1) A deficit on the current account:
A.normally causes a surplus on the capital and financial account.
B.normally causes a deficit on the capital and financial account.
C.has no relationship to the capital and financial account.
D.means that a nation is making international transfers.
2)
The diagram shows the short-run average total cost curves for five different plant sizes
of a firm. If in the long run the firm should produce output 0x, it should do it with a
plant of size:
A.#4
B.#3
C.#2
D.#1
3) Other things being equal, the elasticity of demand for labor will be greater the:
A.Smaller the proportion of total costs accountable for by labor costs
B.Smaller the elasticity of demand for the product it produces
C.Larger the number of close substitute resources available
D.More rapid the decline in its marginal productivity
4) If a prejudiced white employer behaves as if there is a disutility from hiring an
African-American worker, then this disutility is measured by the:
A.Employment coefficient
B.Discrimination coefficient
C.Occupational coefficient
D.Affirmative action coefficient
5) An increase in the quantity of hybrid cars supplied would be caused by which of the
following?
A.An increase in the demand for hybrid cars
B.A decrease in the demand for hybrid cars
C.Higher prices of car batteries
D.Lower prices for gasoline
6) Total governmental purchasesfederal, state, and local combinedaccounted for about
what percentage of domestic output in 2012?
A.35 percent.
B.20 percent.
C.10 percent.
D.5 percent.
7) Cuba is a command economy that suffered a decline in economic growth because of
a cut in the aid provided by the former Soviet Union when the latter collapsed. As a
consequence, Cuba:
A.Experienced an outward shift of its production possibilities curve
B.Experienced an inward shift of its production possibilities curve
C.Moved from one point to another along its existing production possibilities curve
D.Went to a point inside its production possibilities curve
8) Assume a round of golf requires four hours of leisure time, and attending a concert
requires two hours. If the price of a round of golf is $40 and the price of a concert is
$80, ceterisparibus, Joe will play:
A.Golf but not attend concerts, since golf is cheaper
B.Golf twice as often as he attends concerts
C.Less golf whenever he receives a large raise
D.Relatively less golf and attend relatively more concerts whenever his leisure time
becomes more scarce
9) Monopolistically competitive industries are inefficient because:
A.they realize diseconomies of scale.
B.advertising costs retard technological advance and product development.
C.they are overpopulated with firms whose plants are underutilized.
D.monopolistically competitive sellers engage in misleading advertising.
10) The concept of investment in human capital indicates that:
A.union workers are better educated and more productive than nonunion workers.
B.expenditures on education can be explained in essentially the same way as
expenditures on machinery and equipment.
C.worker productivity correlates negatively with annual earnings.
D.the level of education is unrelated to the level of one’s income.