1)
U.S. workers will be attracted to otherwise undesirable work as long as:
A.The compensating wage differential is high enough
B.The compensating wage differential is low enough
C.There are not enough illegal immigrants to fill all of the available jobs
D.There are laws that restrict illegal immigrants from working in the U.S.
2)
Refer to the diagram. The vertical intercept:
A.is 40.
B.is 50.
C.is 60.
D.cannot be determined from the information given.
3) Because of higher gasoline prices, firms using gasoline intensively in the production
or distribution of their goods have experienced:
A.an upward shift in their MC, AVC, and ATC curves.
B.an upward shift in their AFC, AVC, and ATC curves.
C.a downward shift in their MC, AFC, and AVC curves.
D.greater economies of scale.
4) Which of the following is a ‘spin-off firm”?
A.Amazon
B.Yum! Brands
C.McDonald’s
D.Pepsi
5)
6)
Refer to the diagram, in which solid arrows reflect real flows; broken arrows are
monetary flows. Flow (7) might represent:
A.a transfer payment to disabled persons.
B.wage payments to public school teachers.
C.subsidies to corporations to stimulate exports.
D.the U.S. Bureau of Engraving and Printing’s expenditures for paper.
7) Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound
in 2015 and 240 million pounds for $3 per pound in 2016. Based on this information,
we can conclude that the:
A.law of supply has been violated.
B.law of demand has been violated.
C.demand for coffee beans has increased.
D.supply of coffee beans has increased.
8) (Consider This) The story about economist Irving Fisher’s conversation with his
masseuse illustrates that:
A.other things equal, interest rates are higher on smaller loans than on larger loans.
B.interest is a payment required for someone to give up the present use of their money.
C.other things equal, longer-term loans have lower interest rates than shorter-term
loans.
D.real interest rates differ from nominal interest rates.
9) The resource cost falls in a purely competitive industry. This change will result in
a(n):
A.Increase in marginal cost for firms in the industry and an increase in the industry
supply curve
B.Decrease in marginal cost for firms in the industry and a decrease in the industry
supply curve
C.Decrease in marginal cost for firms in the industry and an increase in the industry
supply curve
D.Increase in marginal cost at each output level for firms in the industry and an increase
in the industry supply curve
10) Which market model assumes the least number of firms in an industry?
A.Monopolistic competition
B.Pure competition
C.Pure monopoly
D.Oligopoly
11) The demand for labor would most likely become less inelastic as a result of:
A.A decrease in the elasticity of the demand for the product that the labor produces
B.A decrease in the time for employers to make technological changes or purchase new
equipment
C.A decrease in the proportion of labor costs to total costs
D.An increase in the proportion of labor cost to total costs
12) The website Stickk.com appeals to what concept from behavioral economics to help
people achieve goals?
A.Cognitive therapy.
B.Availability heuristics.
C.Loss aversion.
D.Fairness.
13)
Assuming labor forces of equal size, the production possibilities curves suggest that
workers in West Mudville will have:
A.lower wages than workers in East Mudville before trade but equal wages after trade.
B.higher wages than workers in East Mudville both before and after trade.
C.lower wages than workers in East Mudville both before and after trade.
D.higher wages than workers in East Mudville before trade but lower wages after trade.
14) The marginal revenue product (MRP) of land declines as more land is brought into
use. As a result the:
A.demand curve for land is downsloping.
B.demand curve for land is upsloping.
C.supply curve for land is downsloping.
D.supply curve for land is upsloping.
15) If monopolistically competitive firms in an industry are making an economic profit,
then new firms will enter the industry and the product demand facing existing firms
will:
A.Increase
B.Become less elastic
C.Not be affected
D.Decrease
16) Answer the question on the basis of the data given in the following production
possibilities table:
Refer to the table. For this economy to produce a total output of 3 units of capital goods
and 13 units of consumer goods, it must:
A.achieve economic growth.
B.use its resources more efficiently than the data in the table now indicate.
C.allocate its available resources most efficiently among alternative uses.
D.achieve the full employment of available resources.
17)
Refer to the data. The value for Z is:
A.-5
B.+5
C.-10
D.zero
18)
Refer to the graph above showing the domestic demand and supply curves for a specific
product in a hypothetical nation called Econland. When the world price for this product
is $0.50, Econland will:
A.Import 500 units
B.Import 100 units
C.Import 400 units
D.Export 100 units
19) Ward Planter exclusively grew soybeans in each of the past three years and
currently participates in the marketing loan program of the Food, Conservation, and
Energy Act of 2008. If the “crop price” of soybeans at harvest is less than the
pre-harvest “loan price,” Planter can:
A.sell his crop in the market and receive the difference between the crop price and loan
price as a direct payment from the federal government.
B.take a “crop credit” based on the difference between the crop price and the loan price
and use the credit to reduce federal income taxes owed.
C.receive an “emergency loan” that can be paid back over the following five years.
D.forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy
because the proceeds from the loan exceed the revenues from the sale of the crop in the
market.
20) The industrially advanced nations had an average per capita income in 2010 of
around:
A.$50,000 per person
B.$27,000 per person
C.$39,000 per person
D.$61,000 per person