1) Which of the following would be a significant cause of income inequality in the
United States?
A.Housing
B.Discrimination
C.In-kind transfers
D.Social Security
2) The U.S. Department of Agriculture’s productivity index in terms of farm output per
unit of farm labor had a value of 10 in 1950. By 2009, the value of the productivity
index was close to:
A.30
B.80
C.100
D.120
3) The first, second, and third workers employed by a firm add 24, 18, and 9 units to
total product respectively. Therefore, we can conclude that:
A.marginal product of the third worker is 9.
B.the third worker has to work with poorer-quality tools and raw materials.
C.the firm will not want to hire more than three workers.
D.the first worker puts forth more effort than the second and third workers.
4)
5) Answer the question on the basis of the following data:
The data suggest that:
A.a policy of tax reduction will increase consumption.
B.a policy of tax increases will increase consumption.
C.tax changes will have no impact on consumption.
D.after-tax income should be lowered to increase consumption.
6)
Given the indifference map and budget constraint lines above, what is the demand curve
for sweaters?
A.Graph A
B.Graph B
C.Graph C
D.Graph D
7) The graphs below illustrate the market for a product on which an excise tax has been
imposed by government.
Refer to the above graph. What is the amount of the tax per unit of product?
A.$3
B.$5
C.$6
D.$8
8) Use the labor demand data on the left and the labor supply data on the right in
answering the following question:
Refer to the given data. The firm is hiring labor:
A.at a wage rate that exceeds labor’s MRP.
B.under purely competitive conditions.
C.in an imperfectly competitive market.
D.as a monopsonist.
9) If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real
wage will:
A.be unaffected.
B.rise by 4 percent.
C.fall by 4 percent.
D.rise by 8 percent.
10) The World Bank:
A.provides military assistance to those nations interested in improving national defense.
B.makes and guarantees loans for basic development projects such as the construction
of dams, roads, and schools.
C.provides gold for DVCs that want to go on the gold standard.
D.provides short-term loans to DVCs that are incurring balance of payments deficits.