1) (last word) over the past twenty-five years, china has averaged annual growth rates
of nearly:
a.5 percent.
b.9 percent.
c.12 percent.
d.15 percent.
2) Assume the current equilibrium level of income is $200 billion as compared to the
full-employment income level of $240 billion. If the MPC is 0.625, what change in
aggregate expenditures is needed to achieve full employment?
A.a decrease of $12 billion
B.an increase of $25 billion
C.an increase of $10 billion
D.an increase of $15 billion
3) A profit-maximizing company should not extract any of a particular non-renewable
resource in the present if:
A.the total cost exceeds the market price of the resource.
B.the extraction cost exceeds the market price of the resource.
C.the user cost exceeds the current market price of the resource.
D.any of these conditions occur.
4)
as the firm in the above diagram expands from plant size #1 to plant size #3, it
experiences:
a.diminishing returns.
b.economies of scale.
c.diseconomies of scale.
d.constant costs.
5) The following table in which columns (1) and (2) indicate the transactions demand
(Dt) for money and columns (1) and (3) show the asset demand (Da) for money:
The above data suggest that the amount of money demanded for transactions:
A.varies directly with the interest rate.
B.varies inversely with the interest rate.
C.varies inversely with nominal GDP.
D.is independent of the interest rate.
6) gdp can be calculated by summing:
a.consumption, investment, government purchases, exports, and imports.
b.investment, government purchases, consumption, and net exports.
c.consumption, investment, wages, and rents.
d.consumption, investment, government purchases, and imports.
7) Alex, Kara, and Susie are the only three people in a community and Alex is willing to
pay $20 for the 5th unit of a public good; Kara, $15, and Susie, $25. Government
should produce the 5th unit of the public good if the marginal cost is less than:
A.$25.
B.$15.
C.$60.
D.$300.
8) a competitive firm will maximize profits at that output at which:
a.total revenue exceeds total cost by the greatest amount.
b.total revenue and total cost are equal.
c.price exceeds average total cost by the largest amount.
d.the difference between marginal revenue and price is at a maximum.
9) Which of these sets of countries have the greatest degree of internal corruption,
according to Transparency International?
A.Somalia, Myanmar, and Russia
B.Finland, Denmark, and New Zealand
C.United States, Greece, and Italy
D.Mexico, China, and India
10)
refer to the above diagrams. diagram (b) represents:
a.the pure competition model.
b.an industry in which there is allocative efficiency but not productive efficiency.
c.the pure monopoly model.
d.a long-run constant-cost industry.
11)
the movement of the budget line from bb to bb in the above figure suggests that income
has:
a.increased and the price of x has decreased.
b.fallen and the price of y has increased.
c.fallen and the price of x has decreased.
d.decreased but there have been no price changes.
12) Statistical data for the 1970s and 1980s suggest that:
A.the Phillips Curve was stable.
B.the Phillips Curve was unstable.
C.low levels of unemployment were consistently associated with high rates of inflation.
D.the inflation rate was highly stable.
13) Approximately what percent of the world’s income is received by the poorest
one-fifth of the world’s population?
A.2
B.5
C.7
D.10
14)
Refer to the above diagrams, in which AD1 and AS1are the “before” curves and AD2
and AS2 are the “after” curves. Growth, full-employment and price stability is depicted
by:
A.panel (A) only.
B.panel (B) only.
C.panel (C) only.
D.panels (B) and (C).
15) which of the following best defines disposable income?
a.income received by households less personal taxes
b.the before-tax income received by households
c.all income earned by resource suppliers for their current contributions to production
d.the market value of the annual output net of consumption of fixed capital