1) The plus items below are “export-type” entries and the minus items are “import-type”
entries in the balance of payments for the hypothetical country of Zippo.
Refer to the above information. The current account items for Zippo are:
A.1, 2, 3, and 4
B.1, 3, 4, 5, 7, and 9
C.6 and 8
D.1, 2, 4, 7, and 9
2) suppose a purely competitive, increasing-cost industry is in long-run equilibrium.
now assume that a decrease in consumer demand occurs. after all resulting adjustments
have been completed, the new equilibrium price:
a.and industry output will be less than the initial price and output.
b.will be greater than the initial price, but the new industry output will be less than the
original output.
c.will be less than the initial price, but the new industry output will be greater than the
original output.
d.and industry output will be greater than the initial price and output.
3)
refer to the above diagram. this production possibilities curve is:
a.convex to the origin because opportunity costs are constant.
b.linear because opportunity costs are constant.
c.concave to the origin because of increasing opportunity costs.
d.convex to the origin because of increasing opportunity costs.
4)
refer to the above diagrams. the case of substitute goods is represented by figure:
a.a.
b.b.
c.c.
d.d.
5) Assume that all workers are equally productive but the wage rate for men is $12
compared to $9 for women. An employer who employs only male workers must have a
discrimination coefficient of:
A.more than $3.
B.at most .3.
C.less than $3.
D.1.33 or less.
6)
Refer to the above diagram. If the aggregate supply curve shifted from AS0 to AS1, we
could say that:
A.aggregate supply has increased, equilibrium output has decreased, and the price level
has increased.
B.aggregate supply has decreased, equilibrium output has decreased, and the price level
has increased.
C.an increase in the amount of output supplied has occurred.
D. aggregate supply has increased and the price level has risen to G.
7) if a positive relationship exists between x and y:
a.an increase in x will cause y to decrease.
b.a decrease in x will cause y to increase.
c.the relationship will graph as an upsloping line.
d.the vertical intercept must be positive.
8) if depreciation exceeds gross investment:
a.the economy’s stock of capital may be either growing or shrinking.
b.the economy’s stock of capital is shrinking.
c.the economy’s stock of capital is growing.
d.net investment is zero.
9)
Refer to the above diagram. If the full-employment level of GDP is B and aggregate
expenditures are at AE3, the:
A.inflationary expenditure gap is BC.
B.recessionary expenditure gap is BC.
C.recessionary expenditure gap is ed.
D. inflationary expenditure gap is ed.
10) The Coase theorem states that:
A.government should levy excise taxes on firms that generate spillover or external
costs.
B.taxes should be levied such that they change private behavior as little as possible.
C.bargaining between private parties will remedy externality problems where property
rights are clearly defined, the number of people involved are few, and bargaining costs
are small.
D.trading of votes to secure favorable voting outcomes may increase efficiency.
11)
in the above diagram the vertical intercept and slope are:
a.4 and -11/3 respectively.
b.3 and -11/3 respectively.
c.3 and + 3/4 respectively.
d.4 and + 3/4 respectively.
12)
Refer to the above diagram and assume the economy is operating at equilibrium point
w. In the short run, a decrease in the price level from P2 to P1 would move the economy
from point w to point:
A.v
B.x
C.t
D.y
13)
Refer to the above diagram. If (C + Ig) are the private expenditures in the closed
economy and Xn2 are the net exports in the open economy:
A.exports are negative.
B.net exports are positive.
C.net exports are negative.
D.exports are positive.
14) In the United States professional football players earn much higher incomes than
professional soccer players. This occurs because:
A.most football players are good soccer players while the reverse is not true.
B.consumers have a greater demand for football games than for soccer games.
C.football and soccer games are highly substitutable products for most consumers.
D.the marginal productivity of soccer players exceeds that of football players.
15) the larger the coefficient of price elasticity of demand for a product, the:
a.larger the resulting price change for an increase in supply.
b.more rapid the rate at which the marginal utility of that product diminishes.
c.less competitive will be the industry supplying that product.
d.smaller the resulting price change for an increase in supply.
16) Resource consumption per person in the past decade has:
A.leveled off or fallen in the richest countries.
B.leveled off or fallen for the world as a whole.
C.grown in the richest countries as good and service consumption per person has risen.
D.decreased significantly as commodity prices have risen.
17) A monopsonistic employer:
A.has a perfectly elastic labor supply curve.
B.is necessarily a monopolist in the product market.
C.confronts a marginal resource (labor) cost that is greater than the wage rate.
D.confronts a marginal resource (labor) cost that is less than the wage rate.