1) introduction of the verson stamping machine helped firms in the automobile
industry:
a.eliminate diminishing returns in production.
b.achieve greater economies of scale.
c.reach their minimum efficient scale at a lower level of production.
d.shift their avc, atc, and mc curves upward.
2)
refer to the above graphs. an increase in an economy’s labor productivity would:
a.move the economy away from point a and toward point b.
b.move the economy away from point b and toward point a.
c.shift curve ab to cd
d.shift curve cd to ab.
3) a nation’s true gain from international trade is:
a.increased employment in export industries.
b.an overall increase in output obtained through specialization and exchange.
c.added technological knowledge.
d.the tariff revenue that goes to the national treasury.
4)
curve (1) in the above diagram is a purely competitive firm’s:
a.total cost curve.
b.total revenue curve.
c.marginal revenue curve.
d.total economic profit curve.
5)
Refer to the above diagrams. Other things equal, curve B will shift upward when:
A.the level of GDP increases.
B.the interest rate increases.
C.curve A shifts to the left.
D.curve A shifts to the right.
6) with a downsloping demand curve and an upsloping supply curve for a product, a
decrease in resource prices will:
a.increase equilibrium price and quantity.
b.decrease equilibrium price and quantity.
c.decrease equilibrium price and increase equilibrium quantity.
d.increase equilibrium price and decrease equilibrium quantity.
7) in which of the following instances will total revenue decline?
a.price rises and supply is elastic
b.price falls and demand is elastic
c.price rises and demand is inelastic
d.price rises and demand is elastic
8) use the following table for a hypothetical single-product economy.
refer to the above data. real gdp in year 3 is:
a.$100.
b.$450.
c.$225.
d.$150.
9) Assume that the quantity of a certain type of farmland is 300,000 acres and the
demand for this land is that given in the table below.
(a)What will be the economic rent and how much land will be rented?
(b)If the productivity of the land decreases such that 200,000 less acres are demanded at
each price, what will the economic rent be and how much land will be supplied?
(c)Given the new demand schedule in (b), if landowners were taxed at a rate of $50 per
acre for their land, what would be the pure rent on this land after taxes and how many
acres would be rented?
10) the fundamental invention underpinning the recent productivity acceleration is the:
a.microchip.
b.fuel cell.
c.internet.
d.personal computer.
11) The general rule for hiring any input (say, labor) in the profit-maximizing amount is
MRC = MRP. This rule takes the special form W = MRP (where W is the wage rate)
when the:
A.labor supply curve is upsloping.
B.supply of labor is inelastic.
C.firm is hiring labor under purely competitive conditions.
D.firm is hiring labor under imperfectly competitive conditions.
12) an industry comprised of 40 firms, none of which has more than 3 percent of the
total market for a differentiated product is an example of:
a.monopolistic competition.
b.oligopoly.
c.pure monopoly.
d.pure competition.
13) suppose that gamma is an advanced industrial country and omega is a developing
nation. omega will gain the most from having some of its people emigrate to gamma if:
a.omega is currently experiencing full employment.
b.the most skilled workers emigrate.
c.omega currently suffers from high unemployment and the unemployed emigrate.
d.the costs to emigrate to gamma are high.