1) Assume that a bank initially has no excess reserves. If it receives $5,000 in cash from
a depositor and the bank finds that it can safely lend out $4,500, the reserve requirement
must be:
A.zero.
B.10 percent.
C.20 percent.
D.25 percent.
2) the letters a, b, and c designate three successively larger plant sizes.
refer to the above data. at what level of output is minimum efficient scale realized?
a.30
b.40
c.50
d.60
3) if the equation y = 5 + 6x was graphed, the:
a.slope would be -5
b.slope would be +5
c.slope would be +.6
d.vertical intercept would be +.6
4) One of the implications of the supply-side anecdote is that:
A.tax cuts distributed equally across all workers would result in some people being paid
by the government to work.
B.it is unwise to dine with supply-side economists if you are the wealthiest person at
the table.
C.tax cuts are generally distributed unfairly.
D.the U.S. tax system is proportional.
5) The Alcoa case:
A.supported the structuralist approach to antitrust.
B.struck down the treble damages provision of the antitrust laws.
C.called for Federal regulation of any industry with a four-firm concentration ratio in
excess of 50 percent.
D.outlawed all conglomerate mergers.
6) Wage differentials may result from all the following except:
A.differences in the nonmonetary aspects of various occupations.
B.differences in the education and skills of workers.
C.geographic and sociological immobilities of workers.
D.the tendency of qualified workers to move from lower pay jobs to higher pay jobs.
7) The marginal revenue product schedule is:
A.the same whether the firm is selling in a purely competitive or imperfectly
competitive market.
B.the firm’s resource demand schedule.
C.the firm’s resource supply schedule.
D.upsloping.
8) Henry George’s single tax movement was based on the argument that:
A.the tax structure should consist solely of a highly progressive tax on nonwage
incomes.
B.interest is unearned income and should be taxed away by government.
C.in less developed countries the supply of and demand for land will be such that land
will be a free good and therefore capable of bearing sizable taxes.
D.a high tax on land rent is justified because land rent performs no incentive function.
9) countries that have experienced modern economic growth have also tended to:
a.adopt feudalistic institutions.
b.restrict women and minorities from holding certain economic and political positions.
c.move toward more democratic forms of government.
d.have less leisure time for sport and artistic activities.
10) Ward Planter exclusively grew soybeans in each of the past three years and
currently participates in the marketing loan program of the Food, Conservation, and
Energy Act of 2008. If the “crop price” of soybeans at harvest is less than the
pre-harvest “loan price,” Planter can:
A.sell his crop in the market and receive the difference between the crop price and loan
price as a direct payment from the Federal government.
B.take a “crop credit” based on the difference between the crop price and the loan price
and use the credit to reduce Federal income taxes owed.
C.receive an “emergency loan” that can be paid back over the following five years.
D.forfeit the harvest to the lender and be free of the loan, thus receiving a subsidy
because the proceeds from the loan exceed the revenues from the sale of the crop in the
market.
11) Which of the following represents a change in today’s banking policies that should
prevent a recurrence of the bank panics of 1930-1933?
A.banks are more cautious lenders
B.banks keep large amounts of excess reserves on hand
C.the FDIC insures bank deposits and therefore depositors do not panic and rush to
withdraw money when individual banks have financial problems
D.the President now has the authority to close banks whenever panics occur
12) a consumer’s demand curve for a product is downsloping because:
a.total utility falls below marginal utility as more of a product is consumed.
b.marginal utility diminishes as more of a product is consumed.
c.time becomes less valuable as more of a product is consumed.
13)
Refer to the above graph. An increase in the quantity of labor demanded is shown by
the:
A.shift from labor demand curve D1 to D2.
B.shift from labor demand curve D3 to D2.
C.move from a to b along labor demand curve D1.
D.move from b to a along labor demand curve D1.