1) (Consider This) Which of the following nations has implemented policies that pay
women to have additional children?
A.Russia.
B.France.
C.Italy.
D.All of these nations.
2) (Last Word) In The General Theory of Employment, Interest, and Money:
A.Adam Smith stated his idea of the invisible hand.
B.Thorstein Veblen poked fun at the leisure class.
C.John Maynard Keynes attacked the classical economist’s contention that recession or
depression will automatically cure itself.
D.J. B. Say developed “Say’s law.”
3)
Refer to the diagram above, assuming that the firm represented is operating on curve
TC0. How much will the firm extract this year?
A.500.
B.750.
C.1,000.
D.It cannot be determined with the information given.
4) assume the price of product y (the quantity of which is on the vertical axis) is $15
and the price of product x (the quantity of which is on the horizontal axis) is $3. also
assume that money income is $60. the absolute value of the slope of the resulting
budget line:
a.is 5
b.is 1/5
c.is 4
d.is 20
5) at the economy’s natural rate of unemployment:
a.the economy achieves its potential output.
b.there is only a relatively small amount of cyclical unemployment.
c.only frictional unemployment exists.
d.only structural unemployment exists.
6) if the marginal tax rate is greater than the average tax rate, then:
a.the average tax rate must be rising.
b.the average tax rate must be falling.
c.the average tax rate may be either rising or falling.
d.the tax is regressive.
7) The Food, Conservation, and Energy Act of 2008:
A.ended 60 years of U.S. price supports for American grain crops.
B.restored the U.S. price support system (for currently grown crops) that was ended in
the Freedom to Farm Act of 1996.
C.ended the “freedom to plant” approach of the Freedom to Farm Act of 1996 and
restored acreage allotments.
D.maintained the “freedom to plant” and “direct-payment” features of the Freedom to
Farm Act of 1996, and also provides countercyclical payments and marketing loans to
assist farmers.
8) refer to the above diagram. at the profit-maximizing output, the firm will realize:
a.a loss equal to bcfg
b.a loss equal to acfh
c.an economic profit of acfh
d.an economic profit of abgh
9) The real burden of an increase in the public debt:
A.may be very small or conceivably zero when the economy is in a severe depression.
B.will be smaller when full employment exists than when the economy has large
quantities of idle resources.
C.can be shifted to future generations if the debt is internally financed.
D. can best be measured by the dollar increase in the size of the debt.
10) marginal utility:
a.is equal to total utility divided by the number of units consumed.
b.is equal to total utility if the demand curve is linear.
c.increases as more of a product is consumed.
d.diminishes as more of a product is consumed.
11) Differences in production efficiencies among nations in producing a particular good
result from:
A.different endowments of fertile soil.
B.different amounts of skilled labor.
C.different levels of technological knowledge.
D.all of these.
12) An upward shift of the aggregate expenditures schedule might be caused by:
A.a decrease in exports, with no change in imports.
B.a decrease in imports, with no change in exports.
C.an increase in exports, with an equal decrease in investment spending.
D.an increase in imports, with no change in exports.
13)
refer to the above data for a nondiscriminating monopolist. at its profit-maximizing
output, this firm will be operating in the:
a.perfectly elastic portion of its demand curve.
b.perfectly inelastic portion of its demand curve.
c.elastic portion of its demand curve.
d.inelastic portion of its demand curve.
14) roughly what portion of u.s. total health spending is paid for by private and public
insurance?
a.one-tenth
b.one-fourth
c.four-fifths
d.one-half
15) because there are costs to migration:
a.complete wage equalization is unlikely to occur, even if national governments impose
no restrictions on migration.
b.migrants are more likely to move to countries far from their origin nation.
c.migrant and domestic-born workers are unlikely to be substitute resources.
d.wage equalization will only occur if migrant and domestic-born workers are
complementary resources.
16) (consider this) according to the council of economic advisers:
a.skilled immigrants regularly displace domestic-born workers.
b.skilled immigrants pay more in taxes than they receive in services from the
government.
c.immigration is a net drain on the u.s. economy and should be more tightly restricted.
d.children of immigrants frequently lack the skills to perform well academically,
particularly in math and science.
17) The effect of imposing a lump-sum tax is to:
A.reduce the absolute levels of consumption and saving at each level of GDP and to
reduce the size of the multiplier.
B.reduce the absolute levels of consumption and saving at each level of GDP, but to not
change the size of the multiplier.
C.reduce the absolute levels of consumption and saving at each level of GDP and to
increase the size of the multiplier.
D.increase the absolute levels of consumption and saving at each level of GDP and to
increase the size of the multiplier.