1) Sales taxes on consumer goods are regressive because poor people consume a larger
proportion of their incomes than do rich people.
2)
Refer to the diagram. If demand fell to the level of FNJ, there would be no output at
which the firm could realize an economic profit.
3) A highly progressive tax takes relatively more from the rich than it does from the
poor.
4) The oligopolist’s kinked-demand curve is highly elastic below and highly inelastic
above the going product price.
5) An income elasticity coefficient of -1.8 means the product is a normal good.
6) Unemployment compensation is financed by taxes levied on employers.
7) Profits account for a smaller share of total U.S. income than interest income.
8) For a given future value and interest rate, the discounted present value will become
larger as the time period gets longer.
9)
Refer to the diagram for a monopolistically competitive producer. The firm is:
A.minimizing losses in the long run.
B.minimizing losses in the short run.
C.realizing a normal profit in the long run.
D.about to leave the industry.
10) In 2011, U.S. governments (local, state, and Federal) employed roughly how many
percent of the U.S. labor force?
A.5 percent
B.16 percent
C.42 percent
D.64 percent
11) An industry comprised of four firms, each with about 25 percent of the total market
for a product, is an example of:
A.monopolistic competition.
B.oligopoly.
C.pure monopoly.
D.pure competition.
12) A business is employing inputs such that the marginal product of labor is 40 and the
marginal product of capital is 90. The price of labor is $20 and the price of capital is
$30. If the business wants to minimize costs while keeping output constant, then it
should:
A.Use more labor and less capital
B.Use less labor and less capital
C.Use less labor and more capital
D.Make no change in resource use
13) Variable costs are:
A.Sunk costs
B.Costs that change every day
C.Costs that change with the level of production
D.The change in total cost due to the production of an additional unit of output
14) Which of the following is a nationwide Federal health care program available to
Social Security beneficiaries and persons with disabilities?
A.Medicaid
B.Medicare
C.PPOs
D.HMOs
15) A competitive market can produce economically efficient outcomes if these
conditions are met, except:
A.The market produces only units for which benefits are at least equal to cost
B.The market demand curve reflects the buyers’ full willingness to pay
C.The market supply curve reflects all costs of production
D.The market produces only units for which costs are at least equal to benefits
16) Which of the following firms was not a ‘start-up”?
A.Google
B.Starbucks
C.Apple
D.Lucent Technologies
17)
Refer to the figure. The optimal level of immigration in this country:
A.is Q1.
B.is Q2.
C.is Q3.
D.cannot be determined with the information given.
18) Historically, many aspects of U.S. farm policies had their origins in the:
A.Agricultural Extension Service Act.
B.Agricultural Adjustment Act.
C.Homestead Act.
D.Land Grant Act.
19) Answer the question on the basis of the following data:
Refer to the given data. If your taxable income is $4,000, your average tax rate will be:
A.20 percent.
B.15 percent.
C.10 percent.
D.5 percent.
20) With respect to the pure monopolist’s demand curve, it can be said that:
A.the stronger the barriers to entry, the more elastic is the monopolist’s demand curve.
B.price exceeds marginal revenue at all outputs greater than 1.
C.demand is perfectly inelastic.
D.marginal revenue equals price at all outputs.
21) How can a rubber band be used to explain elasticity and inelasticity of demand?
22) Describe the major sources of revenue and major types of expenditures at each level
of government.
23) Why is a monopolist a price maker?
24) Explain what is meant by a command economy.
25) How might competition eradicate discrimination? Historically, has this been
observed?
26) Discuss how technology has transitioned music to a public good. How can the
music industry remain profitable?
27) (Consider This) How is marginal revenue product reflected in winner-take-all
markets such as in the music industry?
28) A student asserts in class that the income and substitution effects lead to a decrease
in the consumption of a normal good when the price decreases. Do you agree with the
statement? Explain using an example.
29) Describe the purpose of the Food, Conservation and Energy Act of 2008.
30) What conditions does the PPACA place on employers?