1) Suppose that Julia receives a $20 gift card for the local coffee shop, where she only
buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then
we can conclude that Julia:
A.should only buy muffins.
B.should only buy lattes.
C.can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods.
D.can buy 5 lattes and 10 muffins with her $20 gift card.
2) A particular woman is denied on-the-job training because women on average are
more likely to drop out of the workforce than men. This illustrates:
A.occupational segregation.
B.the crowding model.
C.the taste-for-discrimination model.
D.statistical discrimination.
3) In 2011, the U.S. unionization rate was:
A.5.5 percent, down by nearly one-half of the rate in the mid-1950s.
B.14.8 percent, up by about one-fourth of the rate in the mid-1950s.
C.11.8 percent, down by more than one-half of the rate in the mid-1950s.
D.21.2 percent, down by 4 percentage points from the mid-1950s.
4) Agricultural price supports have been criticized because they:
A.Hasten the exodus of labor from agriculture
B.Subsidize consumers at the expense of farmers
C.Help large-scale farmers rather than small farmers
D.Create product shortages
5) Two months ago, the Maryville Shirt company sold 2000 shirts at $30 per shirt. Last
month the company raised its price to $35 per shirt and sold 3000 shirts. Evidently the
company experienced a(n):
A.Decrease in demand
B.Increase in demand
C.Decrease in supply
D.Increase in supply
6) Economic immigrants:
A.are defined as any international migrants that have an impact on the economy.
B.are defined as international migrants motivated by economic gain.
C.only impact the economy if they enter the country legally.
D.include not only people, but also any capital that migrates from another country.
7) If a 5 percent cut in the price of a product causes the quantity demanded to rise by 10
percent, the demand is:
A.Inelastic
B.Elastic
C.Unit elastic
D.Perfectly elastic
8) An “increase in the quantity supplied” suggests a:
A.Rightward shift of the supply curve
B.Movement down along the supply curve
C.Movement up along the supply curve
D.Leftward shift of the supply curve
9) A price discriminating pure monopolist will attempt to charge each buyer (or group
of buyers):
A.different prices to compensate for differences in the characteristics of the product.
B.the same price if per unit cost is constant for each unit of the product.
C.that price that equals the buyer’s marginal cost.
D.the maximum price each would be willing to pay.
10)
Refer to the information. Over the $11-$9 price range, demand is:
A.perfectly elastic.
B.perfectly inelastic.
C.elastic.
D.inelastic.
11) Which of the following is not one of the causes of the unequal distribution of
income in the United States?
A.Ability differences
B.Education and training
C.Job preferences and job risks
D.Income taxes and transfers
12) Use the resource demand data shown on the left and the resource supply data on the
right in answering the following question:
Refer to the given data. What will be the profit-maximizing wage rate?
A.$6.
B.$5.
C.$4.
D.$3.
13)
Refer to the graphs above for a purely competitive market in the short run. The graphs
suggest that in the long run, assuming no changes in the given information:
A.Some firms will exit from this industry
B.More buyers will come to the market
C.New firms will be attracted into the industry
D.Buyers will leave the industry
14) Which of the following is an example of a land-intensive commodity?
A.Chemicals.
B.Autos.
C.Watches.
D.Wool.
15) Which is one of the five fundamental questions that need to be dealt with in any
economic system?
A.What makes the rate of unemployment low?
B.Who will be the richest group in the economy?
C.How will goods and services be produced?
D.How high should the prices of goods and services be?
16)
Refer to the diagram for a nondiscriminating monopolist. Demand is elastic:
A.in the q1q3 output range.
B.only for outputs greater than q4.
C.for all levels of output less than q2.
D.for all levels of output greater than q2.
17) Which of the following is not a major common topic of collective bargaining?
A.Union status
B.Product marketing
C.Grievance procedures
D.Seniority and job security
18) A decline in the price of resource A will:
A.increase the demand for complementary resource B
B.shift the demand curve for A to the left.
C.shift the demand curve for A to the right.
D.reduce the demand for complementary resource B