1) Farm outputs’ share of U.S. GDP from 1950 to the present:
A.Has stayed roughly constant at about 10%
B.Has dropped from about 30% to 10%
C.Has stayed roughly constant at about 30%
D.Has dropped from about 7% to 1%
2) A result of a fall in the price of gasoline, consumers can afford to buy more gasoline
for more driving trips. This is an illustration of:
A.The income effect
B.The substitution effect
C.Diminishing marginal utility
D.Consumer sovereignty
3) Specialty shops can charge and get customers to pay higher prices for identical goods
than they would pay in “big box” stores. Assuming that these differences are driven by
store appearance rather than differences in services provided, which of the following
best explains this phenomenon?
A.Availability heuristics.
B.Framing effects.
C.Confirmation biases.
D.Self-serving biases.
4) Since World War II:
A.North Korea’s command economy has significantly outperformed South Korea’s
market economy.
B.South Korea’s command economy has significantly outperformed North Korea’s
market economy.
C.North Korea’s market economy has significantly outperformed South Korea’s
command economy.
D.South Korea’s market economy has significantly outperformed North Korea’s
command economy.
5) Suppose Gigantic Health Cooperative doesn’t hire Mandy Morrison solely because
she is a graduate of a particular foreign medical school, which is not known for the high
quality of its graduates. Yet, Mandy is actually more qualified than the average graduate
of American medical schools. This is an example of:
A.monopsony exploitation.
B.human-capital discrimination.
C.statistical discrimination.
D.irrational behavior.
6) Most developing countries (DVCs) exhibit a low level of:
A.Illiteracy
B.Population growth
C.Life expectancy
D.Infant mortality
7)
Refer to the above graph for a pure monopoly. If the government regulated the
monopoly and made it produce the level of output that would achieve allocative
efficiency, what price and quantity levels would we observe in the short run?
A.P1 and Q1
B.P2 and Q3
C.P3 and Q2
D.P4 and Q1
8) Some people’s tendency to believe that they are better than average at making
judgments or opinions is called the:
A.Confirmation bias
B.Framing effect
C.Overconfidence effect
D.Self-serving bias
9) One major difference between PPOs (preferred providers organizations) and HMOs
(health maintenance organizations) is that:
A.PPOs set rates for various medical services or procedures, while HMOs allow their
doctors and clinics to set their own rates
B.PPOs seek to reduce health care costs by controlling prices, while HMOs seek to
reduce costs by restricting quantity consumed
C.HMOs employ their own physicians or contract for specialized services with outside
providers, while PPOs have arrangements with a network of providers
D.HMOs seek to reduce costs by capping the rates for various services, while PPOs
seek to ration health care by having waiting periods
10) The major sources of funds for the U.S. Federal government include the following,
except:
A.Payroll taxes
B.Proprietary income
C.Borrowing
D.General sales taxes
11) According to the Organization for Economic Cooperation and Development
(OECD):
A.the United States has the most progressive tax system among OECD nations.
B.the United States has the least progressive tax system among OECD nations.
C.the U.S. tax system has the same degree of progressivity as those of nations such as
Canada, Japan, and France.
D.the U.S. tax system has the same degree of progressivity as those of many developing
nations.
12) Plastics manufacturers can make either toys or plastic containers. If the prices and
profitability of plastic toys increase, then the:
A.Demand for plastic containers will decrease
B.Supply of plastic containers will increase
C.Demand for plastic containers will increase
D.Supply of plastic containers will decrease
13) Scholarly estimates of the effects of immigration on the average American wage
range from:
A.-5 to -2 percent.
B.+2 to +3 percent.
C.-5 to +3 percent.
D.-3 to +2 percent.
14) Other things equal, ethanol made from corn becomes economically viable (as or
less costly than using oil) when oil prices reach _____ or more per barrel.
A.$60
B.$80
C.$100
D.$120