1) The demographic transition view alleges that:
A.the DVCs must first accept the use of birth control techniques to increase their
standards of living.
B.population growth will only decline if mortality rates exceed birth rates.
C.if incomes first rise, population growth will then decline.
D.population growth has no bearing on a nation’s per capita income.
2)
Refer to the above graphs. Which graph shows a change in the price of X, but no
changes in the price of Y and in the buyer’s budget?
A.Graph A
B.Graph B
C.Graph C
D.Graph D
3) Answer the question on the basis of the following information is for public good. Pa
and Pb represent the prices that citizens (a) and (b), the only two people in this nation,
are willing to pay for additional units of a quantity (Qc) of the public good. Qs
represents the quantity of the public good supplied by government at each of the
collective prices.
Refer to the above information. In equilibrium, the marginal benefit and cost of the
public good will be:
A.$7
B.$6
C.$5
D.$3
4) Use the following data to answer the question. The letters A, B, and C designate
three successively larger plant sizes.
Refer to the data. Economies of scale in plant ATC-A are realized over the ___ to ___
levels of output; diseconomies of scale exist over the ___ to ___ levels of output.
A.10, 30; 40, 100
B.10, 40; 80, 100
C.10, 50; 60, 100
D.10, 70; 80, 100
5)
The graph above represents the market for a product where D1 and S1 show the initial
supply and demand curves, and supply shifts to S2 due to a sales tax. The government’s
tax revenue is represented by area:
A.FIJG
B.ACEG
C.BCEF
D.ABFG
6) In the Balance of Payments statement, a current account surplus will be matched by
a:
A.Capital and financial accounts deficit
B.Capital and financial accounts surplus
C.Trade deficit
D.Trade surplus
7) Suppose the world economy is composed of just two countries: Italy and Greece.
Each can produce steel or chemicals, but at different levels of economic efficiency. The
production possibilities curves for the two countries are shown in the graphs below.
Refer to the graphs and information above. Assume that prior to specialization and
trade, Italy and Greece preferred points I and G on their respective production
possibilities curves. As a result of complete specialization according to comparative
advantage, the resulting gains in total output will be:
A.5 steel and 15 chemicals
B.10 chemicals
C.15 steel and 5 chemicals
D.25 steel
8) Surplus agricultural labor in a developing nation usually means that there is:
A.A caste system
B.Widespread under-employment
C.Immobility of labor resources
D.Increased investment in agriculture
9) Which of the following statements is correct?
A.Both cash and noncash gift-giving cause value losses.
B.Neither cash nor noncash gift-giving causes value losses.
C.Noncash gift-giving creates a value loss, but cash gifts do not.
D.Cash gifts create a value loss, but noncash gifts do not.
10) The following table shows cost data for a firm that is selling in a purely competitive
market.
Refer to the above table. If the market price for the firm’s product is $180, the
competitive firm will produce:
A.5 units and earn economic profits of $100
B.6 units and earn economic profits of $120
C.7 units and earn economic profits of $238
D.8 units and earn economic profits of $278
11) What factor contributes to the weak economic growth in DVCs?
A.An increase in labor productivity in DVCs
B.A decrease in international debts of DVCs
C.An increase in the rate of saving in a DVC
D.A decrease in the prices of DVC natural resources
12) Consumer’s income = $12
Refer to the data. In equilibrium, the introduction of new product Z has increased this
consumer’s total utility by:
A.42 utils.
B.54 utils.
C.60 utils.
D.66 utils.
13) How would the following situations affect the equilibrium interest rate in the
loanable funds market?
(a)The states agree to abolish sales taxes.
(b)The government reduces the budget deficit.
(c)Technological improvements are made to increase expected rates of return.
14)
Refer to the diagrams. The case of an inferior good is represented by figure:
A.A
B.B
C.C
D.D
15) Which of the following will enable a nation to obtain a combination of consumer
goods and capital goods outside its production possibilities curve?
A.Full employment.
B.International specialization and trade.
C.Full production.
D.Productive efficiency.
16) An effective ceiling price will:
A.induce new firms to enter the industry.
B.result in a product surplus.
C.result in a product shortage.
D.clear the market.
17) Accounting profits equal total revenue minus:
A.total explicit costs.
B.total implicit costs.
C.total economic costs.
D.economic profits.