1) Which of the following would not shift the demand curve for beef?
A.A widely publicized study that indicates beef consumption increases one’s
cholesterol.
B.A reduction in the price of cattle feed.
C.An effective advertising campaign by pork producers.
D.A change in the incomes of beef consumers.
2)
Refer to the diagram, which shows demand and supply conditions in the competitive
market for product X. If the initial demand and supply curves are D0 and S0,
equilibrium price and quantity will be:
A.0F and 0C, respectively.
B.0G and 0B, respectively.
C.0F and 0A, respectively.
D.0E and 0B, respectively.
3) The following is cost information for the Creamy Crisp Donut Company:
Entrepreneur’s potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur’s talent in the next best entrepreneurial activity = $80,000
Entrepreneur’s forgone interest on personal funds used to finance the business = $6,000
Refer to the data. Creamy Crisp’s accounting profit is:
A.$150,000.
B.$380,000.
C.$230,000.
D.$294,000.
4) Economists argue that in treating patients:
A.physicians should use any test or procedures that might help the patient.
B.health care should not be rationed by physicians because it is an entitlement or right.
C.both benefits and costs should be taken into account by physicians.
D.physicians should use any test or procedure whose marginal benefit is positive.
5) Which statement best illustrates the concept of diminishing marginal utility?
A.As one consumes more hamburgers per week, one would be willing to pay a higher
price for additional hamburgers
B.Some consumers will receive less satisfaction from consuming hamburgers than from
consuming fried chicken
C.A typical consumer will receive less satisfaction from consuming the fourth
hamburger than from the third hamburger in a week
D.A decrease in the price of hamburgers will cause consumers to buy more hamburgers
because they can afford to buy more
6)
Refer to the above table. If the equilibrium price increases, then the:
A.Producer surplus will decrease
B.Consumer surplus will increase
C.Producer surplus will increase
D.Allocative efficiency will increase
7) Answer the question on the basis of the following table showing the demand
schedule facing a nondiscriminating monopolist:
Refer to the table. Assume that this monopolist faces zero production costs. The
profit-maximizing monopolist will set a price of:
A.$10.
B.$7.
C.$5.
D.$3.
8) The demand for a productive resource is said to be “derived” because the demand for
the factor:
A.Depends on the demand for the product it helps to produce
B.Depends on the demand for a complementary factor
C.Is derived from the state of the economy
D.Is derived from government policy
9) The invisible hand refers to the:
A.fact that the U.S. tax system redistributes income from rich to poor.
B.notion that, under competition, decisions motivated by self-interest promote the
social interest.
C.tendency of monopolistic sellers to raise prices above competitive levels.
D.fact that government controls the functioning of the market system.
10)
Legal immigration into the U.S. can be done through the following ways, except:
A.Annual immigration quotas
B.Refugee program
C.H1-B provision
D.Tourism visas