1) Which of the following countries has the highest Gini ratio, as of 2011?
A.Italy.
B.United States.
C.South Africa.
D.Mexico.
2) When the elasticity coefficient for resource demand is less than one, resource
demand is:
A.inelastic.
B.elastic.
C.unit-elastic.
D.infinitely elastic.
3)
Refer to the above graphs. Pizza and beer are the only two goods Jon consumes. The
price of beer is $2.00 per pitcher and pizza is $1.25 per slice. If Jon has only $10 to
spend for the evening, which graph represents the set of possible combinations of beer
and pizza that he can buy?
A.Graph A
B.Graph B
C.Graph C
D.Graph D
4) A situation in which society may not be able to rank its preferences consistently
through paired-choice majority voting is:
A.The fallacy of limited decisions
B.The paradox of voting
C.The median-voter model
D.Political logrolling
5) If demand for a product is increasing, an import tariff is less restrictive than an
import quota.
6) The agricultural market for corn can be characterized as a purely competitive
industry. How might the following events affect the short-run cost curves and output for
a firm in the industry?
(a)A reduction in the cost of fertilizer that is sold to corn farmers.
(b)The Internal Revenue Service (IRS) changes tax laws which increase the amount of
depreciation that farmers can deduct for equipment.
(c)The market price of corn falls.
7) Temporary shutdowns of firms are most widespread when:
A.total fixed costs are rising across the economy.
B.the economy experiences recession.
C.firms have the ability to set prices for their output.
D.wage levels are falling.
8) If a Japanese importer could buy $1000 U.S. for 122,000 yen, the rate of exchange
for one dollar would be:
A.8.19 yen
B.122 yen
C.820 yen
D.1220 yen
9) Answer the question using the following table. Figures are in billions of dollars.
Refer to the above table. If the government passes a usury law that sets the interest rate
4% below the market equilibrium, the interest rate will be:
A.6 percent
B.8 percent
C.10 percent
D.12 percent
10) As a percentage of GDP, U.S. exports are:
A.greater than U.S. imports.
B.about 20 percent.
C.considerably lower than in several other industrially advanced nations.
D.higher than in Canada but lower than in Germany.
11) Firm ABC designs and implements a lower-cost method of producing its product.
This is an example of:
A.product innovation.
B.the inverted U-theory.
C.economies of scale.
D.process innovation.
12) A market-based system of buying and selling human organs for transplant would:
A.reduce total health care spending.
B.create a surplus of organs.
C.increase the quantity of organs available for transplant.
D.reduce the price of organs.
13) At the point where the demand and supply curves for a product intersect:
A.the selling price and the buying price need not be equal.
B.the market may, or may not, be in equilibrium.
C.either a shortage or a surplus of the product might exist, depending on the degree of
competition.
D.the quantity that consumers want to purchase and the amount producers choose to
sell are the same.
14) Responsibility for enforcing the antitrust laws rests:
A.with the Interstate Commerce Commission.
B.with both the Department of Justice and the Federal Trade Commission.
C.solely with the Federal Trade Commission.
D.solely with the Department of Justice.