1) ticket scalping implies that:
a.event sponsors have established ticket prices at above-equilibrium levels.
b.an event is not likely to be sold out.
c.event sponsors have established ticket prices at below-equilibrium levels.
d.the demand for tickets has fallen between the time tickets were originally sold and the
event takes place.
2) Kara and Kyle are competing Sockeye Salmon fishers. Both have been allocated
ITQs that limit their catch to 2,000 tons of Sockeye Salmon each. Kara’s cost per ton is
$8; Kyle’s cost per ton is $12.
Refer to the information above. If the market price of Sockeye Salmon is $15 per ton,
what is the minimum amount Kara would have to offer Kyle to convince him to sell
Kara his ITQs?
A.$3.
B.$4.
C.$5.
D.$7.
3) economists:
a.use both the economic perspective and the scientific method.
b.use the economic perspective but not the scientific method.
c.make positive economic statements, but not normative economic statements.
d.reject theorizing as being impractical.
4) at the equilibrium price:
a.quantity supplied may exceed quantity demanded or vice versa.
b.there are no pressures on price to either rise or fall.
c.there are forces that cause price to rise.
d.there are forces that cause price to fall.
5) ticket scalping is likely to:
a.produce a less interested audience.
b.reduce the well-being of ticket sellers.
c.reduce the well-being of ticket buyers.
d.produce a more interested audience.
6) The capricious universe view indicates that:
A.in the long run “acts of God” have contained population growth and thus contributed
to economic development.
B.DVCs will obtain biological and chemical weapons and force the redistribution of
world wealth.
C.there is little or no correlation between one’s efforts and the rewards he or she
receives.
D.international and civil wars have been the primary impediment to growth.
7) which of the following is not economic investment?
a.the purchase of a drill press by the ajax manufacturing company
b.the purchase of 100 shares of at&t by a retired business executive
c.construction of a suburban housing project
d.the piling up of inventories on a grocer’s shelf
8) which of the above diagrams illustrate(s) the effect of a decrease in incomes on the
market for secondhand clothing?
a.a and c
b.a only.
c.b only.
d.c only.
9) unanticipated inflation:
a.reduces the real burden of the public debt to the federal government.
b.hurts borrowers and helps lenders.
c.hurts people whose sole source of income is from social security benefits.
d.helps savers.
10) in moving along a stable demand curve which of the following is not held constant?
a.the price of the product for which the demand curve is relevant.
b.price expectations.
c.consumer incomes.
d.the prices of complementary goods.
11) Which of the following was not a contributing cause of the decline in investment
and thus the recessionary expenditure gap occurring during the U.S. recession of 2001?
A.overcapacity in major industries
B.pessimism relating to the stock market crash
C.the collapse of numerous Internet-related start-up firms
D.low interest rates
12) Answer the next question(s) on the basis of the following list of assets:
1> Large ($100,000 and over) time deposits
2> Noncheckable savings deposits
3> Currency (coins and paper money)
4> Small (under $100,000) time deposits
5> Stock certificates
6> Checkable deposits
7>Money market deposit accounts
8>Money market mutual fund balances held by individuals
9>Money market mutual fund balances held by businesses
Refer to the above list. The M2 definition of money comprises:
A.items 1, 2, 3, and 6.
B.items 3, 4, 5, and 6.
C.items 2, 3, 4, 6, 7, and 8.
D.items 1, 2, 3, and 4.
13) Differences in production efficiencies among nations in producing a particular good
result from:
A.different endowments of fertile soil.
B.different amounts of skilled labor.
C.different levels of technological knowledge.
D.all of these.
14) If the real GDP of a DVC increases from $600 billion to $630 billion and its
population increases from 200 million to 216 million, its real per capita GDP will have:
A.increased by about $83.
B.decreased by about $83.
C.remained unchanged.
D.decreased by about $19.
15) between 1950 and 2007, u.s. real gdp per capita grew at an average annual rate of
about:
a.5.5 percent.
b.4.2 percent.
c.3.5 percent.
d.2.3 percent.
16) if the demand curve for product b shifts to the right as the price of product a
declines, then:
a.both a and b are inferior goods.
b.a is a superior good and b is an inferior good.
c.a is an inferior good and b is a superior good.
d.a and b are complementary goods.
17) The following consolidated balance sheet of the commercial banking system.
Assume that the reserve requirement is 20 percent. All figures are in billions and each
question should be answered independently of changes specified in all preceding ones.
Refer to the above data. Suppose the Fed wants to reduce the money supply by $200
billion to drive up interest rates and dampen inflation. To accomplish this it could
increase the reserve requirement from 20 percent to:
A.22 percent.
B.25 percent.
C.30 percent.
D.33 percent.