1) Under which of the following conditions would a profit-maximizing monopolist
necessarily raise price?
A.If product demand was price-elastic
B.If marginal revenue is positive
C.If marginal revenue was greater than marginal cost
D.If marginal cost was greater than marginal revenue
2) The labor demand curve of a purely competitive seller:
A.slopes downward because the firm must lower price to sell more output.
B.slopes downward because labor productivity increases as successive workers are
hired.
C.is perfectly elastic because the firm is hiring an insignificant portion of the total labor
supply.
D.slopes downward because the marginal product of successive workers declines.
3)
Refer to the diagram. A decrease in quantity demanded is depicted by a:
A.move from point x to point y.
B.shift from D1 to D2.
C.shift from D2 to D1.
D.move from point y to point x.
4) Which is true of an economy which operates entirely through central planning?
A.Individual economic incentive is reduced by the absence of the profit motive
B.There is relative ease in matching resource allocation to consumer demand
C.Central planners receive market information through the price mechanism
D.The system adapts easily to technological change
5) The medically uninsured may wait until their illness reaches a critical stage before
going to the hospital for admittance or emergency care. Hospitals in the U.S. provide
how much of this uncompensated or “free” health care services per year?
A.About $6 billion
B.About $12 billion
C.About $36 billion
D.About $58 billion
6) The short-run supply curve of a purely competitive producer is based primarily on
its:
A.AVC curve.
B.ATC curve.
C.AFC curve.
D.MC curve.
7)
Refer to the diagram. If line (c) represents the distribution of income in 1975 in the
United States, we would expect the distribution of income for 2011 to be more like:
A.line (a).
B.line (b).
C.line (c).
D.line (d).
8)
Refer to the diagram, where variable inputs of labor are being added to a constant
amount of property resources. Average variable cost will be at a minimum when the
firm is hiring:
A.Q3 workers.
B.Q2 workers.
C.Q1 workers.
D.more than Q3 workers.
9)
Refer to the diagram. At output level Q1:
A.neither productive nor allocative efficiency is achieved.
B.both productive and allocative efficiency are achieved.
C.allocative efficiency is achieved, but productive efficiency is not.
D.productive efficiency is achieved, but allocative efficiency is not.
10)
The U.S. Census Bureau estimates the number of illegal immigrants by subtracting the:
A.Sum of the past annual flows of legal immigrants from the past annual inflows of all
immigrants
B.Current number of legal immigrants from the current total number of all immigrants
C.Current of legal immigrants from the past annual inflows of all immigrants
D.Sum of the past annual flows of legal immigrants from the current total number of all
immigrants
11) Which of the following is directly illegal under the Sherman Act?
A.Price discrimination.
B.Tying contracts.
C.Price-fixing.
D.Interlocking directorates.
12) If a competitive industry is neither expanding nor contracting, we would expect:
A.total revenue to be zero.
B.economic profits to be zero.
C.total opportunity cost to be zero.
D.more resources to flow to that industry.
13) Income:
A.is a stock concept.
B.consists of accumulated assets.
C.is a flow concept.
D.consists of wages only.
14)
Immigrants made up approximately what percent of the labor force in the U.S. in 2007?
A.5%
B.25%
C.16%
D.33%
15) The traditional view of technological advance was that it:
A.Was a random external force to which the economy adjusts
B.Arose largely from advances in military-related research
C.Was the result of capitalism and the rivalry among firms
D.Arose from international trade and the sharing of ideas among nations