1) “Remittances” occur when:
A.two countries send immigrants to each other in approximately equal numbers.
B.physical capital flows into a country that has lost labor due to migration.
C.immigrants send financial payments back to family in their country of origin.
D.migrants return to their home country.
2) The largest single share of all income earned by Americans consists of:
A.wages and salaries.
B.interest.
C.rents.
D.corporate profits.
3) Major Internet-related firms such as Google, Apple, Amazon, Microsoft, and
Facebook each has an area of the market that it dominates. Which of the following is
true about their interaction in the market?
A.They tend to act independently, paying little attention to what the other firms do.
B.They collude so that each firm retains a near-monopoly in a particular sector without
facing threats from the other major firms.
C.They behave according to a price leadership model, with each firm taking a
leadership role in the particular sector it dominates.
D.They compete fiercely as each looks for ways to increase profits by expanding into
rivals’ markets.
4) Harvey quit his job at State University where he earned $45,000 a year. He figures
his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To
start the business, he cashed in $100,000 in bonds that earned 10 percent interest
annually to buy a software company, Extreme Gaming. In the first year, the firm sold
11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs
of production, packaging, marketing, employee wages and benefits, and rent on a
building.
Refer to the above information. The implicit costs of Harvey’s firm in the first year
were:
A.$50,000
B.$60,000
C.$100,000
D.$150,000
5) If the minimum efficient scale (MES) in an industry is 20 percent of the total
consumption of a product, how many MES plants could be supported profitably in that
industry?
A.5
B.10
C.20
D.100
6) Answer the question on the basis of the following cost data:
Refer to the data. The average total cost of producing 3 units of output is:
A.$14.
B.$12.
C.$13.50.
D.$16.
7) The following data represent a personal income tax schedule. Answer the question on
the basis of this information.
Refer to the table above. The average tax rate at the $60,000 level of income is:
A.10.0 percent
B.11.6 percent
C.15.0 percent
D.20.8 percent
8) Approximately how many people became permanent legal residents of the United
States in 2011?
A.1,062,000.
B.854,000.
C.720,000.
D.251,000.
9) In terms of individual nations, the largest U.S. trade deficit is with:
A.Japan.
B.Mexico.
C.China.
D.Canada.
10) How does government’s power to coerce behavior tend to reduce private-sector
risk?
A.By enforcing contracts and discouraging illegal behavior that threatens private
property.
B.By guaranteeing that the government will financially cover any losses by
private-sector firms.
C.By strictly regulating the allocation of most property resources in the economy.
D.The coercive power of government only increases private-sector risk.
11) Allocative inefficiency happens in a monopoly because at the profit-maximizing
output level:
A.P> ATC
B.P> MR
C.P> MC
D.P> AVC