1) ATMs and human bank tellers:
A.are substitute resources.
B.are capital goods.
C.have both declined in number because of bank mergers.
D.are complementary resources.
2) What health care program provides payment for medical benefits to certain
low-income people, including the blind, the elderly, persons with disabilities, children,
and adults with dependent children?
A.Medicaid
B.Medicare
C.HMOs
D.PPOs
3)
Refer to the demand and supply diagram that relates to the health care market. Without
health insurance, the equilibrium price and quantity of health care would be:
A.P1 and Q1
B.P1 and Q2
C.P2 and Q2
D.P2 and Q1
4)
Refer to the graph. Other things equal, an increase in the price of substitute resource
would cause a:
A.shift from D2 to D3 assuming the substitution effect exceeds the output effect.
B.move from a to b on D1
C.move from b to a on D1
D.shift from D3 to D2 assuming the substitution effect exceeds the output effect.
5)
Refer to the above graph for a pure monopoly. If the government regulated the
monopoly and made the firm set a fair-return price, what price and quantity levels
would we observe in the short run?
A.P1 and Q1
B.P2 and Q3
C.P3 and Q2
D.P4 and Q1
6) The supply curve for a monopolist is:
A.perfectly elastic.
B.upsloping.
C.that portion of the marginal cost curve lying above minimum average variable cost.
D.nonexistent.
7) When central planners in a command economy end up having a huge surplus of
shoes and widespread shortages of bread in their economy, they have failed to attain:
A.Productive efficiency
B.Allocative efficiency
C.Minimum opportunity costs
D.Maximum process and revenues
8) Other things being equal, a firm in a cartel will most likely cheat on a price-fixing
agreement by:
A.Increasing price and restricting its output
B.Organizing promotions of the product
C.Secretly increasing sales to a large number of small customers
D.Secretly lowering price and increasing sales to a few customers
9) Specialization and trade based on comparative advantage allow nations to attain the
following results, except:
A.Higher combined output
B.Higher consumption and standard of living
C.Rising total employment
D.Consuming combinations of products that are outside their PPCs
10) Melanie and Oli are competing Pacific halibut fishers. Both have been allocated
ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie’s cost per ton is
$20; Oli’s cost per ton is $28.
Refer to the information given and assume that the market price of Pacific halibut is
$40 per ton. If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit
of 2,000 tons, their combined profit would be:
A.$28,000.
B.$32,000.
C.$30,000.
D.$54,000.
11) In 2012, corporate income taxes contributed about what percentage of U.S. Federal
tax revenues?
A.10 percent
B.25 percent
C.50 percent
D.70 percent
12) Use the table below to answer the question. The table shows the hypothetical
demand and supply schedule for health care
Refer to the above table. If there was no health insurance, the equilibrium price and
quantity of health care would be:
A.$600 and 300 units
B.$400 and 400 units
C.$500 and 400 units
D.$400 and 500 units
13) Answer the question on the basis of the given supply and demand data for wheat:
Refer to the data. If the price in this market was $4:
A.the market would clear; quantity demanded would equal quantity supplied.
B.buyers would want to purchase more wheat than is currently being supplied.
C.farmers would not be able to sell all their wheat.
D.there would be a shortage of wheat.
14) If an employer has to raise the wage rate of workers in order to employ more labor,
then the marginal labor cost curve of the employer:
A.Lies above the supply curve of labor
B.Is the supply curve of labor that it faces
C.Lies below the supply curve of labor
D.Is a downward-sloping curve
15)
Assumptions: (1) Employers in this market are willing and able to ignore minimum
wage laws; (2) Sd represents the supply of domestic-born (and legal immigrant)
workers; (3) St represents the total supply of workers in this labor market (Sd plus
illegal immigrants); and (4) unless otherwise stated, illegal immigration is not
effectively blocked by the government.
Refer to the given figure and assumptions. How many domestic-born (and legal
immigrant) workers will be hired at equilibrium?
A.200,000.
B.250,000.
C.350,000.
D.450,000.
16)
In the payoff matrix shown:
A.neither firm has a dominant strategy.
B.both firms have a dominant strategy to price high.
C.both firms have a dominant strategy to price low.
D.one firm has a dominant strategy to price high, the other to price low.
17) Buck carefully plans out an early morning exercise routine to lose weight and get
fit. When it’s time to work out, however, Buck just “doesn’t feel up to it” and decides to
sleep in. Behavioral economics would say that Buck:
A.weighed the costs and benefits and made a rational economic decision to sleep in.
B.used System 1 of his brain to formulate his workout plan, but then gave in to System
2 when he chose to sleep in.
C.used System 2 of his brain to formulate his workout plan, but then gave in to System
1 when he chose to sleep in.
D.is fundamentally lazy and incapable of sticking to a workout plan.