1) The ability of the DVCs to use the technologies of the IACs is somewhat limited
because:
A.the IACs have patents on most of their technologies.
B.the IACs and the DVCs have much different resource endowments.
C.the technologies of the IACs rely heavily on unskilled labor.
D.IAC technologies are labor-intensive, while DVC technologies are capital-intensive.
2) One of the peculiarities of the U.S. market for health care is:
A.Third-party payments by insurance companies
B.Government-provided health insurance
C.Government tax credits and vouchers for consumers to pay for health care
D.Fee-for-service payments for all physician visits
3) Risk is a problem faced:
A.only in market systems.
B.only in command systems.
C.in both market systems and command systems.
D.in neither market systems nor command systems, only in laissez-faire capitalism.
4) The U.S. poverty rate for:
A.Hispanics is higher than that for African Americans.
B.children under 18 years of age is higher than for the overall population.
C.African Americans has increased since 1993.
D.foreign-born individuals who are not citizens is below the poverty rate for the general
population.
5)
Refer to the diagram. This production possibilities curve is constructed so that:
A.resources are presumed to be perfectly shiftable between bread and tractors.
B.the opportunity cost of bread diminishes as more bread is produced.
C.the opportunity cost of tractors increases as more bread is produced.
D.the opportunity costs of both bread and tractors increase as more of each is produced.
6) Marginal revenue product (MRP) of labor refers to the:
A.increase in total revenue resulting from the sale of an additional unit of output.
B.amount by which a firm’s total resource cost increases when it employs one more unit
of labor.
C.increase in total revenue resulting from the hire of one more unit of labor.
D.price at which additional units of labor can be employed in a monopsonized labor
market.
7) An economic model is a purposeful simplification of reality, whose function
includes:
A.Understanding the full complexity of the real world
B.Predicting the behavior of each and every individual or organization
C.Analyzing the behavior of a typical or average consumer or firm
D.Forecasting economic random events with a high level of accuracy
8) Which cannot be a characteristic of an oligopolistic industry?
A.Differentiated products
B.A large number of consumers
C.Significant barriers to entry
D.A perfectly elastic firm demand curve
9)
Refer to the above table for a profit-maximizing firm. The price of the firm’s product is
$10 per unit and the wage rate is a constant $110 a day. How many workers will the
firm hire, assuming purely competitive product and resource markets?
A.4
B.5
C.6
D.7
10) A consumer has an income of $24 to spend each day. The only two goods the
consumer is interested in purchasing are goods A and B. The marginal-utility schedules
for these two goods are shown in the table below. The price of B does not change and is
$2. The marginal utility per dollar from B is also shown in the table. But the price of A
varies as shown in the table. The marginal utility per dollar from A when the price of A
is $8 and $4 is shown in the following table.
Complete the table below to show how much of A the consumer will buy each week at
each of the two possible prices of A. Also, show how much B will be demanded when
the price of A changes.
11) Which of the following bargaining tactics is illegal?
A.A lockout.
B.A strike.
C.Refusal to meet with union representatives.
D.Hiring strikebreakers.
12) Increasing marginal cost of production explains:
A.the law of demand.
B.the income effect.
C.why the supply curve is upsloping.
D.why the demand curve is downsloping.
13)
Refer to the diagram. The firm’s supply curve is the segment of the:
A.MC curve above its intersection with the AVC curve.
B.MC curve above its intersection with the ATC curve.
C.AVC curve above its intersection with the MC curve.
D.ATC curve above its intersection with the MC curve.
14)
Refer to the diagram where the numerical data show profits in millions of dollars. Beta’s
profits are shown in the northeast corner and Alpha’s profits in the southwest corner of
each cell. If Alpha and Beta engage in collusion, the outcome of the game will be at
cell:
A.A
B.B
C.C
D.D