1) A firm charged with monopolizing a market is less likely to be convicted if:
A.the court accepts a broad definition of the market.
B.the court accepts a narrow definition of the market.
C.it has gained its monopoly through abusive means.
D.it sells its product to other firms, rather than directly to consumers.
2) The median-voter model implies that a political office seeker will:
A.adopt more extreme views when seeking his or her party’s nomination than when
running against the other party’s opponent.
B.adopt less extreme views when seeking his or her party’s nomination than when
running against the other party’s opponent.
C.favor extensive government spending because demand curves for public goods are
added vertically rather than horizontally.
D.favor the private resolution of externality problems rather than governmental
intervention.
3) Deadweight losses occur when the quantity of an output produced is:
A.less than, but not when it is greater than, the competitive equilibrium quantity
B.greater than, but not when it is less than, the competitive equilibrium quantity
C.less than or greater than the competitive equilibrium quantity
D.such that the marginal benefit of the output is just equal to the marginal cost
4) Which of the following is considered to be an economic resource?
A.Rent
B.Money
C.Interest
D.Capital
5) The first commercial introduction of transparent tape is an example of:
A.innovation.
B.invention.
C.creative destruction.
D.diffusion.
6)
Refer to the budget line shown in the diagram. The absolute value of the slope of the
budget line is:
A.MUC/MUD.
B.one-half.
C.PD/PC.
D.PC/PD.
7) Henry George and the single-tax movement believed in all of the following, except:
A.Rental income is unfair because landlords do not really earn it from any productive
effort
B.Rental income should be taxed heavily, and should be the primary source of revenues
for the government
C.Taxing rental income would adversely affect allocative efficiency because the tax
would change how landlords use their land
D.The single-tax on rent would not adversely impact the society’s productive efficiency
8) Before his death in 2011, Steve Jobs made billions of dollars as a tremendously
successful:
A.Inventor of new stuff
B.Entrepreneur and innovator
C.Manager of a large corporation
D.Investor in various corporate stocks
9)
Refer to the diagram. At output level Q:
A.marginal product is falling.
B.marginal product is rising.
C.marginal product is negative.
D.one cannot determine whether marginal product is falling or rising.
10) A tax that takes a larger proportion of income from low-income groups than from
high-income groups is a:
A.stabilizing tax.
B.regressive tax.
C.progressive tax.
D.proportional tax.
11) Which of the following has contributed to large U.S. trade deficits in recent years?
A.China fixing its exchange rate.
B.Rapid decreases in the price of oil that have triggered dramatic increases in oil
imports.
C.A rising U.S. saving rate.
D.All of these have contributed.
12) Property rights are important because they:
A.ensure an equal distribution of income.
B.encourage cooperation by improving the chances of mutually agreeable transactions.
C.guarantee that any exchange will make all parties better off than prior to the
exchange.
D.allow the government to control how resources are allocated.
13)
Refer to the data. The Herfindahl index for the industry is:
A.1,600
B.1,800
C.18,000
D.80
14)
Refer to the above supply and demand graph. In the graph, line S is the current supply
of this product, while line S1 is the optimal supply from the society’s perspective. This
figure suggests that there is (are):
A.External benefits from the production of this product
B.External costs in the production of this product
C.Currently an underallocation of resources toward producing this good
D.Positive externalities from producing the good