1)
Refer to the diagram. Arrows (1) and (3) are associated with:
A.the money market.
B.the resource market.
C.the product market.
D.international trade.
2) Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs
that limit their catch to 2,000 tons of sockeye salmon each. Kara’s cost per ton is $8;
Kyle’s cost per ton is $12.
Refer to the information given. If the market price of sockeye salmon is $15 per ton,
what is the maximum amount Kara would be willing to pay per ton for Kyle’s ITQs?
A.$3.
B.$7.
C.$8.
D.$15.
3) Enterprise managers and workers in the Soviet Union often resisted innovations in
production methods because:
A.production targets were often increased when innovation occurred.
B.there was a chronic shortage of computers.
C.workers could not be reallocated geographically.
D.innovations ordinarily increased dependence on world markets.
4) Since 1900, the relative share of “wages & salaries, plus proprietors’ income” in the
total income earned by Americans in a typical year has been about:
A.20 percent
B.50 percent
C.80 percent
D.95 percent
5) An increase in the demand for health care would most likely result from:
A.Healthier lifestyles
B.An aging population
C.Less health insurance coverage
D.Increased productivity in health care
6) As compared to a purely competitive labor market, in a nonunionized monopsonistic
labor market, wages:
A.and employment will both be lower.
B.will be higher, but employment will be lower.
C.will be lower, but employment will be higher.
D.and employment will both be higher.
7) Which of the following factors had helped maintain the large U.S. trade deficits over
the years?
A.A decline in investment
B.Capital and financial account surpluses
C.A decrease in economic growth
D.An increase in U.S. net exports
8)
Refer to the above graph for a purely competitive firm operating at a loss in the short
run. Which of the following changes in its market would allow the firm to earn positive
profits again?
A.An increase in the market demand
B.An increase in the wages of workers in the industry
C.A decrease in the price of raw materials used by firms in the industry
D.A decrease in the price of the industry’s product
9) In 2001, Microsoft was found guilty of violating:
A.Section 7 of the Clayton Act.
B.Sections 1 and 2 of the Sherman Act.
C.the Federal Trade Commission Act.
D.Section 20 of the Wagner Act.
10) Answer the question on the basis of the following cost data for a firm that is selling
in a purely competitive market.
Refer to the data. If the market price for this firm’s product is $35, it will produce:
A.6 units at a loss of $150.
B.6 units at a loss of $90.
C.9 units at an economic profit of $281.97.
D.8 units at an economic profit of $130.72.
11) The graph depicts a monopolistically competitive firm.
Refer to the above graph. This monopolistically competitive firm is earning economic
profits in the short run and:
A.Will continue to have economic profits in the long run
B.Will earn only normal profits in the long run
C.This will cause its demand curve to shift to the right in the long run
D.This will cause its cost curves to rise in the long run
12) Average fixed cost:
A.equals marginal cost when average total cost is at its minimum.
B.may be found for any output by adding average variable cost and average total cost.
C.graphs as a U-shaped curve.
D.declines continually as output increases.
13) Which of the following best describes economists’ general assessment of the
impacts of offshoring?
A.Offshoring has an overall negative impact on the U.S. economy because of the
significant domestic job losses it causes.
B.Offshoring benefits the U.S. economy by promoting greater specialization and
exchange of goods and services based on comparative advantage.
C.Offshoring provides some cost advantages but generally results in
much-lower-quality goods for consumers.
D.Job losses from offshoring are magnified by job losses in complementary industries.