1) The marginal revenue product of any input is the:
A.cost of an additional unit of that input.
B.added profits resulting from the use of one more unit of that input.
C.additional output resulting from the use of one more unit of that input.
D.additional revenue resulting from the use of one more unit of that input.
2) Which of the following is not considered a legitimate concern of a large public debt?
A.Bankruptcy of the Federal government
B.Disincentives created by higher taxes
C.Crowding-out of private investment
D.Increased income inequality
3) a fixed cost is:
a.associated with any productive resource whose price is fixed.
b.any cost which increases proportionately with output.
c.any cost which a firm would incur even if output was zero.
d.associated with all inputs whose short-run supply is perfectly inelastic.
4)
Refer to the diagram above. Assuming it represents the overall supply of energy, at what
per barrel price of oil does the production of U.S. corn-based ethanol become
economically viable?
A.$40.
B.$50.
C.$60.
D.$70.
5) (Last Word) The final settlement of the United States v. Microsoft case:
A.requires that Microsoft provide technical information to competing companies so
they can develop software programs that work as well with Windows as Microsoft’s
own products.
B.broke up Microsoft into two competing firms.
C.found Microsoft not guilty of violating the Sherman Act.
D.forced Microsoft to sell off its major applications programs such as Word and
PowerPoint.
6) if a purely competitive firm shuts down in the short run:
a.its loss will be zero.
b.it will realize a loss equal to its total variable costs.
c.it will realize a loss equal to its total fixed costs.
d.it will realize a loss equal to its total costs.
7)
Refer to the above diagram where curves (a) through (d) are for five different countries.
Income is equally distributed in:
A.none of the countries shown.
B.country b.
C.countries a and e.
D.country a.
8) the business-to-business (b2b) retrieval of prices of foreign resources via the internet
best illustrates a(n):
a.trade flow.
b.capital and labor flow.
c.financial flow.
d.information flow.
9) The following domestic supply and demand schedules for a product. Suppose that the
world price of the product is $1.
Refer to the above data. With a $1 per unit tariff, the quantities sold by foreign and
domestic producers respectively will be:
A.1 unit and 15 units.
B.7 units and 4 units.
C.11 units and 4 units.
D.indeterminate.
10) (Advanced analysis) Answer the next question(s) on the basis of the following
consumption and investment data for a private closed economy. Figures are in billions
of dollars.
C = 60 + .6Y
I = I0 = 30
Refer to the above data. In equilibrium the level of saving will be:
A.30.
B.26.
C.25.
D.60.
11)
refer to the above diagram. at the profit-maximizing output, average variable cost is:
a.ef
b.fg
c.na
d.ac