1) The following data for the hypothetical nations of Alpha and Beta. Qs is domestic
quantity supplied and Qd is domestic quantity demanded.
Refer to the above data. The equilibrium world price of steel must be between:
A.$5 and $4.
B.$4 and $3.
C.$3 and $2.
D.$2 and $1.
2) if a regulatory commission forces a natural monopoly to charge a price equal to its
average total cost:
a.output will decrease.
b.the monopolist will realize a normal profit.
c.resource allocation will worsen.
d.the firm will earn an economic profit.
3)
Refer to the above data. The firm’s optimal amount of R&D spending is:
A.$20 million.
B.$40 million.
C.$60 million.
D.$80 million.
4) Suppose that under its collective bargaining agreement the ABC Corporation can hire
nonunion workers, but such workers must join the union within 30 days. This
agreement embodies:
A.an open shop.
B.a closed shop.
C.a union shop.
D.an agency shop.
5)
as the firm in the above diagram expands from plant size #1 to plant size #3, it
experiences:
a.diminishing returns.
b.economies of scale.
c.diseconomies of scale.
d.constant costs.
6) Under a system of freely floating exchange rates, an increase in the international
value of a nation’s currency will:
A.cause an international surplus of its currency.
B.contribute to disequilibrium in its balance of payments.
C.cause gold to flow into that country.
D.cause its imports to rise.
7) Research for industrially advanced countries indicates that:
A.the more independent the central bank, the lower the average annual rate of inflation.
B.the more independent the central bank, the higher the average annual rate of inflation.
C.there is no relationship between the degree of independence of a country’s central
bank and its inflation rate.
D.the more independent the central bank, the higher the average annual rate of
unemployment.
8) The United Mine Workers is a good illustration of:
A.how unions have increased wages but reduced job opportunities by shifting the
supply-of-labor curve to the left.
B.how unions have raised wages and increased job opportunities by increasing the
demand for labor.
C.inclusive unionism.
D.exclusive unionism.
9) If you write a check on a bank to purchase a used Honda Civic, you are using money
primarily as:
A.a medium of exchange.
B.a store of value.
C.a unit of account.
D.an economic investment.
10) The following information for a hypothetical economy. All values are in nominal
terms.
M = $100
V = 2
Ca = $160
Xn = $10
G = $10
Refer to the above information. If the price level P is 4, Q is:
A.50.
B.100.
C.200.
D.500.
11) If a nation has a current account deficit and it does not have to make any
inpayments or outpayments of official reserves, it must have a:
A.surplus in its capital and financial account.
B.balance of payments deficit.
C.balance of payments surplus.
D.deficit in its capital and financial account.
12) If the reserve ratio is 100 percent, the value of the monetary multiplier is:
A.0.
B.1.
C.10.
D.100.