1) Suppose a college economics department decides to use a single economics text for
all sections of principles of economics. Also assume that the three individual members
of the textbook selection committee have the following preferences.
Assuming all other textbook qualities except analytical level are the same,
paired-choice majority voting will result in the committee:
A.being deadlocked and unable to decide on a book.
B.selecting the C/F book.
C.selecting the M/B book.
D.selecting the O/S book.
2) The ability of a good or service to satisfy wants is called:
A.utility maximization.
B.opportunity cost.
C.revenue potential.
D.utility.
3) Kara was earning $40,000 per year. When her income rose to $60,000 per year, she
enjoyed the higher level of consumption for a while, but eventually she was no more
happy than when she earned $40,000 (assume prices didn’t change over this time
period). Economist Richard Easterlin described this as:
A.anchoring.
B.the endowment effect.
C.irrational economic behavior.
D.the hedonic treadmill.
4) The following table gives data for the market for a product.
Refer to the table above. If an excise tax of $3 per unit is imposed on this product, the
tax revenue for the government will be:
A.$60
B.$50
C.$90
D.$70
5) The tablet-computer market is best characterized as a(n):
A.Pure competition
B.Monopolistic competition
C.Oligopoly
D.Monopoly
6) Suppose the balance on the financial account is +$200 billion and the balance on the
capital account is +$2 billion. The size of the current account is:
A.+$200 billion.
B.-$202 billion.
C.-$198 billion.
D.+$2 billion.
7) According to the Office of Immigration Statistics, approximately what percentage of
legal immigrants to the United States in 2011 were refugees?
A.1.3 percent.
B.4.7 percent.
C.13 percent.
D.16 percent.
8) Which of the following is an item in the current account balance of the United
States? The purchase of:
A.A U.S. company by a foreign company
B.Stock in a foreign corporation by a U.S. company
C.Insurance in the United States by a foreign company
D.A United States Treasury bond by a wealthy foreigner
9) Proprietary income refers to:
A.revenue flowing to the government from taxes.
B.money borrowed by the government to finance its operations.
C.revenue generated by government-run businesses.
D.transfer payments from the government to the owners of property resources.
10) Which market structure is most likely to have the means and some incentive to
innovate?
A.Oligopoly
B.Pure monopoly
C.Pure competition
D.Monopolistic competition
11)
Refer to the diagram for a pure monopolist. If a regulatory commission seeks to achieve
the socially optimal allocation of resources to this line of production, it will set a price
of:
A.P1.
B.P3.
C.P2.
D.P4.
12) The current account on a nation’s balance of payments statement includes all of the
following except:
A.The nation’s goods exports
B.The nation’s goods imports
C.Net investment income
D.Net purchases of assets abroad
13) The production technique that is most efficient is the one that produces a given
amount of output:
A.using the least amount of labor resources
B.at the highest price per unit
C.at the lowest cost per unit
D.that yields the highest revenues
14) Allocative efficiency refers to:
A.the use of the least-cost method of production.
B.the production of the product mix most wanted by society.
C.the full employment of all available resources.
D.production at some point inside of the production possibilities curve.
15) African-American worker Jackson earns $30,000 per year; white worker Johnson
earns $40,000 per year. On the basis of this information we can conclude that:
A.it is not clear whether discrimination is present in this situation.
B.there are no discriminatory forces at work in the labor market.
C.Jackson is being discriminated against, but the dollar amount is unclear.
D.Jackson is being discriminated against in the amount of $10,000 per year.