1) In the absence of unexpected shocks, the economy will tend to experience:
A.positive, non-inflationary growth.
B.no changes in output or prices.
C.positive growth with mild amounts of deflation.
D.positive growth with mild amounts of inflation.
2)
Refer to the above diagram. Which of the following would be consistent with an
increase in racial prejudice against African-Americans and thus an increase in the
discrimination coefficients of employers, taken as a group?
A.a shift in the labor demand curve from D2 to D3.
B.a shift in the labor demand curve from D2 to D1.
C.an increase in African-American employment from Q2 to Q3.
D.an increase in the African-American wage rage from W1 to W2.
3)
refer to the figure above. suppose the graphs represent the demand for use of a local
golf course for which there is no significant competition (it has a local monopoly); p
denotes the price of a round of golf; q is the quantity of rounds ‘sold” each day. if the
left graph represents the demand during weekdays, and the right graph the weekend
demand, this profit-maximizing golf course should:
a.charge $9 for each round, regardless of the day of the week.
b.charge $7 for each round, regardless of the day of the week.
c.charge $7 for each round on weekdays, and $10 during the weekend.
4)
in the above diagrams for a hypothetical economy, figure 1 shows the:
a.personal distribution of income.
b.functional distribution of income.
c.microeconomic distribution of income.
d.international distribution of income.
5) Public choice theorists hold that politicians will:
A.favor programs entailing immediate and clear-cut costs and vaguely defined or
deferred benefits.
B.follow policies leading to an optimal allocation of resources between public and
private sectors.
C.favor programs entailing immediate and clear-cut benefits and vaguely defined or
deferred costs.
D.objectively weigh the costs and benefits of various government programs and vote
accordingly.
6) Movie producers A, B, and C secretly meet and agree to release their summer
blockbuster films in sequence, rather than at the same time. The U.S. Justice
Department learns of the agreement and files an antitrust suit. The Federal government
would most likely file charges under the:
A.Sherman Act, Section 1
B.Sherman Act, Section 2
C.Clayton Act
D.Federal Trade Commission Act
7) Suppose that Katie and Kelly each expect to receive $500 worth of marginal benefits
from a proposed new recreation center, whereas Kerry expects to receive only $100
worth. If the proposed tax levied on each for the center would be $400, a majority vote
will:
A.defeat this project and resources will be underallocated to it.
B.pass this project and resources will be efficiently allocated.
C.pass the this project and resources will be underallocated to it.
D.pass this project and resources will be overallocated to it.
8)
Refer to the above table, in which the values for columns (2) through (5) are in acres.
Positive land rent will occur if the relevant columns are:
A.(1), (2), and (3) only.
B.(1), (2), and (3) and (1), (2), and (5).
C.(1), (2), and (4) and (1), (2), and (5).
D.(1), (2), and (3) and (1), (2), and (4).
9) in presenting the idea of a demand curve, economists presume that the most
important variable in determining the quantity demanded is:
a.the price of the product itself.
b.consumer income.
c.the prices of related goods.
d.consumer tastes.
10) (last word) declines in stock prices measured by the dow jones average:
a.are a major cause of recessions.
b.usually reduce saving and increase consumption spending.
c.usually increase investment and reduce net exports.
d.sometimes precede recessions; sometimes do not.