1) Property rights give to some people the right to coerce others into giving up their
property.
2) The Celler-Kefauver Act outlawed interlocking directorates.
3) One of the world’s greatest economic challenges over the coming decades will be to
supply the resources that will be demanded, as living standards in poorer countries rise
to rich-country standards.
4) Have a high fixed salary is what motivates entrepreneurs to make prudent decisions
is dealing with business risk.
5) Better Business Bureaus in various cities exist partly in order to try to deal with
inadequate buyer information about sellers.
6)
The majority of international migrants move to countries relatively close to their home
countries because close proximity reduces the cost of the move relative to anticipated
benefits.
7) Most industrialized countries emphasize private health insurance paid by employers,
to provide coverage for most workers in each nation.
8) One reason for the high wage rates in the United States and other advanced
economies is the high productivity of labor in these countries.
9) The demographic transition view of population growth believes that slower
population growth will lead to rising incomes.
10) Unfair advertising practices are investigated by the Federal Trade Commission.
11) U.S. hospitals provide a significant amount of uncompensated or “free” health care
every year to the uninsured poor who are rushed in for emergency or critical care.
12) The purchasing-power-parity theory holds that exchange rates should equalize the
inflation rates among the trading nations.
13) If nations adopt a gold standard where various countries’ money supply is tied to
gold, then there will in effect be a fixed exchange-rate system.
14) The following data are for a series of increasingly extensive flood control projects:
Refer to the data. Plan C entails:
A.marginal benefits in excess of marginal costs.
B.fewer spillovers than either Plan A or Plan B.
C.an overallocation of resources to flood control.
D.an underallocation of resources to flood control.
15) Suppose losses cause industry X to contract and, as a result, the prices of relevant
inputs decline. Industry X is:
A.a constant-cost industry.
B.a decreasing-cost industry.
C.an increasing-cost industry.
D.encountering X-inefficiency.
16) Compensating differences in wages, pay workers for:
A.differences in worker training and skills.
B.differences in the nonmonetary characteristics of jobs.
C.geographic immobility.
D.discrimination in hiring and firing.
17) If an economy is operating on its production possibilities curve for consumer goods
and capital goods, this means that:
A.it is impossible to produce more consumer goods.
B.resources cannot be reallocated between the two goods.
C.it is impossible to produce more capital goods.
D.more consumer goods can only be produced at the cost of fewer capital goods.
18) Benefits from international trade are based on the following differences, except:
A.In resource endowments
B.In technological capabilities
C.In product quality and other attributes
D.In income levels
19) Which of the following statements is not correct?
A.If the relative change in price is greater than the relative change in the quantity
demanded associated with it, demand is inelastic.
B.In the range of prices in which demand is elastic, total revenue will diminish as price
decreases.
C.Total revenue will not change if price varies within a range where the elasticity
coefficient is unity.
D.Demand tends to be elastic at high prices and inelastic at low prices.
20) The market system automatically corrects a surplus condition in a competitive
market by:
A.Raising the price of the commodity in question while increasing the quantity
demanded
B.Raising the price of the commodity in question while decreasing the quantity
demanded
C.Reducing the price of the commodity in question while increasing the quantity
demanded
D.Reducing the price of the commodity in question while decreasing the quantity
demanded
21) The Lorenz curve portrays:
A.the functional distribution of income.
B.the ratio of labor to capitalist income.
C.the personal distribution of income.
D.income equality.
22) In the United States, the rate of unionization is:
A.higher in mining than in government.
B.lower in transportation than in agriculture.
C.higher in transportation than in retail trade.
D.lower in government than in finance, insurance, and real estate.
23) Which of the following statements about taxes and government spending is correct?
A.Despite the overall progressive tax system, government expenditures
disproportionately favor the rich and result in a system that is slightly regressive.
B.The progressive tax system is almost perfectly offset by regressive expenditures,
making the overall system proportional.
C.The regressive tax system is offset by expenditures directed toward lower-income
households, making the overall system proportional.
D.The overall system of taxes and spending is progressive, as over $1 trillion per year
gets transferred from upper-income households to lower- and middle-income
households.
24) Evaluate the benefits and cons of deregulating a governed industry.
25) How does the age of prospective migrants affect the costbenefit evaluation of
moving to another nation?
26) What is the difference between insurable and uninsurable risk?
27) State two reasons why dire predictions of falling standards of living and a decline in
resource availability proved to be wrong.
28) How does innovation differ from invention and diffusion? How does innovation
affect competition among firms?
29) Answer the question on the basis of the following information. The demand for
commodity X is represented by the equation P = 10 – 0.2Q and supply by the equation P
= 2 + 0.2Q.
Refer to the given information. The equilibrium quantity is:
A.10
B.20
C.15
D.30
30) Compare the special-interest effect with rent seeking.
31) Evaluate this statement: A monopolistically competitive industry would be more
efficient if there were fewer firms.
32)