1) In saying that the present system of floating exchange rates is managed, we mean
that:
A.countries that allow their exchange rate to move freely will lose their borrowing
privileges with the IMF.
B.the value of any IMF member’s currency can only vary 2 percent from its par value.
C.IMF officials determine exchange rates on a day-to-day basis.
D.the central banks of various countries sometimes buy and sell foreign exchange to
alter undesirable trends in exchange rates.
2) Which of the following statements about The Temporary Assistance for Needy
Families (TANF) is NOT true:
A.It expanded the eligibility for and scope of the nation’s welfare program
B.It is the basic welfare program for low-income families in the U.S.
C.In 1996, it replaced the six-decade old Aid for Families with Dependent Children
(AFDC) welfare program
D.It led to a reduction in the number of welfare recipients and an increase in the
employment rate of single mothers in the years after its adoption
3) Dumping of goods abroad:
A.constitutes a general case for permanent tariffs.
B.may be part of a firm’s price discrimination strategy.
C.may be part of a nation’s strategy to rectify its trade deficit.
D.drives up prices of the dumped goods.
4) Which of the following U.S. Supreme Court cases ruled that only monopolies that
“unreasonably restrain trade” are violating antitrust laws?
A.DuPont Cellophane case of 1956
B.U.S. Steel case of 1920
C.Alcoa case of 1945
D.AT&T case of 1982
5) Suppose that goods A and B are close substitutes. If the price of good A falls, then we
would expect an:
A.Increase in the demand for A and an increase in the quantity of B demanded
B.Increase in the demand for A and a decrease in the quantity of B demanded
C.Increase in the quantity of A demanded and a decrease in the demand for B
D.Increase in the demand for good A as well as for good B
6) The range over which average variable cost is increasing is the same as the range
over which:
A.Marginal cost is decreasing
B.Average fixed cost is increasing
C.Average product is increasing
D.Average product is decreasing
7) Suppose that Marlen Fisher has legal protection against anyone producing and
selling a fishing lure specifically named “MarFish.” This legal protection is most likely
to be a:
A.trademark.
B.restraining order.
C.patent.
D.copyright.
8) In game theory, each player is assumed to have the following, except:
A.Alternative strategies or actions
B.Alternative outcomes or results
C.Alternative payoffs or earnings
D.Alternative partners or co-players
9) If the interest rate is 5%, what is the future value of $5,000 three years from now?
A.$4,310
B.$5,500
C.$5,010
D.$5,788
10) Which of the following is a significant difference in the behavior of the
dictator/proposer between the dictator game and the ultimatum game?
A.The dictator/proposer tends to be more generous in the ultimatum game.
B.The dictator/proposer tends to be more generous in the dictator game.
C.There is no systematic difference in the generosity of the dictator/proposer between
the two games.
D.Dictators/proposers demonstrate more emotion when playing the dictator game.