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1) Process innovation leads to technological advance because it:
A.Decreases total product
B.Increases average total costs
C.Decreases productive efficiency
D.Increases productive efficiency
2) Answer the question on the basis of the following information for a public good. Pa
and Pb are the prices that individuals A and B are willing to pay for the last unit of a
public good, rather than do without it. These people are the only two members of
society.
Refer to the data. The collective willingness of this society to pay for the second unit of
this public good is:
A.$2.
B.$4.
C.$6.
D.$8.
3) The equilibrium interest rate:
A.allocates the available supply of loanable funds to investment projects that have high
enough rates of return to justify the borrowing.
B.rises when the supply of loanable funds increases.
C.is the price paid for the use of any resource.
D.affects the size of total output but not the composition of that output.
4)
Refer to the diagram. Which of the following would be consistent with a decrease in
racial prejudice against African Americans and thus a decrease in the discrimination
coefficients of employers, taken as a group?
A.A shift in the labor demand curve from D3 to D2.
B.An increase in the African-American wage rate from W1 to W2.
C.A reduction in African-American employment from Q3 to Q2.
D.A decrease in the African-American wage rate from W2 to W1.
5) The market system's answer to the fundamental question "Who will get the goods
and services?" is essentially:
A."Those willing and able to pay for them."
B."Those who physically produced them."
C."Those who most need them."
D."Those who get utility from them."
6) Other things equal, the interest rate on a loan will be larger:
A.The less the risk involved
B.The larger the amount of the loan
C.The longer the length of the loan
D.If loan interest is exempt from taxation
7)
Refer to the table, in which the values for columns (2) through (5) are in acres. If the
relevant columns are (1), (2), and (3), land rent will be:
A.$100 per acre.
B.$200 per acre.
C.$300 per acre.
D.$400 per acre.
8) Answer the question on the basis of the following output data for a firm. Assume that
the amounts of all nonlabor resources are fixed.
Refer to the data. The marginal product of the sixth worker is:
A.180 units of output.
B.30 units of output.
C.15 units of output.
D.negative.
9) In a competitive resource market, a decrease in the demand for a productive
resource, ceterisparibus, will cause all of the following except a(n):
A.Decrease in the price of the resource
B.Increase in the price of the resource
C.Decrease in the total income earned by all units of the resource
D.Decrease in the number of units of the resource that are employed
10) The unemployment compensation social insurance program is a:
A.Purely Federal government program
B.Purely state-level government program
C.Federal-state program
D.Local government program
