Economics MCQs 1-25...

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Question
1. Voluntary migration of skilled craftworkers from
low-paying to high-paying nations is most likely to be opposed by: (Points: 2)
business groups
in the high-paying nations.
craft workers
who stay in the low-paying nations.
industrial
unions in the high-paying nations.
craft unions in
the high-paying nations.
3. Labor market discrimination creates a: (Points: 2)
redistribution
of a larger domestic output.
larger domestic
output but no redistribution.
smaller
domestic output but no redistribution.
redistribution
of a smaller domestic output.
7. The fact that people prefer present consumption to future
consumption results in: (Points: 2)
a downsloping
demand for loanable funds curve.
an upsloping
supply of loanable funds curve.
a downsloping
supply of loanable funds curve.
an upsloping
demand for loanable funds curve.
9. In the real world, specialization is rarely complete
because: (Points: 2)
nations
normally experience increasing opportunity costs in producing more of the
product in which they are specializing.
production
possibilities curves are straight lines rather than curves bowed outward as
viewed from the origin.
one nation's
imports are necessarily another nation's exports.
international
law prohibits monopolies.
12. The idea of efficiency wages is that: (Points: 2)
the wages of
each type of labor must be proportionate to their marginal products.
the wages of
each type of labor must be equal to their marginal products.
firms might get
greater work effort by paying above-equilibrium wage rates.
workers are
more diligent when paid below-equilibrium wages.
14. Independent unions: (Points: 2)
have greater
combined membership than the AFL-CIO.
are not
affiliated with the AFL-CIO.
include the United Autoworkers and
Carpenters Union.
have about the
same combined membership as the AFL-CIO.
17. The Lorenz curve portrays: (Points:2[B1]).
the functional
distribution of income.
the ratio of
labor to capitalist income.
the personal
distribution of income.
income equality.
21. The lifetime distribution of income is more equal than
the annual distribution. This statement is: (Points: 2)
true, because
the rich have gotten richer and the poor have gotten poorer.
true, because
there is considerable income mobility over time.
false, because
people tend to stay in the same income quintile over extended periods of time.
false, because
the rich have gotten richer and the poor have gotten poorer.
22. Supporters of offshoring claim that its benefits
include: (Points: 2)
increased
demand for workers in complementary jobs.
keeping U.S.
firms profitable by lowering production costs.
reduced prices
for consumers.
all of these.
25. The demand for airline pilots results from the demand
for air travel. This fact is an example of: (Points: 2)
resource
substitutability.
rising marginal
resource cost.
elasticity of
resource demand.
the derived
demand for labor.
26. The availability of health insurance tends to: (Points
2)
decrease the
demand for health care and cause an underallocation of resources to the health
care industry.
increase the
quantity of health care demanded and cause an underallocation of resources to
the health care industry.
increase the
quantity of health care demanded and cause an overallocation of resources to
the health care industry.
decrease the
quantity of health care demanded and cause an overallocation of resources to
the health care industry.
28. Henry George advocated a single tax on: (Points: 2)
real capital.
entrepreneurial
profits.
land.
labor income.
29. The crowding of women and minorities into a restricted
number of occupations: (Points: 2)
has no impact
on the size of the domestic output or its distribution in the long run.
will increase
the size of the domestic output and make its distribution more equal.
will decrease
the size of the domestic output and make its distribution less equal.
will increase
the size of the domestic output, but make its distribution less equal.
30. Renewable resources: (Points: 2)
can never be
exhausted permanently.
can be
exhausted if harvest rates exceed replenishment rates for an extended period.
can be
exhausted if replenishment rates exceed harvest rates for an extended period.
will tend to be
over-harvested when they are private property.
33. In the United States, the rate of unionization is
(Points: 2)
higher in
mining than in government.
lower in
transportation than agriculture.
higher in
transportation than in retail trade.
lower in
government than in finance, insurance, and real estate.
34. Two of the implications of large U.S. trade deficits for
the United States are: (Points: 2)
decreased
current consumption and decreased indebtedness to foreigners.
reduced budget
deficits and decreased indebtedness to foreigners.
reduced current
consumption and higher saving.
increased
current consumption and increased indebtedness to foreigners.
35. Statistical discrimination: (Points: 2)
can persist in
the long run if differences in average characteristics among groups continue.
will tend to
diminish in the long run, because nondiscriminating firms will drive out
discriminating firms.
requires that
employers have discrimination coefficients greater than zero.
is also known
as occupational segregation.
36. Employers will hire more units of a resource if: (Points
2)
the price of
the resource increases.
the productivity
of the resource increases.
the price of
the good being produced declines.
the price of a
complementary resource rises.
40. If a U.S. importer can purchase 10,000 pounds for
$20,000, the rate of exchange is: (Points: 2)
$1 = 2 pounds
in the United States.
$2 = 1 pound in
the United States.
$1 = 2 pounds
in Great Britain.
$.5 = 1 pound
in Great Britain.
41. Given the availability of the Medicaid program, why are
so many poor people uninsured? (Points: 2)
Because only a
fixed percentage of the population can participate in Medicaid at any time.
Because many
poor people earn enough that they do not qualify for Medicaid.
Because
nonincome requirements screen many poor people from the program.
Because only
native-born Americans are eligible for the program.
43. The parity ratio: (Points: 2)
compares worker
productivity in the farm and nonfarm sectors.
is the ratio of
per capita farm income to per capita nonfarm income.
is the ratio of
prices received by farmers to prices paid by farmers.
is the ratio of
prices paid by farmers to prices received by farmers.
45. Defensive medicine refers to the idea that: (Points: 2)
it is more
cost-efficient to prevent illnesses than to cure them.
physicians may
require unnecessary testing as a means of protecting themselves against
malpractice suits.
doctors know
much more about diagnosing and treating illnesses than do health care
consumers.
physicians do
not advertise their services or fees.
48. A major implication of asymmetric information is that
(Points: 2)
health care
suppliers may reduce the supply of health care.
health care
suppliers may increase the demand for health care.
collusion
between health care suppliers and purchasers may accelerate the rise in costs.
resources may
be underallocated to the health care industry.
49. An example of a social insurance program is
whereas an example of public assistance program is _______.
(Points: 2)
Temporary
Assistance for Needy Households, unemployment compensation
Supplemental
Security Income, unemployment compensation
Social
Security, food stamps
Medicaid
Medicare
50. A lower equilibrium interest rate: (Points: 2)
increases
saving, reduces total spending, and increases total output.
decreases
saving, increases total spending, and decreases total output.
increases
investment, increases total spending, and increases total output.
decreases
investment, decreases total spending, and increases total output.
[B1]

 

Solution ID:393781 | This paper was updated on 26-Nov-2015

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