1) In the United States, the rate of unionization is:
A.higher for sales workers than for transportation workers.
B.lower for managers than for teachers.
C.lower for production workers than for sales workers.
D.higher for social workers than for protective service workers.
2)
Beginning in 1990, the Federal government:
A.Decreased the annual immigration quota from 700,000 to 500,000
B.Increased the annual immigration quota from 500,000 to 700,000
C.Increased the annual immigration quota from 250,000 to 500,000
D.Increased the annual immigration quota from 500,000 to 1 million
3)
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with “1” being the top preference. In a paired-choice vote between
a park and a jail:
A.A majority of the voters would favor the jail, 3-to-0
B.A majority of the voters would favor the park, 3-to-0
C.A majority of the voters would favor the jail, 2-to-1
D.A majority of the voters would favor the park, 2-to-1
4) Answer the question based on the demand and cost schedules for a monopolistically
competitive firm given in the table below.
Refer to the above table. What output quantity will the monopolistically competitive
firm produce to maximize profits?
A.2
B.3
C.5
D.6
5) Which of the following is a market imperfection that might explain persistent wage
differentials within an occupation?
A.Geographical immobility of workers.
B.Readily available information about job opportunities and pay.
C.Principal-agent problems.
D.Compensating wage differentials.
6) The sum of the squared values of market shares of firms in an industry is referred to
as the:
A.Concentration ratio
B.Herfindahl index
C.Variance value
D.Antitrust index
7) The equilibrium point in the market is where S and D curve intersect.
Refer to the graph above. At equilibrium, the minimum acceptable revenue that sellers
would have been willing to receive is represented by the area:
A.b
B.b + c
C.a + b
D.c
8) When the benefits of conservation and future use are excluded from a cost-benefit
analysis, there is a tendency to:
A.more efficiently allocate resources.
B.overvalue future resources by considering them “priceless.”
C.stop resource extraction.
D.extract and use resources as quickly as possible.
9) Ben is exhausting his money income consuming products A and B in such quantities
that MUa/Pa = 5 and MUb/Pb = 8. Ben should purchase:
A.more of A and less of B
B.more of B and less of A
C.more of both A and B
D.less of both A and B
10) Behavioralists believe that:
A.if four or fewer firms control more than half of the market for a product, then the
Sherman Act is being violated.
B.industries should be judged on the basis of their price-output behavior and their
technological progressiveness.
C.there is no evidence that any monopolistic industry has abused its market power.
D.all concentrations of economic power are socially undesirable.
11)
Studies indicate that a lack of skill transferability in the U.S. has a particularly large effect
on the earnings of:
A.Domestic workers with low levels of human capital
B.First-generation immigrants
C.Immigrants who lack English-language skills
D.Highly-educated domestic workers
12) The following statements apply when a firm’s rivals imitate its innovation, except:
A.It tends to reduce the originator’s profits
B.It enhances the innovator’s returns to its R&D expenditures
C.It is often the path to widespread diffusion of the innovation
D.It helps other firms incorporate innovative features into their own operations
13)
Refer to the above graph. Which of the following statements is correct?
A.Demand is perfectly elastic
B.Demand perfectly inelastic
C.Supply is perfectly elastic
D.Supply is perfectly inelastic