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160 MCQ’s Tutorial

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http://www.studentoffortune.com/question/2215353/
<-----> was coined by:



A. Michael Harrington.


B. John Kenneth Galbraith.


C. Karl Marx.


D. Adam Smith.
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Question 8 of 20 5.0 Points
In order to raise our rate of economic growth we would need to:



A. increase the level of labor or capital.


B. reduce the level of labor.


C. spend more on military goods.


D. spend more on consumer goods.
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Question 9 of 20 5.0 Points
Human wants are:



A. relatively limited.


B. relatively unlimited.


C. easily satisfied.


D. about equal to our productive capacity.
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Question 10 of 20 5.0 Points
Whom of the following is NOT an entrepreneur?



A. Henry Ford (Ford Motor Company)


B. Tim Berners-Lee (creator of the World Wide Web)


C. John David Rockefeller (Standard Oil)


D. Bill Gates (Microsoft)
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Question 11 of 20 5.0 Points
Which of the following is an example of capital?



A. Money in a Swiss bank account


B. A bulldozer


C. A CD by Metallica


D. A Dracula costume for Halloween
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Question 12 of 20 5.0 Points
Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemon cards. The opportunity cost to Tommy of an extra packet of Pokemon cards is:



A. one video game rental.


B. two video game rentals.


C. the cost of the Pokemon cards.


D. He does not incur an opportunity cost.
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  • 1. PLEASE CLICK HERE TO DOWNLOAD THE ANSWERS!! 160 MCQ’s TutorialPart 1 of 1 - 5.0 PointsQuestion 1 of 20Which statement is true? A. A depression followed both World War I and World War II. B. A depression followed neither World War I nor World War II. C. A depression followed World War I, but not World War II. D. A depression followed World War II but not World War I.Reset Selection 5.0 PointsQuestion 2 of 20There was full employment in: A. 1929 and 1942. B. neither 1929 nor 1942. C. 1929 only. D. 1942 only.Reset Selection 5.0 PointsQuestion 3 of 20Between 1939 and 1944 our national output: A. rose by 50%. B. nearly doubled. C. rose by 150%. D. nearly tripled.Reset Selection 5.0 PointsQuestion 4 of 20The early 1930s was a period of: A. inflation and deflation. B. neither inflation nor deflation. C. inflation. D. deflation.Reset Selection 5.0 PointsQuestion 5 of 20The name of Andrew Carnegie is most closely associated with the __________ industry.
  • 2. A. steel B. rubber C. meatpacking D. chemicalReset Selection 5.0 PointsQuestion 6 of 20The transcontinental railroads were completed in the 25 years: A. before the Civil War. B. after the Civil War. C. after 1890. D. after the 20th century began.Reset Selection 5.0 PointsQuestion 7 of 20The term "the affluent society" was coined by: A. Michael Harrington. B. John Kenneth Galbraith. C. Karl Marx. D. Adam Smith.Reset Selection 5.0 Points Question 8 of 20In order to raise our rate of economic growth we would need to: A. increase the level of labor or capital. B. reduce the level of labor. C. spend more on military goods. D. spend more on consumer goods.Reset Selection 5.0 PointsQuestion 9 of 20Human wants are: A. relatively limited. B. relatively unlimited. C. easily satisfied. D. about equal to our productive capacity.Reset Selection 5.0 PointsQuestion 10 of 20Whom of the following is NOT an entrepreneur? A. Henry Ford (Ford Motor Company)
  • 3. B. Tim Berners-Lee (creator of the World Wide Web) C. John David Rockefeller (Standard Oil) D. Bill Gates (Microsoft)Reset Selection 5.0 PointsQuestion 11 of 20Which of the following is an example of capital? A. Money in a Swiss bank account B. A bulldozer C. A CD by Metallica D. A Dracula costume for HalloweenReset Selection 5.0 PointsQuestion 12 of 20Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of Pokemoncards. The opportunity cost to Tommy of an extra packet of Pokemon cards is: A. one video game rental. B. two video game rentals. C. the cost of the Pokemon cards. D. He does not incur an opportunity cost.Reset Selection 5.0 PointsQuestion 13 of 20The invisible hand is: A. perfect competition. B. the profit motive. C. government direction. D. the mixed economy.Reset Selection 5.0 PointsQuestion 14 of 20Hitlers Germany was an example of a __________ economic system. A. capitalist B. fascist C. communist D. socialistReset Selection 5.0 PointsQuestion 15 of 20Karl Marx said that: A. whoever controls a societys capital controls that society. B. in the long run capitalism would survive.
  • 4. C. the U.S.S.R.s communist system was "state capitalism." D. capitalists and workers generally have the same economic interests.Reset Selection 5.0 PointsQuestion 16 of 20Private ownership of most of the means of production is common to: A. capitalism and communism. B. capitalism and fascism. C. capitalism and socialism. D. fascism and communism.Reset Selection 5.0 PointsQuestion 17 of 20Sweden and Norway would best be described as __________ countries. A. capitalist B. fascist C. communist D. socialistReset Selection 5.0 PointsQuestion 18 of 20Characteristics of the "invisible hand" concept include all of the following, EXCEPT: A. simple markets. B. individuals and firms pursue their own self-interest without any central direction or regulation. C. a complete lack of government involvement in the economy. D. All of the choices are characteristics of the "invisible-hand."Reset Selection 5.0 Points Question 19 of 20"The theory of the Communists may be summed up in a single sentence: Abolition of privateproperty." is from: A. The Communist Manifesto. B. The Capitalist Manifesto. C. The Socialist Manifesto. D. The Fascist Manifesto.Reset Selection 5.0 PointsQuestion 20 of 20The nation closest to a centrally planned, socialist economy is: A. China. B. Japan.
  • 5. C. France. D. Germany.Reset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20When the market price is higher than the equilibrium price, there is: A. a surplus. B. a shortage. C. both a shortage and a surplus. D. neither a shortage nor a surplus.Reset Selection 5.0 PointsQuestion 2 of 20A decrease in demand means that quantity demanded falls: A. at least one price. B. at a few prices. C. at most prices. D. at all prices.Reset Selection 5.0 Points Question 3 of 20If the market price is below equilibrium price, quantity demanded: A. is less than quantity supplied. B. is equal to quantity supplied. C. is greater than quantity supplied. D. remains the same.Reset Selection 5.0 PointsQuestion 4 of 20At equilibrium, quantity demanded __________ equals quantity supplied. A. always B. usually C. sometimes D. neverReset Selection 5.0 PointsQuestion 5 of 20When the market price is above equilibrium price, the market price will be driven:
  • 6. A. up by buyers. B. up by sellers. C. down by buyers D. down by sellers.Reset Selection 5.0 PointsQuestion 6 of 20Changes in demand are caused by each of the following EXCEPT changes in: A. income. B. the prices of related goods and services. C. tastes and preferences. D. supply.Reset Selection 5.0 PointsQuestion 7 of 20An increase in the price of a complement will result in a(n) __________ for the product. A. decrease in the quantity demanded B. increase in the quantity demanded C. decrease in the demand D. increase in the demandReset Selection 5.0 Points Question 8 of 20If coffee is a substitute for tea, and the price of coffee rises, what will happen? A. Demand for tea will decrease. B. Demand for tea will increase. C. The quantity demanded of coffee will rise. D. The quantity demanded of tea will decrease.Reset Selection 5.0 PointsQuestion 9 of 20The most important determinant of the degree of elasticity of demand is: A. whether or not the item is a big ticket item. B. whether or not the item is a luxury or not. C. how many uses the product has. D. the availability of substitutes.Reset Selection 5.0 Points Question 10 of 20If a car dealership decides to offer a rebate to reduce the selling price of its cars and as a resultfinds an increase in its total revenues, then the demand for cars from this dealership is: A. price elastic.
  • 7. B. price inelastic. C. rebate inelastic. D. unit elastic.Reset Selection 5.0 PointsQuestion 11 of 20Total revenue will increase if price: A. rises and demand is elastic. B. rises and demand is unit elastic. C. falls and demand is inelastic. D. falls and demand is elastic.Reset Selection 5.0 PointsQuestion 12 of 20Cross elasticity of demand measures the response in: A. the quantity of one good demanded to a change in the price of another good. B. the income of consumers to the change in the price of goods. C. the price of a good to a change in the quantity of another good demanded. D. quantity of one good demanded when the quantity demanded of another good changes.Reset Selection 5.0 PointsQuestion 13 of 20A person would be maximizing her total utility when: A. she had a consumer surplus. B. her marginal utility was zero. C. her marginal utility was equal to her total utility. D. she had no consumer surplus.Reset Selection 5.0 Points Question 14 of 20Melissa says she will have to be paid in order to even try Jasons cooking, so her marginal utilityfor Jasons cooking is: A. constant. B. increasing. C. positive. D. negative.Reset Selection 5.0 Points Question 15 of 20According to the general utility formula, the marginal utility of a good divided by the price ofthat good is:
  • 8. A. less that negative one. B. equal to one. C. greater than one. D. equal to zero.Reset Selection 5.0 Points Question 16 of 20If your marginal utility from your last session with your personal trainer is equal to the priceshe charged you, then: A. you have had exactly the right number of sessions. B. you have had too many sessions. C. you have not had enough sessions. D. there is no way to determine whether you have had enough sessions.Reset Selection 5.0 PointsQuestion 17 of 20A decrease in the demand for a service means that the: A. demand curve shifts to the right. B. demand curve shifts to the left. C. supply curve shifts to the right. D. supply curve shifts to the left.Reset Selection 5.0 PointsQuestion 18 of 20The market demand curve is derived: A. so that it slopes downward and to the left as quantity rises. B. by totaling the average demands for products in all markets. C. by horizontally summing potential buyers individual demand curves. D. by vertically summing the demand curves of individuals in the market.Reset Selection 5.0 PointsQuestion 19 of 20An increase in supply means that quantity supplied rises: A. at least one price. B. at a few prices. C. at most prices. D. at all prices.Reset Selection 5.0 PointsQuestion 20 of 20When the market price is lower than the equilibrium price, there is: A. a surplus.
  • 9. B. a shortage. C. both a shortage and a surplus. D. neither a shortage nor a surplus.Reset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20As output rises: A. AFC rises. B. AFC falls. C. AFC remains the same. D. There is no way of determining what happens to AFC.Reset Selection 5.0 PointsQuestion 2 of 20When average total cost is declining, then: A. marginal cost must be less than average total cost. B. marginal cost must be greater than average total cost. C. average total cost must be greater than average fixed cost. D. average variable cost must be declining.Reset Selection 5.0 PointsQuestion 3 of 20The law of diminishing returns: A. is completely invalid. B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. C. states that if any two resources are combined, production will fall. D. states that profit margins decline as output rises.Reset Selection 5.0 Points Question 4 of 20If fixed cost is $8,000, variable cost is $5,000 at an output of 2 and $9,000 at an output of 3,how much is marginal cost at an output of 3? A. $3,000 B. $4,000 C. $5,000 D. $8,000Reset Selection
  • 10. 5.0 PointsQuestion 5 of 20Which statement is true? A. AFC declines with output. B. ATC declines with output. C. AFC - AVC = ATC. D. Output divided by fixed cost = AFC.Reset Selection 5.0 PointsQuestion 6 of 20The average fixed cost curve: A. is a vertical line. B. is a horizontal line. C. slopes downward to the right as output rises. D. is U-shaped (it declines as output rises, reaches a minimum, and then rises).Reset Selection 5.0 PointsQuestion 7 of 20As a firms output expands, the: A. ATC will reach a minimum before the AVC. B. AVC will reach a minimum before the ATC C. ATC and AVC will reach minimums at the same output. D. ATC and AVC will reach maximums at the same output.Reset Selection 5.0 PointsQuestion 8 of 20Marginal cost may be defined as the __________ cost that results from producing one moreunit of output. A. change in average total B. change in average variable C. change in total D. rate of change in total fixedReset Selection 5.0 PointsQuestion 9 of 20Which is most clearly a fixed cost? A. Insurance premiums B. Wages of production workers C. Cost of raw materials D. Shipping costsReset Selection
  • 11. 5.0 PointsQuestion 10 of 20Fixed cost is sometimes referred to as __________ cost. A. sunk B. variable C. total D. economicReset Selection 5.0 PointsQuestion 11 of 20Adam Smith noted each of the following economies of scale EXCEPT: A. specialization. B. diminishing returns. C. saving of time that would otherwise be spent going from one task to another. D. employment of expensive equipment.Reset Selection 5.0 PointsQuestion 12 of 20Parkinsons Law is an example of: A. economies of scale. B. diseconomies of scale. C. Adam Smiths pin factory. D. the firms search for its most profitable output.Reset Selection 5.0 PointsQuestion 13 of 20Which of the following is the most likely to be a variable cost? A. Raw material costs B. Leasing payments of tour buses for rock and roll bands C. Interest on bonded indebtedness D. Real estate taxesReset Selection 5.0 PointsQuestion 14 of 20As long as there are __________ costs, we are in the short run. A. variable B. fixed C. marginal D. averageReset Selection 5.0 PointsQuestion 15 of 20
  • 12. If price is between the break-even point and the shutdown point, in the long run the firm will: A. operate. B. make a profit. C. stay in business. D. go out of business.Reset Selection 5.0 PointsQuestion 16 of 20Adam Smith used a pin factory to demonstrate: A. the advantages of economies of scale. B. diseconomies of scale. C. the long-run average cost curve. D. the advantage of being established.Reset Selection 5.0 PointsQuestion 17 of 20When output is 0, total cost equals __________ cost. A. total variable B. total fixed C. marginal D. average variableReset Selection 5.0 PointsQuestion 18 of 20At an output of 1, marginal cost is: A. $0. B. $200. C. $300. D. $400.Reset Selection 5.0 PointsQuestion 19 of 20The law of diminishing marginal returns implies: A. the more hours you spend studying economics the less you will know. B. your understanding of economics will be increased by decreasing your marginal study time. C. after a certain point, the more hours you spend studying economics per day, the less you will learn with each added hour. D. the more hours you spend studying economics per day, the more you will learn with each added hour.Reset Selection
  • 13. 5.0 PointsQuestion 20 of 20Which of the following cost curves will NOT shift downward if the price of a variable inputdecreases? A. Total cost B. Average cost C. Marginal cost D. Average fixed costReset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20A firm produces at that output at which marginal cost = marginal revenue: A. all of the time. B. most of the time. C. some of the time. D. on rare occasions.Reset Selection 5.0 PointsQuestion 2 of 20Which statement is true? A. The marginal cost curve is used to determine if a firm is operating at peak efficiency. B. A firm will always try to maximize its total revenue. C. A firms long-run supply curve is identical to its entire marginal cost curve. D. A firm is operating most efficiently when it is at its break-even point.Reset Selection 5.0 PointsQuestion 3 of 20Which statement is true? A. Price is calculated by dividing output by total revenue. B. The lowest point on the short-run supply curve is at the break-even point. C. When price exceeds marginal cost, a profit-maximizing firm will decrease production. D. The marginal cost curve intersects the average total cost curve at the break-even pointReset Selection 5.0 PointsQuestion 4 of 20To find the output at which the firm maximizes its profits you must know the firms: A. ATC. B. AVC. C. AFC.
  • 14. D. MC.Reset Selection 5.0 PointsQuestion 5 of 20The monopolist and the perfect competitor differ in that: A. they face different demand curves. B. the monopolist does not always produce at an output in which MC = MR. C. the monopolist is always a large firm. D. the monopolist is more efficient.Reset Selection 5.0 PointsQuestion 6 of 20Which statement is true? A. The monopolist operates at the minimum point of her average total cost curve. B. Once a monopoly is set up, it is impossible to dislodge it. C. Monopolies are always large firms. D. Price is always read off the demand curve.Reset Selection 5.0 PointsQuestion 7 of 20Which statement is true? A. All monopolists products have close substitutes. B. Most firms in the United States are monopolies. C. There are no monopolies in the United States. D. A monopoly is a firm that produces all the output in an industry.Reset Selection 5.0 PointsQuestion 8 of 20The monopolist is a(n): A. imperfect competitor and has a horizontal demand curve. B. imperfect competitor and has a downward-sloping demand curve. C. perfect competitor and has a horizontal demand curve. D. perfect competitor and has a downward-sloping demand curve.Reset Selection 5.0 PointsQuestion 9 of 20Price is always read off the __________ curve. A. MC B. MR C. ATC D. demand
  • 15. Reset Selection 5.0 PointsQuestion 10 of 20The most efficient output is found: A. where MC and MR cross. B. at the bottom of the ATC curve. C. when the demand and MR curves are equal. D. where the ATC and demand curves cross.Reset Selection 5.0 PointsQuestion 11 of 20The basis for monopolistic competition is: A. product differentiation. B. price. C. economies of scale. D. reaching a break-even point.Reset Selection 5.0 PointsQuestion 12 of 20__________ is (are) legal in the United States. A. Convert collusion B. Cut throat competition C. Cartels D. Price fixingReset Selection 5.0 Points Question 13 of 20A Herfindahl-Hirschman Index of 10,000 would mean there is (are) how many firm(s) in theindustry? A. 1 B. 10 C. 100 D. 1000Reset Selection 5.0 PointsQuestion 14 of 20The least competitive industry would be one that has: A. price leadership. B. covert collusion. C. overt collusion. D. a cartel.
  • 16. Reset Selection 5.0 PointsQuestion 15 of 20Which statement is true? A. The monopolistic competitor always makes a profit in the short run. B. The monopolistic competitor operates at peak efficiency. C. Product differentiation takes place in the minds of the buyers. D. Most consumers would prefer lower prices and less product differentiation.Reset Selection 5.0 PointsQuestion 16 of 20Monopolistic competition differs from perfect competition only with respect to: A. the number of firms in the industry. B. product differentiation. C. barriers to entry. D. economies of scale.Reset Selection 5.0 Points Question 17 of 20In the long run in monopolistic competition: A. most firms are making a profit. B. the absence of entry barriers ensures that there are no profits. C. economies of scale ensure that there are no profits. D. most firms are losing money.Reset Selection 5.0 PointsQuestion 18 of 20Which statement is true? A. Most firms in the United States are monopolistic competitors. B. Most firms in the United States are perfect competitors. C. Most consumers would prefer lower prices and less product differentiation. D. The monopolistic competitor always makes a profit in the short run.Reset Selection 5.0 PointsQuestion 19 of 20The closer the industry concentration ratio is to 100, the more likely it is that: A. there are a reasonably large number of medium-sized firms. B. this is an industry approaching perfect competition. C. there is a small number of large firms. D. price competition is being practiced.Reset Selection
  • 17. 5.0 Points Question 20 of 20 Which is the least competitive? A. Overt collusion B. Covert collusion C. Price leadership D. All are equally competitive Reset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20A conglomerate merger takes place when: A. a firm acquires a competitor. B. similar firms agree to compete. C. a firm integrates its production backward toward its source of supply or forward in its marketing chain. D. a firm buys another firm unrelated to the original firms business.Reset Selection 5.0 PointsQuestion 2 of 20You can find the MRP by multiplying marginal physical product by price for: A. both the perfect competitor and the imperfect competitor. B. neither the perfect competitor nor the imperfect competitor. C. only the perfect competitor. D. only the imperfect competitor.Reset Selection 5.0 PointsQuestion 3 of 20The additional output that one additional input of labor is responsible for is its __________product. A. marginal revenue B. marginal physical C. average revenue D. average physicalReset Selection 5.0 PointsQuestion 4 of 20The firms demand schedule for a resource is its __________ schedule.
  • 18. A. MPP B. MRP C. total revenue D. outputReset Selection 5.0 PointsQuestion 5 of 20As output rises: A. both marginal revenue product and marginal physical product rise. B. both marginal revenue product and marginal physical product fall. C. marginal revenue product rises and marginal physical product falls. D. marginal revenue product rises and marginal physical product rises.Reset Selection 5.0 Points Question 6 of 20If the price that a perfect competitor received for his or her final product doubled, the firmsMRP schedule would: A. rise. B. fall. C. double at each price. D. stay about the same.Reset Selection 5.0 PointsQuestion 7 of 20As output rises, the MRP of an imperfect competitor will __________ that of a perfectcompetitor. A. rise faster than B. fall faster than C. rise at the same rate as D. fall at the same rate asReset Selection 5.0 PointsQuestion 8 of 20The Standard Oil trust: A. was broken up in 1946. B. was controlled by several foreign nations. C. forced its rivals out of business. D. was put together by the U.S. government.Reset Selection 5.0 PointsQuestion 9 of 20The Clayton Act prohibited:
  • 19. A. interlocking directorates. B. all forms of monopoly. C. foreign control of U.S. corporations. D. false and deceptive advertising.Reset Selection 5.0 PointsQuestion 10 of 20The conventional merger is the __________ merger. A. horizontal B. vertical C. conglomerate D. diversifyingReset Selection 5.0 PointsQuestion 11 of 20Each of the following is an advantage of forming a conglomerate EXCEPT: A. tax advantages. B. forming a big company. C. diversification. D. accumulation of power within two or three closely related industries.Reset Selection 5.0 PointsQuestion 12 of 20A key passage of the __________ Act stated that "every contract, combination in form of trustor otherwise, in restraint of commerce among the several states, or with foreign nations, ishereby declared illegal." A. Clayton B. FTC C. DuPont D. ShermanReset Selection 5.0 PointsQuestion 13 of 20The Microsoft case ended with a(n): A. clear-cut win for the federal government. B. compromise settlement between Microsoft and the federal government. C. guilty plea by Microsoft, but no breakup of the company. D. abandonment of the case by the federal government.Reset Selection 5.0 Points Question 14 of 20In the 1960s, about 80% of the mergers were of the __________ variety.
  • 20. A. horizontal B. vertical C. conglomerate D. conventionalReset Selection 5.0 PointsQuestion 15 of 20Each of the following industries was deregulated during the last 30 years EXCEPT: A. the airlines. B. trucking. C. banking. D. radio and TV.Reset Selection 5.0 PointsQuestion 16 of 20A merger of a firm and its supplier is called a __________ merger. A. vertical B. horizontal C. conglomerate D. directReset Selection 5.0 PointsQuestion 17 of 20A horizontal merger takes place when: A. a firm acquires a competitor. B. similar firms agree to compete. C. firms in different industries merge. D. a firm diversifies by merging with a foreign firm.Reset Selection 5.0 PointsQuestion 18 of 20The Sherman Act of 1890: A. exempted labor unions from antitrust prosecution. B. included stringent enforcement provisions. C. outlawed unfair business practices to exclude rivals from selling in markets. D. outlawed all monopolies.Reset Selection 5.0 PointsQuestion 19 of 20A conglomerate merger involves combining firms: A. involved in the same industry.
  • 21. B. that are based in different countries. C. from unrelated industries. D. that control various stages of the production of a particular good from raw materials to finished manufacture.Reset Selection 5.0 PointsQuestion 20 of 20Which statement is true? A. Microsoft is subject to American antitrust laws, but not those of Europe, Asia, or elsewhere. B. Microsoft has never been involved in an antitrust suit. C. The European Commission fined Microsoft over $600 billion for its anticompetitive behavior. D. Microsoft has always gone out of its way to be helpful to its competitors.Reset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20The predecessor to the AFL was the: A. Teamsters Union. B. Knights of Labor. C. CIO. D. The International Workers of the World.Reset Selection 5.0 PointsQuestion 2 of 20The __________ Act allows states to enact "right-to-work" laws. A. National Labor Relations B. Taft-Hartley C. Landrum-Griffin D. Sherman AntitrustReset Selection 5.0 PointsQuestion 3 of 20An industrial union would be organized among a group such as: A. air traffic controllers. B. plumbers. C. airline pilots. D. steel workers.
  • 22. Reset Selection 5.0 PointsQuestion 4 of 20When a firm exercises monopsony power: A. the firm increases its profits at the expense of its workers. B. workers gain but the firm loses. C. workers, consumers, and owners of the firm are made better off. D. both the firm and the workers gain.Reset Selection 5.0 PointsQuestion 5 of 20Which statement is true with respect to the two basic ways that unions have of exerting power? A. Only inclusion leads to higher wages. B. Only exclusion leads to higher wages. C. Both inclusion and exclusion lead to higher wages. D. Neither inclusion nor exclusion leads to higher wages.Reset Selection 5.0 PointsQuestion 6 of 20A monopsony is: A. the seller of a product for which there are no close substitutes. B. the buyer of a product for which there are no close substitutes. C. both the seller and buyer of a product for which there are no close substitutes. D. neither the seller nor buyer of a product for which there are no close substitutes.Reset Selection 5.0 PointsQuestion 7 of 20Collective bargaining agreements in the United States generally: A. are negotiated for only a 1-year period. B. are very detailed and specify wages levels and fringe benefits for a period of 2-3 years. C. cover wages only. D. are negotiated for only a 6-month period.Reset Selection 5.0 Points Question 8 of 20In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, thecurrent year, when the Consumer Price Index stood at 135. What statement can you makeabout what happened to your real wages over this period? A. They rose. B. They fell. C. They remained the same.
  • 23. D. There is not enough information to determine whether they rose, fell, or remained the same.Reset Selection 5.0 PointsQuestion 9 of 20The amount a person earns over and above the amount she/he would be willing to work for iscalled: A. marginal resource cost. B. economic rent. C. marginal revenue product. D. profit on human capital.Reset Selection 5.0 Points Question 10 of 20Suppose your economics professor earns an equal annual salary of $40,000. The professorloves teaching and would not quit her job if her pay were reduced to $15,000 per year. Yourprofessor is earning annual economic rent of: A. $40,000. B. $25,000. C. $55,000. D. $15,000.Reset Selection 5.0 PointsQuestion 11 of 20According to the theory of the backward-bending labor supply curve, as the wage rate rises: A. first the substitution effect sets in, and then the income effect. B. first the income effect sets in, and then the substitution effect. C. the substitution effect and the income effect set in at the same time. D. there is neither a substitution effect nor an income effect.Reset Selection 5.0 PointsQuestion 12 of 20Which statement is true? A. The highest paid professional athletes earn economic rent. B. Economic rent is paid on land, but not in the form of wages. C. Economic rent is earned mainly by the poor and the lower middle class. D. Economic rent is paid in proportion to the marginal revenue product of a resource.Reset Selection 5.0 PointsQuestion 13 of 20Conservative economists would like to help younger workers get work experience by: A. setting up a government jobs program.
  • 24. B. raising the minimum wage rate. C. lowering the minimum wage rate. D. passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.Reset Selection 5.0 PointsQuestion 14 of 20Lorenz curves tell us about the: A. absolute distribution of income. B. poverty line. C. inverse relationship between price and the quantity demanded. D. relative distribution of income.Reset Selection 5.0 PointsQuestion 15 of 20Which goes exclusively to the poor? A. Medicaid B. Medicare C. Social Security D. Unemployment insurance benefitsReset Selection 5.0 Points Question 16 of 20If the value of non-cash assistance to the poor were included in their income, the: A. official number of persons classified as poor would be higher. B. official number of persons classified as poor would be lower. C. poverty income threshold would decrease. D. poverty income threshold would increase.Reset Selection 5.0 PointsQuestion 17 of 20During the decade of the 1980s our Lorenz curve: A. moved inward, toward the line of perfect equality. B. moved outward, away from the line of perfect equality. C. stayed about the same distance from the line of perfect equality. D. crossed the line of perfect equality.Reset Selection 5.0 PointsQuestion 18 of 20According to official statistics in the United States, a person is classified as poor: A. if the persons money income is below the poverty income threshold. B. only if the persons money income is below the poverty income threshold AND the
  • 25. person is not working. C. only if the persons money income is below the poverty income threshold AND the person is homeless. D. if the persons money income and the value of non-cash transfers is below the poverty income threshold.Reset Selection 5.0 Points Question 19 of 20In which of the following groups of people in the U.S. would the incidence of poverty be thegreatest? A. Black families with a female head B. All families of seven or more members C. Farmers and farm laborers D. Families whose head is age 65 or overReset Selection 5.0 PointsQuestion 20 of 20Which of the following groups has the lowest median income in the United States? A. Married couples with both spouses working B. Female-headed families with no husband present C. Male-headed families with no wife present D. Married couple families with the wife not workingReset SelectionPart 1 of 1 - 5.0 Points Question 1 of 20In general, a plot of land goes to: A. whomever the government designates. B. the highest bidder. C. the person who can make the best use of it. D. the person who has been using the land over time.Reset Selection 5.0 PointsQuestion 2 of 20The supply of land is: A. perfectly elastic. B. relatively elastic. C. relatively inelastic. D. perfectly inelastic.Reset Selection
  • 26. 5.0 PointsQuestion 3 of 20Who wanted to tax away all rent from landlords? A. David Ricardo B. Henry George C. Joseph Schumpeter D. Frank KnightReset Selection 5.0 PointsQuestion 4 of 20Which is NOT determined by supply and demand? A. The wage rate B. The interest rate C. Rent D. ProfitsReset Selection 5.0 Points Question 5 of 20"Profits are a reward for risk-bearing" would be a view held by: A. Joseph Schumpeter. B. Frank Knight. C. Henry George. D. Karl Marx.Reset Selection 5.0 PointsQuestion 6 of 20__________ sees the entrepreneur as an exploiter of labor. A. Joseph Schumpeter B. Frank Knight C. Henry George D. Karl MarxReset Selection 5.0 PointsQuestion 7 of 20A change in rent will be brought about by a change in: A. the supply of land. B. the demand for land. C. both the supply of and the demand for land. D. neither the supply of nor the demand for land.Reset Selection 5.0 PointsQuestion 8 of 20
  • 27. Usury laws lead to: A. a surplus of loanable funds. B. a shortage of loanable funds. C. a floor under interest rates. D. more lenders than borrowers.Reset Selection 5.0 PointsQuestion 9 of 20Rent on marginal land is: A. very high. B. above 0. C. 0. D. negative.Reset Selection 5.0 PointsQuestion 10 of 20Henry George advocated each of the following EXCEPT that: A. all land should be free. B. all rents should be taxed away. C. the government should raise all its tax revenue from a single tax on land. D. since land did not really belong to the landlords, rent was an unearned surplus.Reset Selection 5.0 PointsQuestion 11 of 20Which economist believes that all profits are linked with uncertainty and risk? A. Frank Knight B. Joseph Schumpeter C. Karl Marx D. John Maynard KeynesReset Selection 5.0 Points Question 12 of 20If there were no usury law the interest rate would be: A. 6%. B. 12%. C. 18%. D. 24%.Reset Selection 5.0 PointsQuestion 13 of 20Usury is considered the charging of:
  • 28. A. higher interest rates than people are willing to pay. B. lower interest rates than people are willing to pay. C. unconscionably high interest rates. D. extremely low rates of interest.Reset Selection 5.0 PointsQuestion 14 of 20Who said this: "The most hated sort, with the greatest reason, is usury, which makes a gain outof money itself, and not from the natural objects of it. For money was intended to be used inexchange, but not to increase at interest…of all modes of getting wealth this is the mostunnatural." A. Aristotle B. Joseph Schumpeter C. Benjamin Franklin D. Frank KnightReset Selection 5.0 PointsQuestion 15 of 20Which statement is true? A. Joseph Schumpeter said, "risk bearing is no part of the entrepreneurial function." B. Benjamin Franklin said, "It is better to borrow than to lend." C. Aristotle said, "the fair rate of interest is exactly what the market will bear." D. David Ricardo said, "the landlords return, rent, should be taxed away by the government."Reset Selection 5.0 PointsQuestion 16 of 20Which is the most accurate statement? A. Fringe and sub-prime lending should be outlawed. B. Poor people cannot get loans in the United States. C. Payday lenders like the Military Financial Network make low interest loans to our military personnel. D. When poor people get personal loans, they usually pay much higher interest rates than the average American.Reset Selection 5.0 PointsQuestion 17 of 20The theory of rent formulated by __________ is still used by most economists today. A. Karl Marx B. David Ricardo C. Frank Knight D. Joseph SchumpeterReset Selection
  • 29. 5.0 PointsQuestion 18 of 20When the demand for a plot of land falls, its: A. supply will fall. B. supply will rise. C. price will fall. D. price will rise.Reset Selection 5.0 PointsQuestion 19 of 20As the demand for land falls, rents: A. rise and more marginal land comes into use. B. fall and less marginal land is used. C. rise and less marginal land is used. D. fall and more marginal land comes into use.Reset Selection 5.0 PointsQuestion 20 of 20The concept that a dollar today is worth more than a dollar in the future is called: A. the net productivity of capital. B. economic rent. C. present value. D. the capitalization of assets.Reset SelectionPart 1 of 1 - 5.0 PointsQuestion 1 of 20The principle of comparative advantage: A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.Reset Selection 5.0 PointsQuestion 2 of 20At the core of the American trade problem is that: A. Americans spend too much on consumption. B. the dollar is too low C. the Japanese are excluding American products by means of high protective tariffs.
  • 30. D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.Reset Selection 5.0 PointsQuestion 3 of 20High protective tariffs: A. would be supported by most economists. B. will become more likely if we do not reduce our trade deficit. C. have very little support. D. would definitely solve all our trade problems.Reset Selection 5.0 PointsQuestion 4 of 20A hollow corporation: A. makes goods abroad and ships them to the United States. B. makes goods in the United States and ships them abroad. C. imports foreign goods and puts its own name on them. D. makes goods in the United States and has them sold abroad under another companys name.Reset Selection 5.0 PointsQuestion 5 of 20Which statement is true? A. The Japanese have not been selling below cost nor taking advantage of economies of scale. B. The Japanese have been selling below cost and have been taking advantage of economies of scale. C. The Japanese have been selling below cost but have not been taking advantage of economies of scale. D. The Japanese have been taking advantage of economies of scale but have not been selling below cost.Reset Selection 5.0 Points Question 6 of 20The Chinese economic expansion since the early 1980s and the Japanese economic expansionfrom the late 1940s through the 1980s were: A. virtually identical. B. both dependent on the American market. C. based in the economic principles of Karl Marx. D. based on closing their domestic markets to American goods and services.Reset Selection 5.0 PointsQuestion 7 of 20
  • 31. The least applicable argument for protection of U.S. industry against foreign competition is the__________ argument. A. national security B. infant industry C. low wage D. employmentReset Selection 5.0 PointsQuestion 8 of 20A balance-of-trade surplus exists: A. if the dollar value of exports exceeds the dollar value of imports. B. if the dollar value of imported capital exceeds the dollar value of exports. C. only if there is relative price inflation domestically. D. only if full employment exists domestically.Reset Selection 5.0 PointsQuestion 9 of 20Which statement is FALSE? A. Chinese factories have been pirating American goods and selling those products in China. B. Most often "made in China" is actually made elsewhere by multinational companies that use China as a final assembly station. C. Both China and Japan have closed markets to American made products. D. Our trading position with Japan is very much like a colony and a colonial power.Reset Selection 5.0 PointsQuestion 10 of 20Which statement is FALSE? A. If the U.S. can produce rice more efficiently than Japan can, the U.S. enjoys an absolute advantage. B. Economists dislike both tariffs and import quotas. C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently. D. No nation will engage in trade with another nation unless it will gain by that trade.Reset Selection 5.0 PointsQuestion 11 of 20Which statement is true? A. Nations should strive for self-sufficiency B. The U.S. balance of trade has always been positive C. Our biggest trade deficit was a little over $150 billion D. The U.S. balance of trade turned negative in the mid-1970s
  • 32. Reset Selection 5.0 PointsQuestion 12 of 20Which statement is true? A. The U.S. is both the worlds leading creditor nation and the leading debtor nation. B. The U.S. is neither the worlds leading creditor nation nor the worlds leading debtor nation. C. The U.S. is the worlds leading creditor nation and not the worlds leading debtor nation. D. The U.S. is the worlds leading debtor nation and not the worlds leading creditor nation.Reset Selection 5.0 PointsQuestion 13 of 20Each of the following is a requirement of a gold standard EXCEPT: A. a nation defines its currency in terms of gold. B. a nations money supply is made up of gold or gold certificates. C. a nation must maintain a fixed ratio between its gold stock and its money supply. D. there must be no barriers to the free flow of gold into and out of the country.Reset Selection 5.0 PointsQuestion 14 of 20The demise of the gold standard led to: A. more international trade. B. greater and greater devaluation. C. freely floating exchange rates. D. balance-of-payment surpluses.Reset Selection 5.0 PointsQuestion 15 of 20A U.S. importer of French wine would pay in: A. dollars. B. gold. C. euros. D. special drawing rights.Reset Selection 5.0 Points Question 16 of 20If we were on an international gold standard: A. inflation would be eliminated. B. recessions would be eliminated. C. trade deficits and surpluses would be eliminated.
  • 33. D. no nation would ever have to devaluate its currency.Reset Selection 5.0 PointsQuestion 17 of 20Appreciation of the Canadian dollar will: A. intensify an existing disequilibrium in Canadas balance of payments. B. make Canadas exports less expensive and its imports more expensive. C. make Canadas exports more expensive and its imports less expensive. D. make Canadas exports and imports both more expensive.Reset Selection 5.0 PointsQuestion 18 of 20Freely floating exchange rates are determined by the: A. forces of supply and demand for currencies. B. government with a trade surplus. C. government with a trade deficit. D. IMF.Reset Selection 5.0 PointsQuestion 19 of 20Depreciation of the dollar relative to the yen means that the: A. dollar price of the yen has fallen. B. yen prices of Japanese goods have increased to the Japanese. C. dollar prices of imported goods from Japan have increased. D. yen are less expensive to Americans.Reset Selection 5.0 PointsQuestion 20 of 20Under a system of freely flexible (floating) exchange rates an American trade deficit withMexico will tend to cause: A. the United States government to ration pesos to American importers. B. a flow of gold from the United States to Mexico. C. an increase in the peso price of dollars. D. an increase in the dollar price of pesos.Reset Selection PLEASE CLICK HERE TO DOWNLOAD THE ANSWERS!!