1) Which of these sets of nations are low-income developing nations?
A.Brazil, Australia, and South Africa.
B.Uganda, Madagascar, and Burkina Faso.
C.Canada, Switzerland, and France.
D.Germany, South Korea, and Mexico.
2) In the long run a firm will choose a plant size that has the:
A.Minimum of average fixed costs
B.Capacity to produce the largest quantity of the product
C.Minimum average total cost of producing the target level of output
D.Maximum level of resource use per unit of the total product of output
3) If the equation y = 15 – 4x was plotted, the:
A.vertical intercept would be -4.
B.vertical intercept would be +4.
C.vertical intercept would be +9.
D.slope would be -4.
4) Which of the following statements applies to a purely competitive producer?
A.It will not advertise its product.
B.In long-run equilibrium it will earn an economic profit.
C.Its product will have a brand name.
D.Its product is slightly different from those of its competitors.
5)
In the diagram, the vertical intercept and slope are:
A.4 and -11/3 respectively.
B.3 and -11/3 respectively.
C.3 and +3/4 respectively.
D.4 and +3/4 respectively.
6) The electricians’ union is a good example of:
A.exclusive unionism.
B.an industrial union.
C.how unions can simultaneously increase wage rates and employment by increasing
the demand for labor.
D.inclusive unionism.
7) The Smoot-Hawley Tariff Act of 1930 is notorious for which of the following
reasons?
A.It spawned a global trade war
B.It triggered the Great Depression
C.It favored imports over domestic producers
D.It is a classic example of the dumping argument
8) Expanding the supplies of raw materials, capital equipment, effective labor, and
technological knowledge will:
A.Shift outward the production possibilities curve for a nation
B.Increase the demand for and decrease the supply of productive resources
C.Make a nation less productive because of the need to coordinate the increased
quantity of resources
D.Lead to increased population growth that will decrease the per capita growth in a
nation
9) A nation can produce two products: steel and wheat. The table below is the nation’s
production possibilities schedule:
Refer to the above table. If the nation uses all of its resources to produce only wheat,
then its production combination will be:
A.A
B.B
C.E
D.F
10)
Refer to the above graphs. The long-run equilibrium for a monopolistically competitive
firm is represented by graph:
A.A
B.B
C.C
D.D
11)
Refer to the graph. Which one of the following would cause a move from point b on
short-run average total cost curve ATC1 to point e on short-run average cost curve
ATC2?
A.Diminishing marginal returns.
B.An increase in the wage rate.
C.A decrease in the wage rate.
D.Increasing marginal returns.
12) Government purchases and transfer payments:
A.differ because the latter absorb resources while the former do not.
B.differ because the former absorb resources while the latter do not.
C.are alike because both are more inflationary than private spending.
D.are alike because both absorb resources.
13)
Refer to the diagram. At output level Q average fixed cost:
A.is equal to EF.
B.is equal to QE.
C.is measured by both QF and ED.
D.cannot be determined from the information given.