There are more white persons in the United States living below the poverty line than
African- American persons living below the poverty line.
a. True
b. False
Which of the following is not one of the four broad categories of resources?
a. labor
b. money
c. capital
d. entrepreneurship
e. land
Exhibit 39-1
Given the target price of PT, farmers will receive a total income equal to
a. 0PTBQ2.
b. 0P1CQ2.
c. 0PTAQ3.
d. 0P2EQ1.
Exhibit 3-2
Which of the following would result in a movement from point A on D1 to point B on
D2?
a. There was a decrease in the price of a substitute for good X.
b. There was an increase in the price of a complement to good X.
c. There was a decline in technology in the production of good X.
d. There was an increase in the price of a substitute for good X.
Exhibit 39-1
At the support price of PT, how many units of the good must the government buy and
store?
a. Q1
b. Q3
c. Q1 – Q3
d. Q2 – Q3
If quantity demanded rises by 10 percent as price falls by 4 percent, the price elasticity
of demand equals
a. 0.40.
b. 2.50.
c. 0.04.
d. 14.00.
If the perfectly competitive firm is producing an output level at which price equals
marginal cost, it is
a. earning profits.
b. taking losses.
c. earning normal profit.
d. There is not enough information to answer the question.
Rent-seeking is said to be socially wasteful because
a. the rent seekers compete too fiercely with each other.
b. resources that are used to seek rents don’t end up helping anyone in society.
c. the rent seekers usually end up spending too much to get what they want.
d. resources that are used to seek rents can’t be used to produce goods and services.
e. none of the above
Economists sometimes refer to the resource category land as natural resources.
a. True
b. False
The Sherman Act of 1890
a. made interlocking directorates illegal.
b. set up the Federal Trade Commission (FTC) to deal with “unfair methods of
competition.”
c. made monopolization of trade a misdemeanor.
d. prohibited suppliers from offering special discounts to large chain stores without
offering them to everyone else.
e. empowered the FTC to deal with false and deceptive acts or practices.
Increased productivity in agriculture leads to lower prices for consumers and higher
revenues for farmers.
a. True
b. False
When income rises for the buyers of good X, the ____________ curve for good X will
shift ________________.
a. demand; rightward
b. demand; leftward
c. supply; rightward
d. supply; leftward
e. This question cannot be answered unless we know whether good X is a normal good,
a neutral good, or an inferior good.
Exhibit 20-1
The demand for the good represented by demand curve D1 is
a. inelastic.
b. elastic.
c. unit elastic.
d. perfectly elastic.
e. perfectly inelastic.
Special interest groups are usually
a. well informed on all political issues.
b. well informed on all economic issues.
c. well informed on issues of interest to them.
d. not well informed on any issues, but appear to be.