1) If sellers could price-discriminate and charge two different prices to two different
groups of buyers in order to increase revenues, then the sellers would charge:
A.A higher price to the buyers whose demand is elastic
B.A higher price to the buyers whose demand is inelastic
C.A higher price to the buyers whose demand is unit-elastic
D.The same price actually, because price-discrimination will result in lower revenues
2) According to the concept of demographic transition:
A.population growth rates should slow as nations move into the final stage.
B.population growth rates should rise as nations move into the final stage.
C.population growth becomes exponential when nations are in the final stage.
D.population plummets in the transition phase.
3) To economists, the main differences between “the short run” and “the long run” are
that:
A.The law of diminishing returns applies in the long run, but not in the short run
B.In the short run all resources are fixed, while in the long run all resources are variable
C.Fixed inputs are more important to decision making in the long run than they are in
the short run
D.In the long run all resources are variable, while in the short run at least one resource
is fixed
4) Interest rates of various loans vary over a wide range due to differences in all of the
following, except:
A.Borrower characteristics
B.Maturity of the loan
C.Loan size
D.Lender characteristics
5) If the payment to an input is pure economic rent, then reducing that payment will:
A.Not influence the availability of the input
B.Increase the quantity supplied of the input
C.Decrease the quantity supplied of the input
D.Decrease the demand for the input
6) The demand for a resource will increase if the:
A.Price of the resource decreases
B.Supply of the resource decreases
C.Price of the product requiring this resource increases
D.Price of the product requiring this resource decreases
7) If there is a recession in the United Kingdom and a reduction in British imports, and
an economic boom in the United States and an increase in U.S. imports, then these
events are most likely to cause the British pound to:
A.Appreciate and the U.S. dollar to appreciate
B.Depreciate and the U.S. dollar to depreciate
C.Appreciate and the U.S. dollar to depreciate
D.Depreciate and the U.S. dollar to appreciate
8)
In the graph above, what happen to price and to total revenue points if the equilibrium
moves from point B to point A?
A.Price falls and total revenue increases
B.Price falls and total revenue also decreases
C.Price rises and total revenue also increases
D.Price rises and total revenue decreases
9) The table shows cost data for a firm that is selling in a purely competitive market.
Refer to the above cost table. The firm will produce its output only if the price is at least
equal to what minimum level?
A.$3
B.$4
C.$6
D.$9
10) The Herfindahl index for an industry is 2550. Which of the following sets of market
shares and industry with four firms would produce such an index?
A.20, 20, 30, and 30
B.25, 25, 25, and 25
C.20, 25, 25, and 30
D.10, 20, 30, and 40