1)
Refer to the above graph. Which of the following movements would indicate a
reduction in unemployment?
A.From point C to point D
B.From point F to point H
C.From point E to point D
D.From point D to point G
2) For which of the following income-maintenance programs is aggregate spending the
greatest?
A.Medicare.
B.Social Security.
C.Unemployment compensation.
D.TANF.
3) In the U.S., government subsidies for “alternative” energy sources have been have
been:
A.Hugely successful with minimal failures
B.The major reason for the nation’s reduced dependence on imported sources of energy
C.Receiving universal political support
D.Marred by costly failures and rendered moot by a sharp increase in conventional
energy supply
4) Henry George advocated a single tax on:
A.real capital.
B.entrepreneurial profits.
C.land.
D.labor income.
5) All of the following would add to the demand for U.S. dollars except:
A.Long-term capital inflows
B.Foreign travel by United States citizens
C.Exports of commodities from the United States
D.Travel by foreigners on United States airlines
6)
Given the above graph, the competitive firm’s supply curve is the:
A.MC curve above F
B.MC curve above G
C.MC curve above H
D.MC curve above J
7) The fact that specific areas of the human brain deal with specific sensations and
activities like hearing, speech, and breathing is referred to as brain:
A.Heuristics
B.Specificity
C.Modularity
D.Myopia
8) The reason that unskilled construction workers typically receive higher wages than
retail sales clerks is best explained by:
A.Discrimination
B.Geographic immobilities
C.Compensating differences
D.Noncompeting labor groups
9)
Refer to the above table. The marginal revenue product of the third unit of the resource
is:
A.$3
B.$5
C.$19
D.$36
10) If labor productivity in the health care industry rises very slowly relative to wages
and salaries in the industry, this would tend to:
A.increase the demand for health care.
B.decrease the demand for health care.
C.increase the supply of health care.
D.increase the cost of health care.
11)
Refer to the diagrams. The solid lines are production possibilities curves; the dashed
lines are trading possibilities curves. The trading possibilities curves imply that:
A.both countries have a trade surplus that will result in economic growth.
B.the domestic production possibilities curves entail unemployment and/or the
domestic misallocation of resources.
C.world resources will be allocated more efficiently if the two nations specialize and
trade based on comparative advantage.
D.both nations will be worse off as a result of international specialization and trade.
12) The demand for agricultural products is quite inelastic and this can be explained by:
A.Economies of scale and substitution effect
B.Diminishing marginal returns and income effect
C.Increasing marginal cost and income effect
D.Substitution effect and diminishing marginal utility
13)
Refer to the above graph. At what level of output will the firm earn a maximum
unit-profit margin (or profit per unit)?
A.0A
B.0B
C.0C
D.0K
14) Why do economists use percentages rather than absolute amounts in measuring the
responsiveness of consumers to changes in price?
15) What are two criticisms of the marginal productivity theory of income distribution?
16) What is meant by the guiding function of prices?
17) What explains wage differentials in labor markets? Evaluate from a demand and
supply perspective.
18) What will happen to the U.S. dollar price of a euro and the quantity of euros
exchanged when the demand for the euro increases, but the supply does not change?
Has the U.S. dollar appreciated or depreciated?