Question 1

What happens to a resource as it becomes scarcer?

Accepted Answer

A)  The price rises and this increases the future supply relative to demand. 
B)  The price rises and this increases the future demand relative to supply. 
C)  The price falls and this increases the future supply relative to demand. 
D)  The price falls and this increases the future demand relative to supply. 
A)  The price rises and this increases the future supply relative to demand. 
B)  The price rises and this increases the future demand relative to supply. 
C)  The price falls and this increases the future supply relative to demand. 
D)  The price falls and this increases the future demand relative to supply.

Question 2

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

Accepted Answer

An inelastic demand in the product marke

Question 3

Because of which provision in the tax code did more than one-third of all taxpayers either have a zero tax liability or actually receive money from the IRS in 2006?

Accepted Answer

A)  Earned Income Tax Credit 
B)  Standard Deduction 
C)  Marginal Tax Rate 
D)  Families with Low Income Credit 
A)  Earned Income Tax Credit 
B)  Standard Deduction 
C)  Marginal Tax Rate 
D)  Families with Low Income Credit

Question 4

Which of the following is true?

Accepted Answer

A)  Public school administrators have strong economic incentives to operate efficiently. 
B)  Increasing the competition between public and private schools tends to lower both the cost and quality of schools. 
C)  Competition between public and private schools is relatively low at the elementary and secondary level. 
D)  Competition among schools is less intense at the college level than is the case at the elementary and secondary level. 
A)  Public school administrators have strong economic incentives to operate efficiently. 
B)  Increasing the competition between public and private schools tends to lower both the cost and quality of schools. 
C)  Competition between public and private schools is relatively low at the elementary and secondary level. 
D)  Competition among schools is less intense at the college level than is the case at the elementary and secondary level.

Question 5

Overfishing in the ocean often

Accepted Answer

A)  is easily solved by shortening the fishing season. 
B)  is not caused by better technologies, which today's fishers would not use if they harmed the resource. 
C)  occurs only when regulators fail to regulate due to corruption. 
D)  is caused by many boats racing to catch more fish in a very short season. 
A)  is easily solved by shortening the fishing season. 
B)  is not caused by better technologies, which today's fishers would not use if they harmed the resource. 
C)  occurs only when regulators fail to regulate due to corruption. 
D)  is caused by many boats racing to catch more fish in a very short season.

Question 6

In the U.S. higher educational system, students and parents have choices as to which college or university the student attends and generally must finance part of it from personal funds. As a result of this different incentive structure, the U.S. higher educational system is

Accepted Answer

A)  one of the best in the world. 
B)  one of the worst in the world. 
C)  about average when compared to other higher educational systems. 
D)  relatively worse in international rankings than U.S. elementary and secondary education. 
A)  one of the best in the world. 
B)  one of the worst in the world. 
C)  about average when compared to other higher educational systems. 
D)  relatively worse in international rankings than U.S. elementary and secondary education.

Question 7

In 2005, average spending per pupil in public elementary and secondary schools in the United States was approximately

Accepted Answer

A)  $4,585. 
B)  $6,585. 
C)  $8,585. 
D)  $10,585. 
A)  $4,585. 
B)  $6,585. 
C)  $8,585. 
D)  $10,585.

Question 8

Social Security, officially known as Old Age and Survivors Insurance (OASI),

Accepted Answer

A)  collects funds from current workers and invests them in order to provide these workers with a stream of income during the retirement phase of life. 
B)  is based on the same principles as private insurance programs. 
C)  is an intergenerational income transfer program. 
D)  is a voluntary savings program run by the government. 
A)  collects funds from current workers and invests them in order to provide these workers with a stream of income during the retirement phase of life. 
B)  is based on the same principles as private insurance programs. 
C)  is an intergenerational income transfer program. 
D)  is a voluntary savings program run by the government.

Question 9

When the price of gasoline increases substantially, many consumers will

Accepted Answer

A)  turn to fuel saving alternatives like hybrid vehicles. 
B)  drive less. 
C)  take public transportation. 
D)  all of the above are true. 
A)  turn to fuel saving alternatives like hybrid vehicles. 
B)  drive less. 
C)  take public transportation. 
D)  all of the above are true.

Question 10

Which of the following states had the highest incidence of union membership as a percent of all wage and salary workers in 2010?

Accepted Answer

A)  New York, Hawaii, and Alaska 
B)  South Carolina, North Carolina, and Mississippi 
C)  Arkansas, North Carolina, and Texas 
D)  California, Florida, and Georgia 
A)  New York, Hawaii, and Alaska 
B)  South Carolina, North Carolina, and Mississippi 
C)  Arkansas, North Carolina, and Texas 
D)  California, Florida, and Georgia

Question 11

Which of the following would help control the future costs of healthcare?

Accepted Answer

A)  a new government program that would cover the cost of prescription drugs purchased by all healthcare consumers 
B)  an increase in the share of healthcare expenditures financed with low co-payment insurance 
C)  allowing consumers to purchase healthcare insurance from out-of-state providers 
D)  an increase in the tax benefits of purchasing healthcare through one's employer 
A)  a new government program that would cover the cost of prescription drugs purchased by all healthcare consumers 
B)  an increase in the share of healthcare expenditures financed with low co-payment insurance 
C)  allowing consumers to purchase healthcare insurance from out-of-state providers 
D)  an increase in the tax benefits of purchasing healthcare through one's employer

Question 12

When female/male earnings differentials are adjusted for age, education, language, and locational characteristics, the

Accepted Answer

A)  differential between the earnings of males and those of females increases substantially. 
B)  differential between the earnings of males and those of females does not change much. 
C)  corrected earnings of males are equal to those of similar females. 
D)  corrected earnings of females are greater than those of similar males. 
A)  differential between the earnings of males and those of females increases substantially. 
B)  differential between the earnings of males and those of females does not change much. 
C)  corrected earnings of males are equal to those of similar females. 
D)  corrected earnings of females are greater than those of similar males.

Question 13

As a result of the Smoot-Hawley trade bill of 1930,

Accepted Answer

A)  both the volume of U.S. trade and the tariff revenues derived from trade increased substantially. 
B)  the volume of U.S. trade decreased, but the tariff revenues derived from trade increased. 
C)  the volume of U.S. trade increased, but the tariff revenues derived from trade decreased. 
D)  both the volume of U.S. trade and the tariff revenues derived from trade decreased substantially. 
A)  both the volume of U.S. trade and the tariff revenues derived from trade increased substantially. 
B)  the volume of U.S. trade decreased, but the tariff revenues derived from trade increased. 
C)  the volume of U.S. trade increased, but the tariff revenues derived from trade decreased. 
D)  both the volume of U.S. trade and the tariff revenues derived from trade decreased substantially.

Question 14

A former union employee states: "We were on strike for two years. I know the eventual wage increase we received will never make up for the wages I lost, but I think the strike was worth it. We forced the company to give in to our demands." Evaluate these comments.

Accepted Answer

If income were the only thing that matte

Question 15

If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect

Accepted Answer

A)  an increase in government expenditures and a reduction in budget deficits. 
B)  an increase in government expenditures and an increase in budget deficits. 
C)  a decrease in government expenditures and a reduction in budget deficits. 
D)  a decrease in government expenditures and an increase in budget deficits. 
A)  an increase in government expenditures and a reduction in budget deficits. 
B)  an increase in government expenditures and an increase in budget deficits. 
C)  a decrease in government expenditures and a reduction in budget deficits. 
D)  a decrease in government expenditures and an increase in budget deficits.

Question 16

Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will

Accepted Answer

A)  focus on reducing overall carbon emissions. 
B)  emphasize changes like those imposed on prosperous nations by the Kyoto Treaty. 
C)  focus on reducing the effects of serious problems that we know to exist. 
D)  ensure that every precaution will be taken to reduce any possible risks for the future. 
A)  focus on reducing overall carbon emissions. 
B)  emphasize changes like those imposed on prosperous nations by the Kyoto Treaty. 
C)  focus on reducing the effects of serious problems that we know to exist. 
D)  ensure that every precaution will be taken to reduce any possible risks for the future.

Question 17

The achievement scores of American students are ____ than those of students in most developed countries, and spending per elementary student in the United States is ____ than that of most developed countries.

Accepted Answer

A)  higher; less 
B)  higher; greater 
C)  lower; greater 
D)  lower; less 
A)  higher; less 
B)  higher; greater 
C)  lower; greater 
D)  lower; less

Question 18

Which of the following contributed to the severity of the Great Depression in the 1930s?

Accepted Answer

A)  constant structural changes that created uncertainty and undermined markets 
B)  the Fed's policy of rapid monetary expansion during the early 1930s 
C)  a reduction in tariffs protecting many U.S. industries 
D)  a substantial tax rate reduction, which led to large deficits and high interest rates during the early 1930s 
A)  constant structural changes that created uncertainty and undermined markets 
B)  the Fed's policy of rapid monetary expansion during the early 1930s 
C)  a reduction in tariffs protecting many U.S. industries 
D)  a substantial tax rate reduction, which led to large deficits and high interest rates during the early 1930s

Question 19

Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?

Accepted Answer

A)  Their government sponsorship increased their cost of acquiring loanable funds. 
B)  They were unable to earn profits and pay dividends to their shareholders. 
C)  Congressional regulations exerted little or no impact on their business operations. 
D)  Their activities were more susceptible to political influence and favoritism. 
A)  Their government sponsorship increased their cost of acquiring loanable funds. 
B)  They were unable to earn profits and pay dividends to their shareholders. 
C)  Congressional regulations exerted little or no impact on their business operations. 
D)  Their activities were more susceptible to political influence and favoritism.

Question 20

Spending per student in American public elementary schools is ____ than that of most developed countries.

Accepted Answer

A)  substantially less 
B)  slightly less 
C)  slightly more 
D)  substantially more 
A)  substantially less 
B)  slightly less 
C)  slightly more 
D)  substantially more

What happens to a resource as it becomes scarcer?

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

Because of which provision in the tax code did more than one-third of all taxpayers either have a zero tax liability or actually receive money from the IRS in 2006?

Which of the following is true?

Overfishing in the ocean often

In the U.S. higher educational system, students and parents have choices as to which college or university the student attends and generally must finance part of it from personal funds. As a result of this different incentive structure, the U.S. higher educational system is

In 2005, average spending per pupil in public elementary and secondary schools in the United States was approximately

Social Security, officially known as Old Age and Survivors Insurance (OASI),

When the price of gasoline increases substantially, many consumers will

Which of the following states had the highest incidence of union membership as a percent of all wage and salary workers in 2010?

Which of the following would help control the future costs of healthcare?

When female/male earnings differentials are adjusted for age, education, language, and locational characteristics, the

As a result of the Smoot-Hawley trade bill of 1930,

A former union employee states: "We were on strike for two years. I know the eventual wage increase we received will never make up for the wages I lost, but I think the strike was worth it. We forced the company to give in to our demands." Evaluate these comments.

If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect

Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will

The achievement scores of American students are than those of students in most developed countries, and spending per elementary student in the United States is than that of most developed countries.

Which of the following contributed to the severity of the Great Depression in the 1930s?

Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?

Spending per student in American public elementary schools is ____ than that of most developed countries.

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

What happens to a resource as it becomes scarcer?

What characteristics of both the product market and the labor market enhance the likelihood that a union will be effective?

Because of which provision in the tax code did more than one-third of all taxpayers either have a zero tax liability or actually receive money from the IRS in 2006?

Which of the following is true?

Overfishing in the ocean often

In the U.S. higher educational system, students and parents have choices as to which college or university the student attends and generally must finance part of it from personal funds. As a result of this different incentive structure, the U.S. higher educational system is

In 2005, average spending per pupil in public elementary and secondary schools in the United States was approximately

Social Security, officially known as Old Age and Survivors Insurance (OASI),

When the price of gasoline increases substantially, many consumers will

Which of the following states had the highest incidence of union membership as a percent of all wage and salary workers in 2010?

Which of the following would help control the future costs of healthcare?

When female/male earnings differentials are adjusted for age, education, language, and locational characteristics, the

As a result of the Smoot-Hawley trade bill of 1930,

A former union employee states: "We were on strike for two years. I know the eventual wage increase we received will never make up for the wages I lost, but I think the strike was worth it. We forced the company to give in to our demands." Evaluate these comments.

If fiscal policy were able to exert a significant impact on the economy during the Great Depression, we would expect

Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will

The achievement scores of American students are ____ than those of students in most developed countries, and spending per elementary student in the United States is ____ than that of most developed countries.

Which of the following contributed to the severity of the Great Depression in the 1930s?

Which of the following was the result of Fannie Mae and Freddie Mac being both privately-owned and government-sponsored enterprises?

Spending per student in American public elementary schools is ____ than that of most developed countries.

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

The achievement scores of American students are than those of students in most developed countries, and spending per elementary student in the United States is than that of most developed countries.