1) An industry with which of the following four-firm concentration ratios would tend to
have the greatest amount of R&D expenditures as a percentage of sales?
A.0
B.10
C.50
D.100
2) Which of the following is not characteristic of long-run equilibrium under
monopolistic competition?
A.Price equals minimum average total cost.
B.Marginal cost equals marginal revenue.
C.Price is equal to average total cost.
D.Price exceeds marginal cost.
3) Which question is an illustration of a macroeconomic question?
A.Is a corporation unresponsive to the demands of its customers?
B.Is a consumer boycott an effective means of reducing a product’s price?
C.How will the government’s budget deficit be affected by public infrastructure
projects?
D.Are oil companies ripping off consumers by charging exorbitantly high prices for
gasoline?
4) The average household income in the United States in 2011 was about:
A.$35,000
B.$50,000
C.$70,000
D.$100,000
5) The prominence of employer-provided health insurance in the U.S. has had the
following major consequences, except:
A.Overuse of health-care services
B.Rapidly rising prices of health care
C.Reform efforts have mostly focused on regulation of health insurance
D.Heightened awareness of employees about the true costs of their health care
6) Al regularly pays the full amount of taxes due, even though he could easily hide
some of his income and reduce his tax burden, with no risk of getting caught. According
to behavioral economics:
A.Al is not economically rational in his behavior.
B.fairness and other moral considerations cause Al to act contrary to his pure
self-interest.
C.Al is more ethical than the majority of the population.
D.heuristics are causing Al to act honorably, not a conscious or deliberative thought
process.
7) If the elasticity of demand for labor in the United States is unitary, immigration into
the United States can be expected to:
A.increase the average U.S. wage rate.
B.decrease the total amount of wage earnings that U.S. workers receive.
C.increase the total amount of wage earnings that U.S. workers receive.
D.leave the total amount of wage earnings that U.S. workers receive unchanged.
8) Which of the following statements is correct?
A.If the profit-maximizing rule is fulfilled, it necessarily follows that the
cost-minimization rule is being fulfilled.
B.The profit-maximizing and the cost-minimizing rules are such that the fulfilling of
one has no bearing on the fulfilling of the other.
C.If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not
be fulfilled.
D.If the cost-minimization rule is fulfilled, it necessarily follows that the
profit-maximizing rule is being fulfilled.
9)
Curve (4) in the diagram is a purely competitive firm’s:
A.total cost curve.
B.total revenue curve.
C.marginal revenue curve.
D.total profit curve.
10) Assume that all workers are equally productive, but the wage rate for men is $12
compared to $9 for women. An employer who employs only male workers must have a
discrimination coefficient of:
A.more than $3.
B.at most 0.3.
C.less than $3.
D.1.33 or less.
11) Which legislative act provided for the industrial regulation of the railroad industry
by the Federal government?
A.Interstate Commerce Act
B.Railway Labor Act
C.Sherman Act
D.Clayton Act
12) The slopes of the production possibilities curves for two nations reflect the:
A.Relative prices of the resources in the two nations
B.Amounts of imports and exports of the two nations
C.Average income levels in the two nations
D.Opportunity costs of production in the two nations
13)
Refer to the graphs. Stanville has a comparative advantage in producing:
A.product A.
B.product B.
C.both product A and B.
D.neither product A nor B.
14) The major problem with paired-choice majority voting is that the outcome:
A.Is constant
B.Is subject to bribery and abuse
C.May depend on the order of the voting
D.Results in clear preferences among the choices
15)
Refer to the above diagram for the milk market. If the price were $2 per gallon, then
there would be a:
A.Shortage of 20 million gallons
B.Shortage of 10 million gallons
C.Surplus of 10 million gallons
D.Surplus of 30 million gallons
16) The following table contains hypothetical data for the 2012 U.S. balance of
payments. Answer the question on the basis of this information. All figures are in
billions of dollars.
Refer to the given data. The U.S. balance on goods and services is a:
A.$10 billion deficit.
B.$20 billion deficit.
C.$30 billion surplus.
D.$30 billion deficit.
17) A public good:
A.Generally results in substantial negative externalities
B.Can never be provided by a nongovernmental organization
C.Costs essentially nothing to produce and is thus provided by the government at a zero
price
D.Can’t be provided to one person without making it available to others as well
18)
Refer to the payoff matrix. Which of the following statements is true regarding the
outcome of this game?
A.Both firms will price high, and this outcome is a prisoner’s dilemma.
B.Both firms will price low, and this outcome is a prisoner’s dilemma.
C.Both firms will price high, but this outcome is not a prisoner’s dilemma.
D.Both firms will price low, but this outcome is not a prisoner’s dilemma.
19) Which of the following does not necessarily apply to a pure monopoly?
A.The product the firm produces must have no close substitutes
B.The firm must be the sole producer of a product
C.The firm will charge the highest price possible
D.Entry must be blocked