1)
Refer to the above diagram. If the supply of loanable funds is S0 and the demand for
loanable funds is D0, the equilibrium interest rate and quantity of funds borrowed will
be:
A.G and A.
B.F and A.
C.F and C.
D.E and A.
2)
refer to the above diagram. rent controls are best illustrated by:
a.price a.
b.quantity e.
c.price c.
d.price b.
3) Which of the following taxes is most likely to be shifted?
A.a general sales tax
B.a flat-rate state income tax
C.a progressive Federal income tax
D.a property tax on an owner-occupied residence
4) Which of the following statements best describes the demand for agricultural
commodities?
A.It takes a small decline in price to induce a large increase in the amount of
agricultural products demanded.
B.The marginal utility of additional units of agricultural output diminishes very rapidly.
C.Small increases in income cause demand to increase by a proportionately larger
amount.
D.When price declines, the resulting substitution effect is very large.
5) which of the following pairs of nations received the most remittances from their
emigrants in 2007?
a.mexico and egypt
b.china and india
c.pakistan and iran
d.vietnam and thailand
6) If a lump-sum tax of $40 billion is imposed and the MPC is 0.6, the saving schedule
will shift:
A.downward by $24 billion.
B.upward by $24 billion.
C.downward by $16 billion.
D.upward by $16 billion.
7) Farm programs such as those of the United States and the European Union:
A.are consistent with free world trade in agricultural products.
B.cause a misallocation of agricultural resources internationally.
C.cause the United States and the European Union to underproduce, while other nations
overproduce, farm products.
D.raise productivity in developing nations.
8) the marginal rate of substitution:
a.may increase or decrease on a given indifference curve, depending on whether the
substitution or the income effect is dominant.
b.increases as one moves southeast along an indifference curve.
c.is constant at all points on the budget line.
d.declines as one moves southeast along an indifference curve.
9) The total demand for money curve will shift to the right as a result of:
A.an increase in nominal GDP.
B.an increase in the interest rate.
C.a decline in the interest rate.
D.a decline in nominal GDP.
10) Suppose the United States sets a limit on the number of tons of sugar that can be
imported each year. This is an example of a(n):
A.protective tariff.
B.revenue tariff.
C.voluntary export restriction.
D.import quota.
11) refer to the above data. which of the following represents the demand schedule for
x?
a.
b.
c.
d.
12) The labor demand curve of an imperfectly competitive seller is downward sloping:
A.solely because of diminishing marginal utility.
B.both because of diminishing returns and the necessity to lower price to sell more
output.
C.solely because product price must be reduced to sell more output.
D.solely because of diminishing returns.
13) microeconomics is concerned with:
a.the aggregate or total levels of income, employment, and output.
b.a detailed examination of specific economic units that make up the economic system.
c.positive economics, but not normative economics.
d.the establishing of an overall view of the operation of the economic system.
14) what is the net effect of illegal immigration on total employment in the united
states?
a.the net effect is zero, as illegal immigrant workers displace domestic-born workers on
a one-for-one basis.
b.total employment increases, but with some substitution of illegal immigrants for
domestic-born workers.
c.total employment decreases.
d.total employment increases, with no displacement of or substitution for domestic-born
workers.
15)
refer to the above diagram. if this competitive firm produces output q, it will:
a.suffer an economic loss.
b.earn a normal profit.
c.earn an economic profit.
d.achieve productive efficiency, but not allocative efficiency.
16) an unusually large crop of coffee beans might:
a.increase the supply of coffee.
b.increase the price of coffee.
c.decrease the quantity of coffee consumed.
d.increase the price of tea.
17) Occupational licensing has much the same effect as:
A.inclusive unionism.
B.exclusive unionism.
C.bilateral monopoly.
D.monopsony.
18) A monopsonistic employer in an unorganized (nonunion) labor market will:
A.pay a wage rate less than labor’s MRP.
B.pay the same wage rate but hire fewer workers than if the market was purely
competitive.
C.hire the number of workers indicated by the intersection of the MRC and the labor
supply curves.
D.pay a wage rate in excess of labor’s MRP.
19)
Refer to the above data. If the market wage rate is $8 and the firm hires its
profit-maximizing number of workers, the firm’s total wage bill (payment) will be:
A.$16.
B.$24.
C.$32.
D.$48.
20) economic models:
a.are of limited use because they cannot be tested empirically.
b.are limited to variables that are directly related to one another.
c.emphasize basic economic relationships by purposefully simplifying the complexities
of the real world.
d.are unrealistic and therefore of no practical consequence.