1) Which would be an example of public ownership as a response to natural
monopolies?
A.Federal Energy Regulatory Commission
B.Federal Trade Commission
C.U.S. Food and Drug Administration
D.U.S. Postal Service
2) Which of the following goods would most probably be an inferior good?
A.French wines
B.Generic beer
C.Theater tickets
D.Steak
3) Income gains in the poorest DVCs may increase population growth initially, at least
for a while, due to the following reasons, except:
A.Declining death rates
B.Increasing birth rates
C.Reduced infant mortality
D.Decreasing life expectancy
4) The American Medical Association, a physicians’ union, is a good example of a(n):
A.Demand-enhancing union
B.Craft union
C.Inclusive union
D.Industrial union
5) Economists use the term imperfect competition to describe:
A.all industries that produce standardized products.
B.any industry in which there is no nonprice competition.
C.a pure monopoly only.
D.those markets that are not purely competitive.
6) A graph that shows the maximum combinations of two goods which a consumer can
purchase with a given money income is:
A.The production possibilities curve
B.An indifference curve
C.A demand curve
D.A budget line
7) Suppose the supply of product X is perfectly inelastic. If there is an increase in the
demand for this product, equilibrium price:
A.will decrease but equilibrium quantity will increase.
B.and quantity will both decrease.
C.will increase, but equilibrium quantity will decline.
D.will increase, but equilibrium quantity will be unchanged.
8) Most of the state and local government employees are in what area?
A.Health care
B.Education
C.Administration
D.Highways
9) About how many people were employed in the U.S. health care industry in 2010?
A.7 million
B.17 million
C.34 million
D.42 million
10) If the price of gasoline increases significantly, then we’d expect the demand curve
for large trucks and SUVs to:
A.Shift to the right
B.Shift to the left
C.Become upward-sloping
D.Not shift, but there will be a movement along that demand curve