1) In recent years, the industrially advanced nations as a group have provided foreign
aid amounting to about what percentage of their aggregate outputs?
A.0.25 percent.
B.0.7 percent.
C.1 percent.
D.2 percent.
2) In a sequential game, the first mover into a new market:
A.always earns a greater payoff than the second mover.
B.may discourage the second mover from entering that market.
C.only enters when there is a dominant strategy.
D.guarantees that a Nash equilibrium will result.
3) Which of the following statements is true of price discrimination?
A.Successful price discrimination will provide the firm with lower total profits than if it
did not discriminate
B.Successful price discrimination will provide the firm with more profit than if it did
not discriminate
C.Successful price discrimination will generally result in a lower level of output than
would be the case under a single-price monopoly
D.Successful price discrimination occurs when there are differences in the costs of
producing for different groups of buyers
4) In the following question you are asked to determine, other things equal, the effects
of a given change in a determinant of demand or supply for product X upon (1) the
demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X.
Refer to the given information. An increase in the prices of resources used to produce X
will:
A.increase S, increase P, and increase Q.
B.increase D, increase P, and increase Q.
C.decrease S, decrease P, and decrease Q.
D.decrease S, increase P, and decrease Q.
5) The question is based on the following table showing the expected rate of return,
R&D spending, and interest-rate cost-of-funds for a hypothetical firm.
Refer the above data. If interest-rate cost-of-funds rose to 11 percent, the optimal
amount of R&D spending would be:
A.$35 million
B.$45 million
C.$55 million
D.$65 million
6) A reason for placing special emphasis on capital accumulation in developing
countries is the high:
A.
B.Productivity of workers in DVCs
C.Marginal benefits of capital goods
D.
7) Websites and organization that use a “bet-against-yourself” system of encouraging
people to work towards specific goals in the future are helping people deal with:
A.Framing effects
B.Mental accounting
C.Anchoring
D.Time inconsistency
8) In moving along a demand curve, which of the following is not held constant?
A.The price of the product for which the demand curve is relevant.
B.Price expectations.
C.Consumer incomes.
D.Prices of complementary goods.
9)
Refer to the game theory matrix where the numerical data show the profits resulting
from alternative combinations of advertising strategies for Ajax and Acme. Ajax’s
profits are shown in the upper right part of each cell; Acme’s profits are shown in the
lower left. Without collusion, the outcome of the game is cell:
A.A
B.B
C.C
D.D
10) Which of these sets of nations are considered high-income economies?
A.Brazil, Thailand, and South Africa.
B.China, India, and Russia.
C.Canada, Switzerland, and France.
D.United States, South Korea, and Mexico.