1) The idea that a person’s productive efforts and his or her economic rewards are
unrelated:
A.is the neocolonialism view of economic development.
B.describes the vicious circle of poverty.
C.is the surplus labor theory of economic development.
D.is the capricious universe view.
2) Which of the following policies has succeeded in reducing fishery catch sizes?
A.Limiting the length of the catch season.
B.Limiting the number of boats allowed in a given area.
C.Limiting catch size (TAC).
D.All of these.
3) a pure monopolist:
a.will realize an economic profit if price exceeds atc at the
profit-maximizing/loss-minimizing level of output.
b.will realize an economic profit if atc exceeds mr at the
profit-maximizing/loss-minimizing level of output.
c.will realize an economic loss if mc intersects the downsloping portion of mr.
d.always realizes an economic profit.
4) the practice of price discrimination is associated with pure monopoly because:
a.it can be practiced whenever a firm’s demand curve is downsloping.
b.monopolists have considerable ability to control output and price.
c.monopolists usually realize economies of scale.
d.most monopolists sell differentiated products.
5) the total income earned in any year by u.s. resource suppliers, plus taxes on
production and imports, is measured by:
a.di.
b.ni.
c.pi.
d.gdp.
6) If unintended increases in business inventories occur, we can expect:
A.a decline in GDP and rising unemployment.
B.inflation.
C.an increase in consumption.
D.an offsetting increase in planned investment.
7)
the tax represented above is:
a.optimal.
b.proportional.
c.regressive.
d.progressive.
8) According to monetarists, a fiscal deficit will be associated with an increase in real
output:
A.regardless of the character of accompanying changes in M or V.
B.only if it is accompanied by an increase in the demand for money.
C.only if it is accompanied by an increase in the supply of money.
D.only if it is financed by selling government bonds to the public.
9) which of the following would not be expected to increase labor productivity?
a.technological advance
b.the acquisition of more education and training by the labor force
c.an increase in the size of the labor force
d.the realization of economies of scale
10)
the firm represented by the above diagram would maximize its profit where:
a.curves (2) and (1) intersect.
b.curve (1) touches the horizontal axis for the second time.
c.the vertical distance between curves (3) and (4) is the greatest.
d.curves (3) and (4) intersect.
11) Given a fixed upsloping AS curve, a rightward shift of the AD curve will:
A.cause cost push inflation.
B.increase real output but not the price level.
C.increase the price level but not real output.
D.increase both the price level and real output.
12) taxes on commodities or on purchases are known as:
a.corporate income taxes
b.sales and excise taxes
c.personal income taxes
d.payroll taxes
13)
the above diagram shows the short-run average total cost curves for five different plant
sizes of a firm. in the long run the firm should produce output 0x with a plant of size:
a.#4.
b.#3.
c.#2.
d.#1.
14) Monetarists say that the relationship between the amount of money which
households and businesses want to hold and the level of national output and income:
A.has decreased historically because of increased accessibility to credit.
B.rises during recession and falls during periods of full employment.
C.falls during recession and rises during periods of full employment.
D.is relatively stable.