1) welfare reform in 1996 reversed the trend of growing welfare payments to
immigrants.
2) In percentage terms, many of the 10 most rapidly declining U.S. occupations include
jobs for which capital is readily substitutable for labor.
3) the production possibilities curve shows various combinations of two products that
an economy can produce when achieving full employment.
4) Noncompeting groups of workers are the result of geographic immobilities.
5)
refer to the above diagram. at output c average fixed cost is gf.
6) Because families can afford to have more children, population growth is greater in
the IACs than in the DVCs.
7) The following information. Assume that by devoting all its resources to the
production of X, nation Alpha can produce 40 units of X. By devoting all its resources
to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y.
Refer to the above information. The terms of trade will be at or within the 1X = 11/2Y
to 1X = 2/3Y range.
8) The economic term for a sole employer in a nonunion community is:
A.monopsonist.
B.monopolist.
C.bilateral competitor.
D.bilateral monopolist.
9) if the price of a is $12 and the price of b is $3, the budget line tells us that a
consumer in effect can trade:
a.12 units of a for 3 of b
b.1 unit of a for 4 of b
c.1 unit of a for 3 of b
d.1 unit of b for 4 of a
10) The following 2008 balance of payments statement for Transylvania. All figures are
in billions of dollars.
Refer to the above data. If Transylvania was on a system of freely floating exchange
rates, its balance of payments position would cause the international value of its
currency to depreciate.
11) camille is at the candy store with her grandmother, who offers to buy her $6 worth
of candy. if lollipops are $1 each, and candy bars are $2 each, what combination of
candy can camille’s grandmother buy for her?
a.six lollipops and three candy bars
b.two lollipops and two candy bars
c.three lollipops and two candy bars
d.one lollipop and three candy bars
12) (Last Word) Yale University’s “EPI” stands for:
A.Environmental Protection Index.
B.Ecological Protection Index.
C.Environmental Performance Index.
D.Ecological Performance Index.
13) externalities:
a.relate to costs only.
b.relate to benefits only.
c.relate to both costs and benefits.
d.have been legislated out of existence.
14) The following table in which columns (1) and (2) indicate the transactions demand
(Dt) for money and columns (1) and (3) show the asset demand (Da) for money:
Refer to the above data. If the money supply is $160, the equilibrium interest rate will
be:
A.10 percent.
B.8 percent.
C.6 percent.
D.4 percent.
15) answer the next question(s) on the basis of the following information about a
hypothetical economy:
refer to the above information. if the members of the underground economy are
presently counted as part of the unemployed when in fact they are employed, the
official unemployment rate is overstated by:
a.0 percentage points.
b.2 percentage points.
c.4 percentage points.
d.6 percentage points.
16) fixed costs are associated with:
a.highly adjustable inputs such as labor.
b.both the short run and the long run.
c.the short run only.
d.the long run only.
17) if real gdp rises and the gdp price index has increased:
a.the percentage increase in nominal gdp must have been less than the percentage
increase in the price level.
b.nominal gdp may have either increased or decreased.
c.nominal gdp must have increased.
d. nominal gdp must have fallen.
18) If the marginal propensity to consume in an economy is 0.8, net exports are zero,
and government spending is $33 billion at each level of real GDP, the slope of the
economy’s aggregate expenditures schedule will be:
A..8.
B..2.
C.5.
D..125.
19) if a regulatory commission forces a natural monopoly to charge a price equal to its
marginal cost:
a.the monopoly may incur a loss.
b.resource allocation will be worsened.
c.output will decrease.
d.the firm will earn only a normal profit.
20) suppose that in 2007 ford sold 500,000 mustangs at an average price of $18,800 per
car; in 2008, 600,000 mustangs were sold at an average price of $19,500 per car. these
statements:
a.suggest that the demand for mustangs decreased between 2007 and 2008.
b.suggest that the supply of mustangs must have increased between 2007 and 2008.
c.suggest that the demand for mustangs increased between 2007 and 2008.
d.constitute an exception to the law of demand in that they suggest an upsloping
demand curve.
21) the failure of soviet central planning was reflected in:
a.a declining growth rate.
b.poor quality goods.
c.the failure to provide promised consumer goods.
d.all of these.
22)
In the above diagram, the elimination of discrimination is best represented by:
A.a move from C to E.
B.an inward shift of the production possibilities curve.
C.a move from A to D.
D.a move from E to C
23) Compared with fiscal policy, monetary policy is:
A.quicker and easier to implement.
B.slower and more cumbersome to implement.
C.more dependent on Congressional action.
D.more likely to produce an offsetting net export effect.
24)
25) Explain the problem of adverse selection. How might this problem affect
transactions in the insurance industry?
26) Using the below axes draw a supply and demand graph for land showing it as a free
good.
27) What is the main cause of the uneven distribution of economic growth seen around
the world?
28) Explain the reasoning behind why the long-run aggregate supply curve is vertical.
29) What is the imitation problem resulting from technological advance? How might a
dominant firm respond to the threat from product innovation by a smaller firm?
30) (Consider This) Explain how a reservoir can serve as an analogy for thinking about
a nations capital stock, investment, and depreciation.