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1)
Refer to the graph above. If the industry were purely competitive, then the market price
would be:
A.$25, which is higher than what the price would have been if the industry were a
monopoly
B.$25, which is lower than what the price would have been if the industry were a
monopoly
C.$20, which is higher than what the price would have been if the industry were a
monopoly
D.$20, which is lower than what the price would have been if the industry were a
monopoly
2)
Refer to the above graph with three demand curves. An increase in price, other factors
constant, would cause a change from:
A.Point 4 to point 5
B.Point 3 to point 6
C.Point 1 to point 5
D.Point 2 to point 4
3) Between 2002 and 2011, U.S. farmers received yearly direct subsidies from the
Federal government averaging at about:
A.$2 billion
B.$10 billion
C.$22 billion
D.$40 billion
4) The current system of exchange rates can best be described as:
A.freely fluctuating exchange rates.
B.managed floating exchange rates.
C.rigidly fixed exchange rates.
D.an adjustable peg system.
5) The first discovery of the water-soluble material used in contact lenses is an example
of:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
6) A developing nation may not experience an increase in the average standard of living
even if it increases its output of goods and services because of:
A.Land reform
B.Population growth
C.Underemployment and disguised unemployment
D.Capital-saving technology
7) If the government imposes an excise tax on a good, it will collect the most tax
revenues from it if the demand for the good is:
A.Elastic
B.Inelastic
C.Unit elastic
D.Perfectly elastic
8) In 2012, the United States:
A.imported more services than it exported.
B.imported more goods than it exported.
C.traded mainly with developing nations such as Mexico and India.
D.had a small trade surplus in goods and services.
9)
Refer to the above graph. There are economies of scale:
A.From Q1 to Q2
B.From Q2 to Q3
C.From Q3 to Q4
D.After Q4
10) If energy use per capita in developed countries had leveled off while GDP per
capita had risen, then it must mean that:
A.Energy efficiency had risen
B.Energy efficiency had fallen
C.The energy-use-to-GDP ratio had risen
D.The GDP-to-energy-use ratio had fallen
11) When a firm doubles its inputs and finds that its output has more than doubled, this
is known as:
A.Economies of scale
B.Constant returns to scale
C.Diseconomies of scale
D.A violation of the law of diminishing returns
12) The marginal revenue curve for a monopolist:
A.is a straight, upsloping curve.
B.rises at first, reaches a maximum, and then declines.
C.becomes negative when output increases beyond some particular level.
D.is a straight line, parallel to the horizontal axis.
13) Government can raise economic efficiency through all of the following policies,
except:
A.Outlawing various forms of commercial deception
B.Imposing pollution taxes on polluting firms
C.Using tax money to subsidize goods with external benefits
D.Fixing the prices of various resources and products
14) The economizing problem for individuals is a consequence of the fact that:
A.Economic means or incomes are greater than economic wants
B.Economic wants are greater than economic means or incomes
C.Positive economics is more important than normative economics
D.Normative economics is more important than positive economics
15)
Refer to the information and assume the stadium capacity is 5,000. The supply of seats
for the game:
A.varies inversely with ticket prices.
B.varies directly with ticket prices.
C.is perfectly inelastic.
D.is perfectly elastic.
16) Currently (2013) the marginal tax rates of the federal personal income tax:
A.are less than corresponding average tax rates.
B.rise from 5 to 35 percent.
C.fall from 20 to 10 percent.
D.rise from 10 to 39.6 percent.
17) Answer the question on the basis of the following two schedules, which show the
amounts of additional satisfaction (marginal utility) that a consumer would get from
successive quantities of products J and K.
Refer to the data. If the consumer's money income were cut from $52 to $28, and the
prices of J and K remain at $8 and $4 respectively, she would maximize her satisfaction
by purchasing:
A.3 units of J and 3 units of K
B.1 unit of J and 3 units of K
C.4 units of J and 1 unit of K
D.2 units of J and 3 units of K
18) Alternative fuels become more economically viable as:
A.the demand for oil decreases.
B.subsidies for alternative fuels are removed.
C.oil exploration and drilling technology improve.
D.the price of oil rises.
