1) If unemployed workers leave a nation, the standard of living (national income per
capita) will rise in that nation.
2)
Which of the following groups has the highest proportion of unskilled illegal immigrants
in the U.S.?
A.Agricultural workers
B.Construction workers
C.Cleaning workers
D.Food preparers
3)
Suppose you have a money income of $10, all of which you spend on Coke and
popcorn. In the diagram, the prices of Coke and popcorn respectively are:
A.$.50 and $1.00.
B.$1.00 and $.50.
C.$1.00 and $2.00.
D.$.40 and $.50.
4) “Regulatory capture” refers to the situation where a government agency charged with
supervising and regulating a particular industry is:
A.Strongly influenced by the firms in that industry
B.Headed by bureaucrats who have a “lock” on their positions, without any rivals
C.Completely dominating the actions of firms in the industry
D.Headed by unelected government officials
5) The MRP curve for labor:
A.is downsloping and shows the relationship between wage rates and the quantity of
labor demanded.
B.is perfectly elastic if the firm is selling its output competitively.
C.is upsloping and lies above the labor supply curve.
D.will shift location when the wage rate changes.
6) The table below shows labor-productivity figures in two countries facing constant
costs:
Refer to the table above. Based on the data provided, it can be deduced that:
A.Country A has the absolute advantage in producing both meat and houses
B.Country B has the absolute advantage in producing both meat and houses
C.Country A has a comparative advantage in producing both meat and houses
D.Country B has a comparative advantage in producing both meat and houses
7) A study of mass-transit systems in American cities revealed that in the long run
revenues generally decline after substantial fare increases. This would suggest that:
A.The demand for mass transit is price-elastic in the long run
B.The demand for mass transit is price-inelastic in the long run
C.Mass-transit service deteriorates in the long run as price rises
D.There are few good substitutes for such systems in urban areas
8)
If we plotted the given data on a graph with R&D expenditures on the horizontal axis,
the:
A.interest-rate cost-of-funds curve would be a vertical line.
B.interest-rate cost-of-funds curve would be a horizontal line.
C.expected-rate-of-return curve would slope upward.
D.expected-rate-of-return curve would be a horizontal line.
9) In the United States, “farm products” are generally produced in more ___________
markets, while “food products” tend to be sold in markets that are more ____________.
A.monopolistic; competitive
B.competitive; oligopolistic
C.oligopolistic; competitive
D.oligopolistic; monopolistic
10)
11) When producers do not produce the efficient amount of a product because they are
unable to charge consumers what they are willing to pay for it, then we have a:
A.Demand-side market failure
B.Supply-side market failure
C.Competitive market
D.Monopolistic market
12) Which of the following statements is false?
A.In recent years, the United States has had large annual trade deficits in goods and
services.
B.The United States imports some of the same categories of goods as it exports.
C.China has the largest share of world exports.
D.As a percentage of GDP, U.S. exports are the highest among the industrially
advanced nations.
13) The World Bank operates primarily as a:
A.Deposit institution for nations’ gold supplies
B.Coordinator for private banks in major nations
C.Lender of last resort to less developed nations
D.U.S. government agency that supervises banks worldwide
14) If the U.S. dollar depreciates relative to the Russian ruble, the ruble:
A.will be less expensive to Americans.
B.may either appreciate or depreciate relative to the dollar.
C.will appreciate relative to the dollar.
D.will depreciate relative to the dollar.