1) When gasoline at $3.60/gallon looks relatively cheap after a period of $5-a-gallon
gas, that’s an illustration of the:
A.Planning fallacy
B.Confirmation bias
C.Framing effect
D.Availability heuristic
2) Entrepreneurs are those people who are:
A.Their own bosses
B.Executive officers of corporations
C.Salaried managers
D.Working for research institutes
3) ACME Corporation used to produce $50 worth of goods (in year 2000 dollars) per
million BTUs used. Now it produces $60 worth of goods (in year 2000 dollars) per
million BTUs. Based on this, we can conclude:
A.nothing about ACME’s energy efficiency.
B.that ACME’s energy efficiency has declined.
C.that ACME’s energy efficiency has improved.
D.that ACME is using a single energy source and achieving economies of scale in
production.
4) Autos and chemicals are in million of units in the following production possibilities
tables:
The data in the tables above suggest that production in:
A.Germany is subject to increasing opportunity costs and the United States to constant
opportunity costs
B.The United States is subject to increasing opportunity costs and Germany to constant
opportunity costs
C.Both Germany and the United States are subject to constant opportunity costs
D.Both Germany and the United States are subject to increasing opportunity costs
5) Average per capita water consumption in the United States was approximately how
many gallons per day in 2005?
A.440
B.764
C.1,941
D.1,363
6)
Which statement best describes the data in the above table?
A.Between 1970 and 2008, the highest 20 percent of households gained a larger share
of total income at the expense of the lowest 80 percent
B.Between 1970 and 2008, the lowest and the highest quintiles gained larger shares of
total income at the expense of the three middle quintiles
C.Between 1970 and 2008, the lowest 40 percent of households gained a larger share of
total income at the expense of the highest 40 percent
D.Between 1970 and 2008, each quintile gained a larger share of total income because
the level of total income increased greatly
7) The very poorest low-income DVCs typically have relatively:
A.low rates of economic growth and relatively high rates of population growth.
B.high rates of economic growth and relatively low rates of population growth.
C.low rates of both population growth and economic growth.
D.high rates of both population growth and economic growth.
8) Health care:
A.is an inferior good.
B.is a normal good.
C.is highly elastic with respect to price.
D.has a price elasticity of demand of 1.
9)
With labor migration, the amount of change in the destination country’s wage rates
depends on the:
A.Original supply of labor in that country
B.Original supply of labor in the country of origin
C.Elasticity of demand for labor in that country
D.Elasticity of demand for labor in the country of origin
10) When diamonds are mined in conflict or war-torn areas, there is:
A.Minimal profit or loss
B.Minimal waste of this resource
C.Strong incentive for conservation
D.Strong incentive for over-mining
11) Approximately what percentage of the U.S. labor force works for U.S. governments
at the federal, state, and local levels (as of 2011)?
A.8
B.13
C.16
D.22
12)
In the above graph, the interest-rate cost-of-funds curve would be the line connecting
points:
A.a, c, and e
B.bc, and e
C.b, c, and d
D.a, c, and d
13) OPEC provides an example of:
A.an unwritten, informal understanding.
B.noncollusive oligopoly.
C.an international cartel.
D.a monopolistically competitive industry.
14)
Refer to the above graph showing the revenue curves for a monopolist. What price
should be charged in order to maximize total revenue?
A.P1
B.P2
C.P3
D.P4
15) Purely competitive industry X has constant costs and its product is an inferior good.
The industry is currently in long-run equilibrium. The economy now goes into a
recession and average incomes decline. The result will be:
A.an increase in output and in the price of the product.
B.an increase in output, but not in the price, of the product.
C.a decrease in the output, but not in the price, of the product.
D.a decrease in output and in the price of the product.