1)
Refer to the above table, which shows the ranked preferences of voters for three
alternative projects, with “1” being the top preference. This situation illustrates the
voting inconsistency where a majority of voters prefer the:
A.Stadium over the park, the park over the jail, and the jail over the stadium
B.Park and jail over the stadium, and the jail over the park
C.Stadium over the jail, the jail over the park, and the park over the stadium
D.Stadium and jail over the park, and the park over the jail
2) Which of the following nations has implemented policies that pay women to have
additional children?
A.Russia.
B.France.
C.Italy.
D.All of these nations.
3) At the present time, the largest percentage of the national incomes of the low-income
DVCs is used for:
A.imports of the finished products of foreign industries.
B.food.
C.infrastructure.
D.industrial development.
4)
Refer to the diagram for a monopolistically competitive firm. Long-run equilibrium
price will be:
A.above A
B.EF
C.A
D.B
5) The difference between household assets and liabilities is referred to as:
A.Debt
B.Income
C.Net worth
D.Expenditures
6) The demand for land is:
A.perfectly elastic.
B.perfectly inelastic.
C.upsloping.
D.downsloping.
7) When there is allocative efficiency in a purely competitive market for a product, the
minimum price producers are willing to accept is:
A.Less than marginal benefit
B.Greater than marginal cost
C.Equal to the amount of efficiency or deadweight losses
D.Equal to the maximum price consumers are willing to pay
8) Scientists studying human behavior have found that people tend to:
A.Always make rational decisions
B.Make systematic errors in their decisions
C.Make only random errors in their decisions
D.Always make decisions that are not rational
9) If a financial portfolio manager in the U.S. buys British company stocks in the
London Stock Exchange, this would involve:
A.A demand for British pounds in the foreign exchange market
B.A supply of British pounds in the foreign exchange market
C.No effect on the demand for British pounds in the foreign exchange market
D.A demand for U.S. dollars in the foreign exchange market
10) The likelihood of a cartel being successful is greater when:
A.firms are producing a differentiated, rather than a homogeneous, product.
B.cost and demand curves of various participants are very similar.
C.the number of firms involved is relatively large.
D.the economy is in the recession phase of the business cycle.
11) An example of a social insurance program is ____________, whereas an example of
a public assistance program is _______.
A.Temporary Assistance for Needy Families; unemployment compensation
B.Supplemental Security Income; unemployment compensation
C.Social Security; Supplemental Nutrition Assistance Program
D.Medicaid; Medicare
12) A monopolistically competitive industry is like a purely competitive industry in
that:
A.Each industry produces a standardized product
B.Nonprice competition is a feature in both industries
C.Neither industry has significant barriers to entry
D.Firms in both industries face a horizontal demand curve
13) Which of the following taxes is most likely to be shifted?
A.A general sales tax.
B.A flat-rate state income tax.
C.A progressive federal income tax.
D.A property tax on an owner-occupied residence.
14) In long-run equilibrium a purely competitive firm will operate where price is:
A.Greater than MR but equal to MC and minimum ATC
B.Greater than MR and MC, but equal to minimum ATC
C.Greater than MC and minimum ATC, but equal to MR
D.Equal to MR, MC, and minimum ATC
15) In considering real-world situations, we must recognize the fact that by “wages” in
this chapter, we mean the following, except:
A.Total price that employers pay to obtain labor
B.Total income earned by households
C.Total compensation of workers
D.Total of direct payments and fringe benefits to workers
16) Assume that the quantity of a certain type of farmland is 400,000 acres and the
demand for this land is that given in the table below.
(a)What will be the economic rent and how much land will be rented?
(b)If the productivity of the land increases such that 200,000 more acres are demanded
at each price, what will the economic rent be and how much land will be supplied?
(c)Given the new demand schedule in (b), if landowners were taxed at a rate of $200
per acre for their land, what would be the economic rent on this land after taxes and
how many acres would be rented?