1) Which of the following Gini ratios indicates the highest degree of income inequality?
A.0.78
B.0.65
C.0.29
D.0.42
2) The basis of the following table shows market shares of firms in hypothetical
industries. Assume these are distinct industries with no buyer-seller relationships or
competition among them.
Refer to the above table. The government would likely challenge a merger between:
A.Firm 1 in Alpha and Firm 6 in Delta.
B.Firms 3 and 4 in Beta.
C.Firms 1 and 2 in Cappa.
D.Firm 4 in Alpha and Firm 3 in Cappa.
3)
Refer to the above graph. Which of the lines in the above diagram represent(s) a
regressive tax?
A.both A and B.
B.D only.
C.C only.
D.B only.
4) Which of the following is an asset on the consolidated balance sheet of the Federal
Reserve Banks?
A.loans to commercial banks
B.Federal Reserve Notes in circulation
C.Treasury deposits
D.reserves of commercial banks
5) An increase in the legal reserve ratio:
A.increases the money supply by increasing excess reserves and increasing the
monetary multiplier.
B.decreases the money supply by decreasing excess reserves and decreasing the
monetary multiplier.
C.increases the money supply by decreasing excess reserves and decreasing the
monetary multiplier.
D.decreases the money supply by increasing excess reserves and decreasing the
monetary multiplier.
6) other things equal, and given that the elasticity of demand of health care is 0.2, a 10
percent increase in income in the united states will increase the quantity of health care
demanded by:
a.2 percent.
b.6-8 percent.
c.10-15 percent.
d.25 percent.
7)
refer to the above diagrams. the price will be _______ and the quantity will be _______
with the industry structure represented by diagram (b) compared to the one represented
in (a).
a.higher; higher
b.higher; lower
c.lower; lower
d.lower; higher
8) the budget line shows:
a.the amount of product a that a consumer is willing to give up to obtain one more unit
of product b.
b.all possible combinations of two goods that can be purchased, given money income
and the prices of the goods.
c.all equilibrium points on an indifference map.
d.all possible combinations of two goods that yield the same level of utility to the
consumer.
9)
refer to the above diagram, in which s1 and d1 represent the original supply and
demand curves and s2 and d2 the new curves. in this market the indicated shift in
supply may have been caused by:
a.an increase in the wages paid to workers producing this good.
b.the development of more efficient machinery for producing this commodity.
c.this product becoming less fashionable.
d.an increase in consumer incomes.
10) The political business cycle refers to the possibility that:
A.incumbent politicians will be reelected regardless of the state of the economy.
B.politicians will manipulate the economy to enhance their chances of being reelected.
C.there is more inflation during Democratic administrations than during Republican
administrations.
D.recessions coincide with election years.
11) Which of the following would call for inpayments to the United States?
A.gold flows into the United States
B.U.S. firms sell insurance to Brazilian shippers
C.U.S. sends foreign aid to developing countries
D.U.S. imports German automobiles
12) some agricultural sub-saharan nations of africa have overfarmed and overgrazed
their land to the extent that significant portions of it have turned into desert. this
suggests that:
a.the concavity of the production possibilities curves of such nations has increased.
b.the production possibilities curves of such nations have shifted inward.
c.the production possibilities curves of such nations have shifted outward.
d.these nations are operating at some point outside of their production possibilities
curves.