1)
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a
product and Pc is the world price of that product. With a per-unit tariff of PcPt, the total
amount of tariff revenue collected on this product will be:
A.PaPt times wy.
B.PcPa times x.
C.PcPt times wy.
D.PcPt times z.
2)
Refer to the table representing Kara’s bank account. Assuming that $2,000 was
deposited into her account at the beginning of year 1, and no further deposits or
withdrawals were made, the value for cell B:
A.cannot be determined.
B.is $2,220.
C.is $2,420.
D.is $2,620.
3) The central idea illustrated by the vignette on “catgut” used as violin strings is:
A.patent rights.
B.research and development activity.
C.derived demand.
D.trade secrets.
4) Which of the following factors tends to foster the development of an oligopoly?
A.Economies of scale
B.Foreign competition
C.Antitrust legislation
D.Low barriers to entry
5) Answer the question on the basis of the following production possibilities data for
Gamma and Sigma. All data are in tons.
Gamma’s production possibilities:
Sigma’s production possibilities:
On the basis of the given information:
A.Gamma should export both tea and pots to Sigma.
B.Sigma should export tea to Gamma and Gamma should export pots to Sigma.
C.Gamma should export tea to Sigma and Sigma should export pots to Gamma.
D.Gamma should export tea to Sigma, but it will not be profitable for the two nations to
exchange pots.
6) Which transaction represents a debit in the current account section of the U.S.
balance of payments?
A.The Arab Capital Investment Corporation makes a loan to a U.S. firm
B.A U.S. subsidiary exports raw materials to the Canadian parent company
C.U.S. tourists in Great Britain purchase pounds with dollars in order to buy souvenirs
D.U.S. firms and individuals receive dividends from their investments in Latin America
7) Which of the following was a major objective of the Health Information Technology
for Economic and Clinical Health Act?
A.More accurate records so health care providers could increase billings.
B.Equip all households with personal medical devices to send real-time health
symptoms to health care providers.
C.Identify potential cost savings by detecting excessive procedures and medications.
D.All of these.
8) Marginal revenue product describes the:
A.Output produced by the last unit of labor employed
B.Revenue received for the last unit of output produced
C.Price a consumer paid for the last unit of output produced
D.Revenue received for the additional output produced by the last unit of labor
employed
9) The circular flow model illustrates:
A.The importance of having a central plan for the economy
B.How natural and other resources are created
C.How money is created by the banking system
D.The interdependence of businesses and consumers
10) Which statement is correct?
A.Marginal cost is the change in average cost when there is a change in output of 1 unit
B.The marginal cost curve cuts the average variable cost curve at its lowest point
C.The marginal cost curve cuts the average variable cost curve at an output greater than
where the marginal cost curve cuts the average cost curve
D.If average variable cost is increasing, then average total cost must be increasing too
11) In the United States, professional football players earn much higher incomes than
professional soccer players. This occurs because:
A.most football players are good soccer players while the reverse is not true.
B.consumers have a greater demand for football games than for soccer games.
C.football and soccer games are highly substitutable products for most consumers.
D.the marginal productivity of soccer players exceeds that of football players.
12) The non-discriminating pure monopolist must decrease price on all units of a
product sold in order to sell more units. This explains why:
A.There are barriers to entry in pure monopoly
B.A monopoly has a perfectly elastic demand curve
C.Marginal revenue is less than average revenue
D.Total revenues are greater than total costs at the profit maximizing level of output
13) If a firm decides to produce no output in the short run, its costs will be:
A.its marginal costs.
B.its variable costs.
C.its fixed costs.
D.zero.
14) “Offshoring” refers to:
A.importing goods, services, and resources.
B.stashing money in offshore accounts for the purpose of avoiding taxes.
C.shifting work overseas that was previously done domestically.
D.exporting key resources.
15) Productive efficiency refers to:
A.the use of the least-cost method of production.
B.the production of the product mix most wanted by society.
C.the full employment of all available resources.
D.production at some point inside of the production possibilities curve.