Question 1

In the petroleum industry, proved reserves are

Accepted Answer

A)  evidence that uncertainty is not a problem in the industry. 
B)  inevitably growing smaller over time. 
C)  the same thing as the current supply of petroleum. 
D)  resources recoverable at current prices and technology. 
A)  evidence that uncertainty is not a problem in the industry. 
B)  inevitably growing smaller over time. 
C)  the same thing as the current supply of petroleum. 
D)  resources recoverable at current prices and technology.

Question 2

Pollution charges will be efficient if

Accepted Answer

A)  the charge is just equal to the cost borne by others from the pollution. 
B)  the charge is greater than the cost borne by others from the pollution. 
C)  the charge is less than the cost borne by others from the pollution. 
D)  none of the above. 
A)  the charge is just equal to the cost borne by others from the pollution. 
B)  the charge is greater than the cost borne by others from the pollution. 
C)  the charge is less than the cost borne by others from the pollution. 
D)  none of the above.

Question 3

Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the

Accepted Answer

A)  price of fuel-efficient compact cars to decrease. 
B)  supply of gasoline to decrease. 
C)  demand for large luxury cars to increase. 
D)  demand for fuel-efficient cars to increase. 
A)  price of fuel-efficient compact cars to decrease. 
B)  supply of gasoline to decrease. 
C)  demand for large luxury cars to increase. 
D)  demand for fuel-efficient cars to increase.

Question 4

When is the definition and enforcement of property rights especially difficult?

Accepted Answer

A)  When many polluters harm a large group of people with the same pollutant. 
B)  When a single polluter is harming a single person or entity. 
C)  When land is owned by a corporation. 
D)  When the benefits of prosecution are clear. 
A)  When many polluters harm a large group of people with the same pollutant. 
B)  When a single polluter is harming a single person or entity. 
C)  When land is owned by a corporation. 
D)  When the benefits of prosecution are clear.

Question 5

What percentage of personal income tax revenue was collected from the top 1 percent of earners in 2008?

Accepted Answer

A)  less than 10 percent 
B)  approximately 15 percent 
C)  approximately 20 percent 
D)  more than 35 percent 
A)  less than 10 percent 
B)  approximately 15 percent 
C)  approximately 20 percent 
D)  more than 35 percent

Question 6

The opportunity cost of slowing global warming by reducing carbon dioxide emissions is

Accepted Answer

A)  extremely high because policies that would significantly reduce emissions will adversely affect economic growth. 
B)  insignificant compared to the probable impact of warming from those emissions. 
C)  irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. 
D)  zero because fuel cost savings alone will offset all opportunity costs. 
A)  extremely high because policies that would significantly reduce emissions will adversely affect economic growth. 
B)  insignificant compared to the probable impact of warming from those emissions. 
C)  irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. 
D)  zero because fuel cost savings alone will offset all opportunity costs.

Question 7

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

Accepted Answer

A)  air quality in New York City 
B)  water pollution caused by a large number of firms located near the same river 
C)  noise pollution near a busy airport 
D)  all of the above 
A)  air quality in New York City 
B)  water pollution caused by a large number of firms located near the same river 
C)  noise pollution near a busy airport 
D)  all of the above

Question 8

How has the share of the personal income tax paid by the rich (the top 1 percent of earners) and the not-so-well-off (the bottom half of earners) changed during the last four decades?

Accepted Answer

A)  The rich now pay a larger share and the not-so-well-off pay a smaller share of the personal income tax. 
B)  The rich now pay a smaller share and the not-so-well-off pay a larger share of the personal income tax. 
C)  The share of the personal income tax paid by the rich increased between 1960 and 1980, but the share of the revenues collected from the rich has declined sharply since 1980. 
D)  The relative shares paid by the rich and the not-so-well-off have been virtually unchanged during the last four decades. 
A)  The rich now pay a larger share and the not-so-well-off pay a smaller share of the personal income tax. 
B)  The rich now pay a smaller share and the not-so-well-off pay a larger share of the personal income tax. 
C)  The share of the personal income tax paid by the rich increased between 1960 and 1980, but the share of the revenues collected from the rich has declined sharply since 1980. 
D)  The relative shares paid by the rich and the not-so-well-off have been virtually unchanged during the last four decades.

Question 9

Currently, about ____ of U.S. households own stock, either directly or through an equity mutual fund.

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  50 percent 
D)  80 percent 
A)  10 percent 
B)  20 percent 
C)  50 percent 
D)  80 percent

Question 10

Which of the following factors are likely to lead to an increase in the female/male earnings ratio in the future?

Accepted Answer

A)  As the labor force participation of women increases, their years of work experience will become more similar to men. 
B)  In recent years, a higher proportion of women have been preparing for careers in the professions. 
C)  As the proportion of families headed by a female parent increases, the average hours worked per week of female employees will decline. 
D)  Both a and b are correct. 
A)  As the labor force participation of women increases, their years of work experience will become more similar to men. 
B)  In recent years, a higher proportion of women have been preparing for careers in the professions. 
C)  As the proportion of families headed by a female parent increases, the average hours worked per week of female employees will decline. 
D)  Both a and b are correct.

Question 11

A union representing a group of workers will tend to be stronger when

Accepted Answer

A)  there are no good substitutes for the labor services of the unionized workers. 
B)  the domestic producers of the good produced by the unionized workers face intense competition from foreign suppliers of the good. 
C)  the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D)  the demand for the good produced by the unionized workers is highly elastic. 
A)  there are no good substitutes for the labor services of the unionized workers. 
B)  the domestic producers of the good produced by the unionized workers face intense competition from foreign suppliers of the good. 
C)  the cost of employing the unionized workers is a large part of the total cost of the product that they produce. 
D)  the demand for the good produced by the unionized workers is highly elastic.

Question 12

Relative to other countries, U.S. spending per pupil for public elementary and secondary education is

Accepted Answer

A)  among the lowest in the world. 
B)  roughly average when compared with other countries. 
C)  among the highest in the world. 
D)  higher than in most other developed countries but less than in developing countries. 
A)  among the lowest in the world. 
B)  roughly average when compared with other countries. 
C)  among the highest in the world. 
D)  higher than in most other developed countries but less than in developing countries.

Question 13

As the Medicare program is expanded to cover the cost of prescription drugs for the elderly, other things constant, this will lead to

Accepted Answer

A)  an increase in demand and higher prices for prescription drugs. 
B)  an increase in demand and lower prices for prescription drugs. 
C)  reduction in demand and lower prices for prescription drugs. 
D)  reduction in demand and higher prices for prescription drugs. 
A)  an increase in demand and higher prices for prescription drugs. 
B)  an increase in demand and lower prices for prescription drugs. 
C)  reduction in demand and lower prices for prescription drugs. 
D)  reduction in demand and higher prices for prescription drugs.

Question 14

If the interest rate were 5 percent, how much would people be willing to pay for a stock that was certain to yield a $10 per share stream of net earnings continuously in the future?

Accepted Answer

A)  $10 
B)  $20 
C)  $200 
D)  $400 
E)  $2,000 
A)  $10 
B)  $20 
C)  $200 
D)  $400 
E)  $2,000

Question 15

Which of the following is the largest source of revenue for the federal government?

Accepted Answer

A)  corporate income tax 
B)  payroll tax 
C)  personal income tax 
D)  user charges 
A)  corporate income tax 
B)  payroll tax 
C)  personal income tax 
D)  user charges

Question 16

Which of the following is most central to the understanding of the economic crisis of 2008?

Accepted Answer

A)  the decline of the stock market in late 2007 
B)  the housing boom (2001-2005) and bust (2007-2008) 
C)  the sharp rise in oil prices in 2008 
D)  unethical investment practices beginning in 2000 
A)  the decline of the stock market in late 2007 
B)  the housing boom (2001-2005) and bust (2007-2008) 
C)  the sharp rise in oil prices in 2008 
D)  unethical investment practices beginning in 2000

Question 17

Historically, which of the following has had the highest average annual rate of return?

Accepted Answer

A)  corporate bonds 
B)  money market mutual funds 
C)  corporate stocks 
D)  U.S. Treasury bonds 
A)  corporate bonds 
B)  money market mutual funds 
C)  corporate stocks 
D)  U.S. Treasury bonds

Question 18

Which of the following will reduce the risk accompanying equity (stock) investments?

Accepted Answer

A)  the purchase of shares of a mutual fund that holds the stocks of many diverse corporations 
B)  the purchasing and holding of equities over a lengthy period of time 
C)  the purchase of shares in firms doing business in a wider variety of industries and markets 
D)  all of the above 
A)  the purchase of shares of a mutual fund that holds the stocks of many diverse corporations 
B)  the purchasing and holding of equities over a lengthy period of time 
C)  the purchase of shares in firms doing business in a wider variety of industries and markets 
D)  all of the above

Question 19

Why is it that the airline pilots union will likely be stronger and more effective than the fruit pickers union?

Accepted Answer

First, airline pilots possess a highly s

Question 20

As the baby boom generation retires in the future, Social Security will have to

Accepted Answer

A)  reduce benefits to retirees. 
B)  increase taxes on workers. 
C)  borrow money. 
D)  utilize some combination of a, b, and c. 
A)  reduce benefits to retirees. 
B)  increase taxes on workers. 
C)  borrow money. 
D)  utilize some combination of a, b, and c.

In the petroleum industry, proved reserves are

Pollution charges will be efficient if

Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the

When is the definition and enforcement of property rights especially difficult?

What percentage of personal income tax revenue was collected from the top 1 percent of earners in 2008?

The opportunity cost of slowing global warming by reducing carbon dioxide emissions is

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

How has the share of the personal income tax paid by the rich (the top 1 percent of earners) and the not-so-well-off (the bottom half of earners) changed during the last four decades?

Currently, about ____ of U.S. households own stock, either directly or through an equity mutual fund.

Which of the following factors are likely to lead to an increase in the female/male earnings ratio in the future?

A union representing a group of workers will tend to be stronger when

Relative to other countries, U.S. spending per pupil for public elementary and secondary education is

As the Medicare program is expanded to cover the cost of prescription drugs for the elderly, other things constant, this will lead to

If the interest rate were 5 percent, how much would people be willing to pay for a stock that was certain to yield a $10 per share stream of net earnings continuously in the future?

Which of the following is the largest source of revenue for the federal government?

Which of the following is most central to the understanding of the economic crisis of 2008?

Historically, which of the following has had the highest average annual rate of return?

Which of the following will reduce the risk accompanying equity (stock) investments?

Why is it that the airline pilots union will likely be stronger and more effective than the fruit pickers union?

As the baby boom generation retires in the future, Social Security will have to

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters

Exam 16: Applying the Basics: Special Topics in Economics

In the petroleum industry, proved reserves are

Pollution charges will be efficient if

Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the

When is the definition and enforcement of property rights especially difficult?

What percentage of personal income tax revenue was collected from the top 1 percent of earners in 2008?

The opportunity cost of slowing global warming by reducing carbon dioxide emissions is

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

How has the share of the personal income tax paid by the rich (the top 1 percent of earners) and the not-so-well-off (the bottom half of earners) changed during the last four decades?

Currently, about ____ of U.S. households own stock, either directly or through an equity mutual fund.

Which of the following factors are likely to lead to an increase in the female/male earnings ratio in the future?

A union representing a group of workers will tend to be stronger when

Relative to other countries, U.S. spending per pupil for public elementary and secondary education is

As the Medicare program is expanded to cover the cost of prescription drugs for the elderly, other things constant, this will lead to

If the interest rate were 5 percent, how much would people be willing to pay for a stock that was certain to yield a $10 per share stream of net earnings continuously in the future?

Which of the following is the largest source of revenue for the federal government?

Which of the following is most central to the understanding of the economic crisis of 2008?

Historically, which of the following has had the highest average annual rate of return?

Which of the following will reduce the risk accompanying equity (stock) investments?

Why is it that the airline pilots union will likely be stronger and more effective than the fruit pickers union?

As the baby boom generation retires in the future, Social Security will have to

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Consumer Choice and Elasticity

Costs and the Supply of Goods

Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Filters