1)
In the above diagram, (1) is the:
A.expected-rate-of-return curve and (2) is the average total cost curve.
B.total revenue curve and (2) is the interest-rate-cost-of funds-curve.
C.expected-rate-of-return curve and (2) is the interest-rate-cost-funds curve.
D.marginal cost curve and (2) is the marginal benefit curve.
2) Construction workers frequently sponsor political lobbying in support of greater
public spending on highways and public buildings. One reason they do this is to:
A.restrict the supply of construction workers.
B.increase the elasticity of demand for construction workers.
C.increase the demand for construction workers.
D.increase the price of substitute inputs.
3) listed in descending order of relative size, total consumption spending is comprised
of:
a.nondurable goods, durable goods, and services.
b.services, nondurable goods, and durable goods.
c.services, durable goods, and nondurable goods.
d.durable goods, nondurable goods, and services.
4) prashanth decides to buy a $75 ticket to a particular new york professional hockey
game rather than a $50 ticket for a particular broadway play. we can conclude that
prashanth:
a.is relatively unappreciative of the arts.
b.obtains more marginal utility from the play than from the hockey game.
c.has a higher “marginal utility to price ratio” for the hockey game than for the play.
d.has recently attended several other broadway plays.
5) the demand for commodity x is represented by the equation p = 100 – 2q and supply
by the equation p = 10 + 4q.
refer to the above information. if demand changed from p = 100 – 2q to p = 130 – q, we
can conclude that:
a.demand has increased.
b.demand has decreased.
c.supply has increased.
d.supply has decreased.
6) Acreage allotment programs were designed to:
A.reduce the supply of agricultural products.
B.make the demand for farm products more price elastic.
C.bolster the demand for agricultural commodities.
D.accelerate the movement of human resources out of farming.
7) brinley says that “gas prices are rising because there aren’t enough oil refineries.”
katie argues that “gas prices are rising because of the growing demand for gasoline
from china and india.” we can conclude that:
a.brinley’s statement is positive; katie’s statement is normative.
b.brinley’s statement is normative; katie’s statement is positive.
c.both statements are positive.
d.both statements are normative.
8) an outward shift of a nation’s production possibilities curve:
a.ensures the nation of an increase in real gdp per capita.
b.ensures the nation of an increase in real gdp, but not of real gdp per capita.
c.neither ensures a nation of an increase in real gdp nor of an increase in real gdp per
capita.
d.ensures a nation of an increase in both real gdp and real gdp per capita.
9) The real-balances, interest-rate, and foreign purchases effects all help explain:
A.why the aggregate demand curve is downsloping.
B.why the aggregate supply curve is upsloping.
C.shifts in the aggregate demand curve.
D.shifts in the aggregate supply curve.
10)
Refer to the above diagram for a private closed economy. At the $300 level of GDP:
A.aggregate expenditures and GDP are equal.
B.consumption is $200 and planned investment is $50.
C.saving exceeds planned investment.
D.consumption plus saving is $400.
11) the point on the production possibilities curve that is most desirable can be found
by:
a.estimating the marginal costs of both products in real or physical terms.
b.comparing marginal benefits and marginal costs.
c.determining where least-cost production occurs.
d.calculating where economic growth will be greatest.
12) the following cost data for a firm that is selling in a purely competitive market:
refer to the above data. if there were 1,000 identical firms in this industry and total or
market demand is as shown below, equilibrium price will be:
a.$32.
b.$42.
c.$36.
d.$13.
13) suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result,
the total revenue received by peanut farmers changes from $16 to $14 billion. thus:
a.the demand for peanuts is elastic.
b.the demand for peanuts is inelastic.
c.the demand curve for peanuts has shifted to the right.
d.no inference can be made as to the elasticity of demand for peanuts.
14) the organization created to oversee the provisions of multilateral trade agreements,
resolve disputes under the international trade rules, and meet periodically to consider
further trade liberalization is called the:
a.international monetary fund (imf).
b.world trade organization (wto).
c.common market organization (cmo).
d.international trade commission (itc).
15) Which of the following is the best example of public investment?
A.salaries of Senators and Representatives
B.government expenditures on food stamps
C.construction of highways
D.funding of regulatory agencies
16) according to estimates, what percentage of agricultural workers in the united states
are illegal immigrants?
a.12
b.17
c.24
d.43