with graph I?
A.Graph A
B.Graph B
C.Graph C
D.Graph D
12) Since 1950, farm productivity has:
A.advanced twice as fast as in nonfarm sectors of the economy.
B.lagged behind productivity advances in the nonfarm economy.
C.almost exactly matched productivity increases in the rest of the economy.
D.doubled.
13) The cross elasticity of demand for product X with respect to the price of product Y
is -1.2. It can be inferred that X and Y are:
A.Substitute products
B.Complementary products
C.Luxury products
D.Unrelated products