1) Answer the question on the basis of the following production possibilities tables for
two countries, North Cantina and South Cantina:
Refer to the tables. The opportunity cost of the fifth unit of capital goods:
A.is higher in North Cantina than in South Cantina.
B.is the same in North Cantina and South Cantina.
C.is lower in North Cantina than in South Cantina.
D.cannot be determined from the information provided.
2)
Refer to the graphs above for a purely competitive market in the short run. The graphs
suggest that in the long run, as automatic market adjustments occur, the demand curve
facing the individual firm will:
A.Shift up
B.Shift down
C.Not shift
D.Slope downward
3) Tying agreements:
A.establish common boards of directors for previously competing firms.
B.obligate a purchaser of product X to also buy product Y from the same seller.
C.allow manufacturers to specify the retail prices of their products.
D.prohibit firms from selling their products outside of specified geographic areas.
4)
Refer to the table. If demand is represented by columns (3) and (2) and supply is
represented by columns (3) and (5), equilibrium price and quantity will be:
A.$10 and 60 units.
B.$9 and 50 units.
C.$8 and 60 units.
D.$7 and 50 units.
5) Changes in the equilibrium interest rate will:
A.affect both the size of the domestic output and the allocation of capital goods among
industries.
B.affect the size of the domestic output, but not the allocation of capital goods among
industries.
C.affect the allocation of capital goods among industries, but not the size of the
domestic output.
D.have no perceptible effect on either the size of the domestic output or the allocation
of capital goods among industries.
6) Suppose the MRP of a firm’s 12th worker is $22 and the worker’s marginal wage cost
is $16. We can say with certainty that the firm:
A.is hiring labor in a competitive labor market at a wage rate of $16.
B.is hiring labor in a monopsonistic labor market.
C.will find it profitable to hire fewer workers.
D.will find it profitable to hire more workers.
7) From 1950 to 2011, the ratio of real GDP to energy consumption in the United States
has been:
A.Relatively constant
B.Slowly decreasing
C.Decreasing steeply
D.Rising significantly
8) Which of the following is a key difference between the dictator game and the
ultimatum game?
A.The dictator game is played with real money; the ultimatum game is played with
hypothetical money.
B.In the dictator game, one person has total control over the split; in the ultimatum
game, both players have to agree to the split.
C.Results of dictator game experiments reveal that people don’t care about fairness;
results of the ultimatum game indicate that they do care.
D.There is no difference between them; they are simply different names for the same
game.
9)
Refer to the diagrams, which pertain to monopolistically competitive firms. Short-run
equilibrium entailing economic loss is shown by:
A.diagram a only.
B.diagram b only.
C.diagram c only.
D.both diagrams a and c.
10) A firm is observed using 15 units of input X when the price of X is $2. If the price
of X increases to $4, the firm uses only 6 units of it. What is the price elasticity of
demand for input X? (Use the simple formula for percent change: [(new# – old#)/old#]
x 100%)
A.1/2 = 0.5
B.3/5 = 0.6
C.5/3 = 1.67
D.2
11) Assume an exchange rate of $1 = .60 British pounds. A U.S. product sells in Britain
for 18 pounds. By what percentage will dollar revenues change if the dollar price of a
pound falls to .50 pounds?
A.-20 percent
B.-16 percent
C.+16 percent
D.+20 percent
12) In what type of business do the owners bear no personal financial responsibility for
the company’s debts and obligations?
A.Partnerships.
B.Corporations.
C.Sole proprietorships.
D.In all of the businesses listed in the other answers.
13) A purely competitive seller should produce (rather than shut down) in the short run:
A.only if total revenue exceeds total cost.
B.only if total cost exceeds total revenue.
C.if total revenue exceeds total cost or if total cost exceeds total revenue by some
amount less than total fixed cost.
D.if total cost exceeds total revenue by some amount greater than total fixed cost.
14) The two main types of managed care organizations are:
A.U.S. veterans’ hospitals and university health clinics.
B.health maintenance organizations (HMOs) and private nursing homes.
C.health maintenance organizations (HMOs) and preferred provider organizations
(PPOs).
D.preferred provider organizations (PPOs) and nonprofit hospitals.
15) In 2011, the percentage of the total U.S. population that lived in poverty was
approximately:
A.5 percent
B.10 percent
C.15 percent
D.20 percent
16) Which of the following is characteristic of a regulated natural monopoly?
A.Extensive economies of scale.
B.The wasteful duplication of capital facilities in the event of competition.
C.The provision of an essential service.
D.All of these.
17) The following table contains hypothetical data for the 2012 U.S. balance of
payments. Answer the question on the basis of this information. All figures are in
billions of dollars.
Refer to the given data. The U.S. balance on current account is a:
A.$40 billion surplus.
B.$25 billion deficit.
C.$25 billion surplus.
D.$30 billion deficit.
18) Melanie and Oli are competing Pacific halibut fishers. Both have been allocated
ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie’s cost per ton is
$20; Oli’s cost per ton is $28.
Refer to the information given. If the market price of Pacific halibut is $40 per ton,
what is the minimum amount per ton that Melanie would have to offer Oli to convince
him to sell Melanie his ITQs?
A.$8.
B.$10.
C.$20.
D.$12.
19) A total fertility rate of 1.0 will cause the:
A.population to remain stable.
B.population to double in one generation.
C.population to collapse in one generation.
D.next generation to be half the size of the current generation.