1) The creation of markets for pollution rights would provide:
A.neither an incentive not to pollute nor revenue for environmental improvement.
B.funds for environmental improvement, but would not provide an incentive to refrain
from polluting.
C.an incentive not to pollute, but would not provide funds for environmental
improvement.
D.both an incentive not to pollute and revenue which could be devoted to
environmental improvement.
2) The Federal Trade Commission:
A.is empowered to file antitrust suits.
B.prohibits interlocking directorates in interstate industries.
C.regulates airline fares.
D.regulates such transportation industries as railroads and trucking.
3)
Refer to the above diagram in which line AB is the United States production possibility
curve and AC is its trading possibilities curve. The international exchange ratio between
beef and cheese (terms of trade):
A.is the absolute value of slope of line AB
B.is the absolute value of slope of line AC
C.could lie anywhere between the absolute value of the slopes of lines AB and AC
D.cannot be determined on the basis of this information
4)
Refer to the above diagram. If the price level rises above P1 because of an increase in
aggregate demand, the:
A.economy will move up along curve B and output will temporarily increase.
B.long-run aggregate supply curve C will shift upward.
C.short-run aggregate supply curve B will automatically shift to the right.
D.economy’s output first will decline, then increase, and finally return to Q1.
5) Which one of the following is concerned with industrial regulation, as distinct from
social regulation?
A.Occupational Safety and Health Administration
B.Consumer Products Safety Commission
C.Federal Communications Commission
D.Environmental Protection Agency
6) Which of the following lists of exchange rates is arranged in proper historical order?
A.Bretton Woods system, gold standard, managed float
B.gold standard, managed float, Bretton Woods system
C.managed float, Bretton Woods system, gold standard
D.gold standard, Bretton Woods system, managed float
7)
refer to the above diagram. the movement from point a to point c can best be achieved
by:
a.increasing taxes and increasing government spending.
b.increasing taxes and decreasing government spending.
c.decreasing taxes and increasing government spending.
d.decreasing taxes and decreasing government spending.
8) In the United States, research and development spending as a percentage of GDP is:
A.1.5 to 2.0 percent, which is lower than that of most other industrial countries.
B.2.5 to 3.0 percent, which is higher than that of most other industrial countries.
C.4.5 to 5.0 percent, which is lower than that of most other industrial countries.
D.5.5 to 6.0 percent, which is higher than that of most other industrial countries.
9) A highly active role by government may be needed to promote economic growth in
low-income DVCs because of:
A.a lack of infrastructure.
B.lawlessness in the country.
C.a lack of local entrepreneurship.
D.all these reasons.
10) Evaluate the effect of the following on the AD curve, AS curve, equilibrium price
level and equilibrium output.
(a)The U.S. imposes tariffs on foreign goods to promote domestic industry. In
retaliation, foreign countries impose tariffs on U.S. goods.
(b)Congress decides to decrease personal income taxes, and to compensate for the lost
revenue they decrease business subsidies.
(c)A technology boom improves technology across industries, improving their
productivity.
(d)U.S. oil companies discover new large oil reserves in the U.S. The international price
of oil falls.
11) assume that society places a higher value on the last unit of x produced than the
value of the resources used to produce that unit. with no spillovers, this information
means that:
a.total cost is greater than total revenue.
b.price is greater than marginal cost.
c.marginal cost is greater than price.
d.resources are being overallocated to x.
12) (Last Word) In 2001, Microsoft was found guilty of:
A.using anticompetitive means to maintain and broaden its monopoly in
Intel-compatible operating systems for personal computers.
B.monopolizing the market for word processing software.
C.conspiring with Netscape and Sun to monopolize the market for Internet browsers.
D.deliberately pricing Windows 95 and 98 below marginal cost to monopolize the
market for operating systems for personal computers.
13) determine, other things equal, the effects of a given change in a determinant of
demand or supply for product x upon (1) the demand (d) for, or supply (s) of, x, (2) the
equilibrium price (p) of x and (3) the equilibrium quantity (q) of x.
refer to the above. if x is an inferior good, a decrease in income will:
a.decrease d, decrease p, and decrease q.
b.decrease d, decrease p, and increase q.
c.increase s, decrease p, and increase q.
d.increase d, increase p, and increase q.
14)
Refer to the above diagram. Which tax system has the least built-in stability?
A.T4
B.T3
C.T2
D.T1
15) the output of mp3 players should be:
a.reduced if marginal benefits exceed marginal costs.
b.reduced if marginal costs exceed marginal benefits.
c.increased if marginal costs exceed marginal benefits.
d.reduced to zero if their unit costs exceed the unit costs of alternative products.
16)
Refer to the above information. The value of the “near-monies” that are part of M2 is:
A.$480.
B.$630.
C.$350.
D.$530.
17) Property rights for fish from the open ocean:
A.do not exist.
B.are established by the United Nations.
C.exist once the fish are sold at market.
D.exist once the fish are caught.