1)
Refer to the above graph. The Gini ratio would be greatest for which curve?
A.a
B.b
C.c
D.d
2) In answering the question, assume a graph in which dollars are measured on the
vertical axis and output on the horizontal axis.
Refer to the information. For a purely competitive firm:
A.marginal revenue will graph as an upsloping line.
B.the demand curve will lie above the marginal revenue curve.
C.the marginal revenue curve will lie above the demand curve.
D.the demand and marginal revenue curves will coincide.
3)
Between the 1970’s and 1998, immigrants:
A.Were more likely to receive public assistance than people born in the United States
B.Were less likely to receive public assistance than people born in the United States
C.Were just as likely to receive public assistance as people born in the United States
D.Did not qualify for public assistance
4) The efficiency loss of a tax is the idea that:
A.in addition to taking income from the citizenry, taxes also increase the rate of
inflation.
B.taxes cause a decline in output for which marginal benefit exceeds marginal cost.
C.taxes diminish incentives to work.
D.government spends dollars less efficiently than do households and businesses.
5) If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21,
then from 20 to 21 units of product the:
A.Marginal cost is decreasing
B.Marginal cost equals average total cost
C.Marginal cost equals average variable cost
D.Average total cost equals average variable cost
6) The low per capita outputs of the DVCs are explained by:
A.insufficient saving and investment.
B.overinvestment in human capital.
C.slow population growth.
D.excessively rapid technological advance.
7) When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls
and fewer Adidas soccer balls. Which of the following best explains Ronaldo’s decision
to buy more Nike soccer balls?
A.The substitution effect.
B.The income effect.
C.An increase in the demand for Nike soccer balls.
D.The price effect.
8)
Refer to the diagram where curves (a) through (e) are Lorenz curves for five different
countries. Income is equally distributed in:
A.none of the countries shown.
B.country b.
C.countries a and e.
D.country a.
9) In a graph for a firm in pure competition with the quantity of output measured on the
horizontal axis, the total revenue curve is:
A.Downward-sloping
B.Horizontal
C.Vertical
D.Upward-sloping
10) Poverty is a condition where a person or family does not have the means to:
A.Satisfy all wants
B.Save enough for the future
C.Earn a stable income
D.Meet basic needs
11)
If the budget line shifts from BB to bb in the diagram, we can infer that the:
A.price of Y has increased and the price of X has decreased.
B.price of Y has decreased and the price of X has increased.
C.prices of both X and Y have increased.
D.prices of both X and Y have decreased.
12) Digital cameras and memory cards are:
A.substitute goods.
B.complementary goods.
C.independent goods.
D.inferior goods.
13) Use the following graph of the demand for coffee:
Refer to the above diagram of three demand curves for coffee. An increase in the price
of coffee, other factors constant, would cause a:
A.Shift from D1 to D3
B.Shift from D1 to D2
C.Movement from point a to point b
D.Movement from point b to point a
14) The tendency of people to believe that something they own is more valuable than an
identical item that they do not own is known in prospect theory as the:
A.Endowment effect
B.Anchoring effect
C.Status quo bias
D.Confirmation bias
15)
Refer to the diagram. The budget line shift that moves the consumer’s equilibrium
position from point A to point B suggests:
A.an increase in the quantity of Y demanded.
B.a decrease in the quantity of Y demanded.
C.a leftward shift in the demand curve for Y.
D.a rightward shift in the demand curve for Y.