1) from the 1970s to 1998, immigrants’ use of the u.s. welfare system was greater
proportionately than the use by natives. this occurred primarily because:
a.the mix of immigrants shifted from relatively skilled to relatively unskilled workers.
b.funding for the u.s. welfare system increased dramatically.
c.changes in u.s. welfare law expanded the availability of welfare to immigrants.
d.immigration from non-english speaking countries increased significantly.
2) State right-to-work laws:
A.permit employers to hire nonunion workers only if union labor is unavailable.
B.prohibit employers from discriminating against minority groups in hiring workers.
C.prohibit unions from discriminating against minority groups in recruiting members.
D.make compulsory union membership (for example, a union shop) illegal.
3)
refer to the above information. over the $9-$7 price range, demand is:
a.perfectly elastic.
b.perfectly inelastic.
c.elastic.
d.inelastic.
4) the pure monopolist’s demand curve is:
a.identical with the industry demand curve.
b.of unit elasticity throughout.
c.perfectly inelastic.
d.perfectly elastic.
5) the major objective of medicaid is to:
a.provide health care services to the aged.
b.provide health care services to those receiving public assistance.
c.contain rising health care costs.
d.make a basic health care package available to all americans.
6) If aggregate expenditures exceed GDP in a private closed economy:
A.leakages will exceed injections.
B.planned investment will exceed saving.
C.unplanned investment in inventories will occur.
D.saving will exceed planned investment.
7) refer to the above diagram. the slope of curve zz at point c is approximately:
a.-4
b.-2
c.-22/5
d.+3
8)
over the $4-$2 price range, the elasticity coefficient of supply is:
a.1
b.zero.
c.less than 1
d.greater than 1
9) The equation of exchange suggests that, if the supply and velocity of money remain
unchanged, an increase in the physical volume of goods and services produced will
cause:
A.the unemployment rate to rise.
B.the Federal Reserve Banks to sell securities in the open market.
C.a decline in the price level.
D.an automatic budget deficit.
10) The following information about the cost ratios for two products-fish (F) and
chicken (C)-in countries Singsong and Harmony. Assume that production occurs under
conditions of constant costs and these are the only two nations in the world.
Singsong: 1F = 2C
Harmony: 1F = 4C
Refer to the above information. In Singsong the domestic real cost of each chicken:
A.is 1/2 a fish.
B.is 2 fish.
C.increases with the level of fish caught.
D.decreases with the level of fish caught.
11)
refer to the above table. suppose that demand is represented by columns (3) and (2) and
supply is represented by columns (3) and (5). if the price were artificially set at $9, a:
a.the market would clear.
b.a surplus of 20 units would occur.
c.a shortage of 20 units would occur.
d.demand would change from columns (3) and (2) to columns (3) and (1).
12) a price index is:
a.a comparison of the price of a market basket from a fixed point of reference.
b.a comparison of real gdp in one period relative to another.
c.the cost of a market basket of goods and services in a base period divided by the cost
of the same market basket in another period.
d. a ratio of real gdp to nominal gdp.
13) Assume the Apex Manufacturing Company is purely competitive in both the hiring
of labor and in the sale of its product. Apex’s labor demand curve would be:
A.vertical at the current level of employment.
B.horizontal at the “going” wage rate.
C.upward sloping.
D.downward sloping.
14) Besides banks and thrifts, what other types of financial services firms exist and
what do they do?
15) How is the Federal funds rate established? What role does the Federal Reserve
play?
16) State the predictions about world population growth offered by demographers and
explain the basis on which they are made.
17) Explain two ways inefficiencies associated with majority voting may get resolved.
18) Business will always choose the least safe work environment to cut costs. Evaluate.
19) Why would private business be considered more efficient than public agencies?