Question 1

Under the current Social Security system, married persons may draw benefits based on

Accepted Answer

A)  only their own earnings. 
B)  their own earnings or draw 50 percent of the benefits earned by their spouse. 
C)  their own earnings plus 50 percent of their spouse's earnings. 
D)  their own earnings plus 100 percent of their spouse's earnings. 
A)  only their own earnings. 
B)  their own earnings or draw 50 percent of the benefits earned by their spouse. 
C)  their own earnings plus 50 percent of their spouse's earnings. 
D)  their own earnings plus 100 percent of their spouse's earnings.

Question 2

From 1950 to 2008, union membership has declined from more than 30 percent of the workforce to approximately 12 percent. Over this period, the share of national income going to labor

Accepted Answer

A)  declined substantially. 
B)  increased substantially. 
C)  remained approximately the same. 
D)  initially increased but has fallen recently. 
A)  declined substantially. 
B)  increased substantially. 
C)  remained approximately the same. 
D)  initially increased but has fallen recently.

Question 3

Which of the following tends to increase the attractiveness of a retirement system based on savings and investment rather than pay-as-you-go principles?

Accepted Answer

A)  a persistent increase in the number of workers relative to the number of retirees 
B)  a large number of workers relative to the number of retirees 
C)  a reduction in the number of workers relative to the number of retirees 
D)  a persistent increase in the life expectancy of retirees. 
A)  a persistent increase in the number of workers relative to the number of retirees 
B)  a large number of workers relative to the number of retirees 
C)  a reduction in the number of workers relative to the number of retirees 
D)  a persistent increase in the life expectancy of retirees.

Question 4

During the last sixty years, the broad stock market (Standard and Poor's 500 Index) yielded an average annual nominal rate of return of approximately ____ and real rate of return of approximately ____.

Accepted Answer

A)  5 percent; 2 percent 
B)  10 percent; 7 percent 
C)  17 percent; 9 percent 
D)  9 percent; 17 percent 
A)  5 percent; 2 percent 
B)  10 percent; 7 percent 
C)  17 percent; 9 percent 
D)  9 percent; 17 percent

Question 5

Resources that are not created or renewed at a significant rate, and therefore could potentially be used up over time, are called

Accepted Answer

A)  renewable resources. 
B)  nonrenewable resources. 
C)  fixed resources. 
D)  earthly geographic resources. 
A)  renewable resources. 
B)  nonrenewable resources. 
C)  fixed resources. 
D)  earthly geographic resources.

Question 6

Which of the following is true?

Accepted Answer

A)  An increase in the interest rate will tend to increase stock prices. 
B)  A reduction in the interest rate will tend to increase stock prices. 
C)  An increase in the inflation rate will tend to increase stock prices. 
D)  There is no reason to believe that changes in interest rates will influence stock prices. 
A)  An increase in the interest rate will tend to increase stock prices. 
B)  A reduction in the interest rate will tend to increase stock prices. 
C)  An increase in the inflation rate will tend to increase stock prices. 
D)  There is no reason to believe that changes in interest rates will influence stock prices.

Question 7

During the last four decades, the composition of federal spending has

Accepted Answer

A)  been virtually unchanged, but federal spending as a share of GDP has declined substantially. 
B)  been virtually unchanged, but federal spending as a share of GDP has increased sharply. 
C)  shifted away from national defense and toward spending on income transfers and health care. 
D)  shifted away from health care and income transfers and toward spending on national defense. 
A)  been virtually unchanged, but federal spending as a share of GDP has declined substantially. 
B)  been virtually unchanged, but federal spending as a share of GDP has increased sharply. 
C)  shifted away from national defense and toward spending on income transfers and health care. 
D)  shifted away from health care and income transfers and toward spending on national defense.

Question 8

Economic analysis implies that one of the most effective ways to deal with potential damages from environmental pollution is to

Accepted Answer

A)  declare the relevant resources to be public goods, owned by the public. 
B)  establish and enforce property rights for the resources that are being damaged, if possible. 
C)  allow the government to take over and control all natural resources. 
D)  enact legislation that makes all environmental pollution illegal. 
A)  declare the relevant resources to be public goods, owned by the public. 
B)  establish and enforce property rights for the resources that are being damaged, if possible. 
C)  allow the government to take over and control all natural resources. 
D)  enact legislation that makes all environmental pollution illegal.

Question 9

The scientific evidence on the causes and consequences of global warming

Accepted Answer

A)  is clear and indisputable. 
B)  has considerable uncertainty in its findings. 
C)  indicates global warming should be stopped regardless of cost. 
D)  is of no importance to economists. 
A)  is clear and indisputable. 
B)  has considerable uncertainty in its findings. 
C)  indicates global warming should be stopped regardless of cost. 
D)  is of no importance to economists.

Question 10

The hourly earnings of full-time working women were a little more than what percent of those of their male counterparts in 2007?

Accepted Answer

A)  60 percent 
B)  70 percent 
C)  80 percent 
D)  90 percent 
A)  60 percent 
B)  70 percent 
C)  80 percent 
D)  90 percent

Question 11

When the government both provides education and covers its costs through taxation, economic analysis indicates that

Accepted Answer

A)  the government-operated schools can be expected to supply a high quality education at a low cost. 
B)  parents will be in a strong position to discipline poorly performing schools and make sure that the school their child attends is providing quality schooling. 
C)  public school administrators can be expected to care more about pleasing parents than about pleasing government officials and teachers' unions. 
D)  the parent/consumer will be in a weak position to make choices that will assure that their child receives a quality education at an economical cost. 
A)  the government-operated schools can be expected to supply a high quality education at a low cost. 
B)  parents will be in a strong position to discipline poorly performing schools and make sure that the school their child attends is providing quality schooling. 
C)  public school administrators can be expected to care more about pleasing parents than about pleasing government officials and teachers' unions. 
D)  the parent/consumer will be in a weak position to make choices that will assure that their child receives a quality education at an economical cost.

Question 12

What can be said about the demand and supply of natural resources?

Accepted Answer

A)  The quantity demanded of a natural resource will generally be less responsive to a change in price in the long run than in the short run. 
B)  The supply of a natural resource will generally be more responsive to a price change in the long run than in the short run. 
C)  The supply of a natural resource is fixed by nature; it cannot be responsive to a price change in the long run. 
D)  None of the above is correct. 
A)  The quantity demanded of a natural resource will generally be less responsive to a change in price in the long run than in the short run. 
B)  The supply of a natural resource will generally be more responsive to a price change in the long run than in the short run. 
C)  The supply of a natural resource is fixed by nature; it cannot be responsive to a price change in the long run. 
D)  None of the above is correct.

Question 13

The F/M earnings ratio for full-time workers

Accepted Answer

A)  has been steadily declining. 
B)  has been roughly constant since 1980. 
C)  has increased significantly since 1980. 
D)  increased until 1980, but it has declined steadily during the last two decades. 
A)  has been steadily declining. 
B)  has been roughly constant since 1980. 
C)  has increased significantly since 1980. 
D)  increased until 1980, but it has declined steadily during the last two decades.

Question 14

Which of the following contributed to the soaring housing prices during 2002-2004?

Accepted Answer

A)  the Fed's high-interest rate policy 
B)  the tightening of loan standards by commercial lenders 
C)  the increasing popularity of fixed-rate, long-term loans to lock in low interest rates 
D)  the Fed's low-interest rate policy 
A)  the Fed's high-interest rate policy 
B)  the tightening of loan standards by commercial lenders 
C)  the increasing popularity of fixed-rate, long-term loans to lock in low interest rates 
D)  the Fed's low-interest rate policy

Question 15

Water supply problems are widespread, indicating that

Accepted Answer

A)  water markets can seldom work, because water Is a necessity. 
B)  property rights are frequently incomplete and not fully tradable. 
C)  water is too important to ration by price. 
D)  water markets are seldom controlled by government. 
A)  water markets can seldom work, because water Is a necessity. 
B)  property rights are frequently incomplete and not fully tradable. 
C)  water is too important to ration by price. 
D)  water markets are seldom controlled by government.

Question 16

Economic analysis indicates that environmental quality

Accepted Answer

A)  is something that people value, and therefore are willing to pay for. 
B)  should always be regulated by the government. 
C)  is something people should be forced to pay for no matter what their income levels. 
D)  is not important to most people. 
A)  is something that people value, and therefore are willing to pay for. 
B)  should always be regulated by the government. 
C)  is something people should be forced to pay for no matter what their income levels. 
D)  is not important to most people.

Question 17

Does it ever make sense to purchase a stock that has never paid a dividend? Explain.

Accepted Answer

Yes. If a firm does not pay out its prof

Question 18

Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?

Accepted Answer

A)  the share of healthcare expenditures financed directly by the consumer 
B)  the share of healthcare expenditures financed by third parties 
C)  the prices of healthcare relative to the prices of other goods and services 
D)  both b and c 
A)  the share of healthcare expenditures financed directly by the consumer 
B)  the share of healthcare expenditures financed by third parties 
C)  the prices of healthcare relative to the prices of other goods and services 
D)  both b and c

Question 19

Empirical evidence indicates that

Accepted Answer

A)  changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. 
B)  the increase in carbon dioxide, over thousands of years, is definitely the cause of global warming. 
C)  if global warming continues, the sea levels will definitely rise. 
D)  none of the above are true. 
A)  changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. 
B)  the increase in carbon dioxide, over thousands of years, is definitely the cause of global warming. 
C)  if global warming continues, the sea levels will definitely rise. 
D)  none of the above are true.

Question 20

By 2030, the number of workers per Social Security beneficiary will be approximately

Accepted Answer

A)  two. 
B)  three. 
C)  four. 
D)  six. 
A)  two. 
B)  three. 
C)  four. 
D)  six.

Under the current Social Security system, married persons may draw benefits based on

From 1950 to 2008, union membership has declined from more than 30 percent of the workforce to approximately 12 percent. Over this period, the share of national income going to labor

Which of the following tends to increase the attractiveness of a retirement system based on savings and investment rather than pay-as-you-go principles?

During the last sixty years, the broad stock market (Standard and Poor's 500 Index) yielded an average annual nominal rate of return of approximately and real rate of return of approximately .

Resources that are not created or renewed at a significant rate, and therefore could potentially be used up over time, are called

Which of the following is true?

During the last four decades, the composition of federal spending has

Economic analysis implies that one of the most effective ways to deal with potential damages from environmental pollution is to

The scientific evidence on the causes and consequences of global warming

The hourly earnings of full-time working women were a little more than what percent of those of their male counterparts in 2007?

When the government both provides education and covers its costs through taxation, economic analysis indicates that

What can be said about the demand and supply of natural resources?

The F/M earnings ratio for full-time workers

Which of the following contributed to the soaring housing prices during 2002-2004?

Water supply problems are widespread, indicating that

Economic analysis indicates that environmental quality

Does it ever make sense to purchase a stock that has never paid a dividend? Explain.

Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?

Empirical evidence indicates that

By 2030, the number of workers per Social Security beneficiary will be approximately

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

Under the current Social Security system, married persons may draw benefits based on

From 1950 to 2008, union membership has declined from more than 30 percent of the workforce to approximately 12 percent. Over this period, the share of national income going to labor

Which of the following tends to increase the attractiveness of a retirement system based on savings and investment rather than pay-as-you-go principles?

During the last sixty years, the broad stock market (Standard and Poor's 500 Index) yielded an average annual nominal rate of return of approximately ____ and real rate of return of approximately ____.

Resources that are not created or renewed at a significant rate, and therefore could potentially be used up over time, are called

Which of the following is true?

During the last four decades, the composition of federal spending has

Economic analysis implies that one of the most effective ways to deal with potential damages from environmental pollution is to

The scientific evidence on the causes and consequences of global warming

The hourly earnings of full-time working women were a little more than what percent of those of their male counterparts in 2007?

When the government both provides education and covers its costs through taxation, economic analysis indicates that

What can be said about the demand and supply of natural resources?

The F/M earnings ratio for full-time workers

Which of the following contributed to the soaring housing prices during 2002-2004?

Water supply problems are widespread, indicating that

Economic analysis indicates that environmental quality

Does it ever make sense to purchase a stock that has never paid a dividend? Explain.

Which of the following grew rapidly after the passage of the Medicare and Medicaid programs in the mid-1960s?

Empirical evidence indicates that

By 2030, the number of workers per Social Security beneficiary will be approximately

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

During the last sixty years, the broad stock market (Standard and Poor's 500 Index) yielded an average annual nominal rate of return of approximately and real rate of return of approximately .