1) A craft union attempts to increase wage rates by:
A.equating the MRP and the MRC curves.
B.shifting the labor supply curve to the left.
C.shifting the labor supply curve to the right.
D.shifting the MRP curve to the right.
2) Kara and Kyle are competing Sockeye Salmon fishers. Both have been allocated
ITQs that limit their catch to 2,000 tons of Sockeye Salmon each. Kara’s cost per ton is
$8; Kyle’s cost per ton is $12.
Refer to the information above. If the market price of Sockeye Salmon is $15 per ton,
and Kara and Kyle both catch their quota, their combined profit will be:
A.$6,000.
B.$14,000.
C.$20,000.
D.$30,000.
3) a nondiscriminating pure monopolist’s demand curve:
a.is perfectly inelastic.
b.coincides with its marginal revenue curve.
c.lies above its marginal revenue curve.
d.lies below its marginal revenue curve.
4) In the extended analysis of aggregate supply, the short-run aggregate supply curve is:
A.vertical and the long-run aggregate supply curve is horizontal.
B.horizontal and the long-run aggregate supply curve is vertical.
C.upward sloping and the long-run aggregate supply curve is vertical.
D.horizontal and the long-run aggregate supply curve is upward sloping.
5) assume an economy that is producing only one product and that year 3 is the base
year. output and price data for a five-year period are as follows. answer the next
question(s) on the basis of these data.
refer to the above data. in determining real gdp, the nominal gdp for:
a.each year must be multiplied by the relevant price index.
b.years 1 and 2 must be inflated.
c.years 4 and 5 must be inflated.
d. years 1 and 2 must be deflated.
6) If each taxpayer paid the same lump-sum amount regardless of income level, the tax
system would be:
A.disproportionate.
B.progressive.
C.proportional.
D.regressive.
7) (last word) the 2006 massachusetts law requiring all residents to have health care
insurance is expected to:
a.bankrupt the state government.
b.help restrain rapidly rising health care prices.
c.reduce health insurance costs to those who are already insured and paying a hidden
surcharge for uninsured patients.
d.increase wages across the state.
8) which of the following statements is most accurate about the prospects for poorer
(“follower”) countries “catching up” with richer (“leader”) countries?
a.catching up is unlikely to occur because their growth rates are the same on average.
b.catching up is unlikely to occur because richer countries tend to grow at a faster rate.
c.catching up is possible, but only if growth rates in leader countries fall to zero or
become negative.
d.catching up is possible as “follower countries” tend to grow faster than “leader
countries.”
9) the practice of price discrimination is associated with pure monopoly because:
a.it can be practiced whenever a firm’s demand curve is downsloping.
b.monopolists have considerable ability to control output and price.
c.monopolists usually realize economies of scale.
d.most monopolists sell differentiated products.
10) the following marginal utility data for products x and y. assume that the prices of x
and y are $4 and $2 respectively and that the consumer’s income is $18.
refer to the above data. what quantities of x and y should be purchased to maximize
utility?
a.2 of x and 1 of y
b.4 of x and 5 of y
c.2 of x and 5 of y
d.2 of x and 6 of y
11) The Fed directly sets:
A.the prime interest rate but not the Federal funds rate.
B.both the Federal funds rate and the prime interest rate.
C.neither the Federal funds rate nor the prime interest rate.
D.the discount rate and the prime interest rate.
12) The share of total financial assets held by insurance companies, pension funds,
mutual funds companies, and security-related firms has:
A.declined significantly since 1980.
B.increased significantly since 1980.
C.has remained quite constant since the Second World War.
D.decreased in the United States but increased abroad.
13) Assume that the firm is hiring labor in a purely competitive market.
Refer to the above data. If the wage rate is $20, how many workers will the firm choose
to employ?
A.5
B.4
C.3
D.2
14) An increasing share of the private capital flows to DVCs since 1990 have been in
the form of:
A.interest-free government loans.
B.educational and training assistance.
C.direct foreign investment.
D.bank loans.