Navigation » List of Schools » Pierce College » Economics » Economics 1 – Principles of Economics » Summer 2020 » Final Exam
Below are the questions for the exam with the choices of answers:
Question #1
A then it will set two poverty lines that it applies to welfare and the near-poor.
B then it would be difficult to compare poverty rates over time.
C then a substantial share of the U.S. population will subsist in dire poverty.
D it will be useful to have a poverty line whose basic definition changes a lot.
Question #2
A A death tax
B An estate tax
C A redistribution tax
D An inheritance tax
Question #3
A equality and wealth distribution
B inequality and poverty
C wealth distribution and poverty
D equality and inequality
Question #4
A AFDC
B ADFC
C TANF
D TNAF
Question #5
A illiterate poor
B near-poor
C working poor
D poverty trapped
Question #6
A a tax refund; having earned income
B a tax break; having earned income
C an increased standard of living; EIC
D a reduced standard of living; TANF
Question #7
A married men with families who were below the poverty line.
B only those orphans who were living below the poverty line.
C all mothers with children who were below the poverty line.
D married women with families who were below the poverty line.
Question #8
A trying to assure that a ladder of opportunity is widely available
B a tax imposed on the value of inheritances
C redistribution from those with high incomes to those with low incomes
D the three mains sets of tools it can use include all of the above
Question #9
A import quota
B dumping
C export quota
D “rules of origin”
Question #10
A protectionism will prevent them from applying for those jobs in other industries.
B protectionism forces them to pay higher prices for basic necessities like clothing and food.
C protectionism will encourage foreign workers to apply for American jobs.
D protectionism provides a barrier to entry to the job markets that the low-wage earners want entry to.
Question #11
A General Agreement on Tariffs and Trade.
B General Association for Trade and Tariffs.
C General Accounting for Tariff and Trade.
D General Association on Technology and Trade.
Question #12
A $8.25/hour
B $9.25/hour
C $6.25/hour
D $7.25/hour
Question #13
A Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.
B Companies seek the lowest market prices on products in order to gain market share, resulting in inferior goods and increased waste and pollution.
C Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution.
D Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits.
Question #14
A National Interest Argument
B Import Limitation Argument
C Buy-American Argument
D Anti-Dumping Argument
Question #15
A surplus goods
B hazardous goods
C imported products
D exported products
Question #16
A a non-tariff barrier
B an import quota
C a government bureaucracy
D a quota
Question #17
A there will be adequate supplies of crucial resources in case they are needed for national defence.
B it will not be subjected to a takeover from a foreign competitor.
C domestic producers can attain the economies of scale to allow them to compete in world markets.
D firms will be protected from subsidized foreign competition.
Question #18
A limit voluntary exchanges.
B protect domestic consumers of goods.
C protect domestic producers of exported goods.
D protect foreign producers of goods.
Question #19
A 75%; 90%
B 10%; 25%
C 25%; 50%
D 50%; 75%
Question #20
A decrease; decrease
B increase; decrease
C increase; increase
D decrease; increase
Question #21
A Alland has an absolute advantage in producing food but will not trade with Georgeland.
B Georgeland has both a comparative and absolute advantage in producing clothing.
C Alland has a comparative advantage, but not an absolute advantage, in producing food.
D Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing.
Question #22
A comparative advantage
B relative cost
C opportunity cost
D absolute advantage
Question #23
A 60%; 60%
B 90%; 90%
C 30%; 30%
D 10%; 10%
Question #24
A specialization
B worker productivity
C lower opportunity costs
D economies of scale
Question #25
A there are no incentives for Beta to engage in international specialization and trade of apples and oranges.
B it is in the interest of both countries to specialize and trade with one another.
C there are no incentives for Alpha to specialize and trade with Beta.
D it is in the interest of Beta to grow oranges and trade for apples.
Question #26
A it cannot gain from international trade unless it has an absolute advantage in every other commodity.
B it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.
C it can gain from international trade in that commodity only if it has an absolute advantage in that commodity.
D it cannot gain from international trade in the commodity.
Question #27
A China has a comparative advantage in the production of rice.
B India has an absolute advantage in the production of rice.
C China has both an absolute and comparative advantage in the production of rice.
D India has a comparative advantage in the production of rice.
Question #28
A relative cost
B absolute cost
C opportunity cost
D comparative cost
Question #29
A Germany has an absolute advantage in the production of maple syrup.
B Canada has an absolute advantage in the production of maple syrup.
C Canada has a comparative advantage in the production of hockey sticks.
D Germany has a comparative advantage in the production of hockey sticks.
Question #30
A may be able to produce something at a lower dollar cost than another party.
B may be able to produce everything relatively more efficiently than another party.
C with an absolute advantage in producing two different may export goods both of those goods to the other party.
D may be able to produce something at a lower opportunity cost than another party.
Question #31
A loss; exit; losses on their earnings
B profit or loss; entry and exit; a zero-profit outcome
C profit or loss; exit; economic profits
D profit; entry; a price that lies at the very bottom of the AC curve
Question #32
A at the very top of the AC curve.
B on the upward-sloping portion of the average cost curve.
C at the very bottom of the AC curve.
D on the downward-sloping portion of the average cost curve.
Question #33
A differentiate their product.
B be socially responsible.
C be environmentally responsible.
D be perceived more favorably.
Question #34
A match price cuts, but not price increases.
B match price increases, but not price cuts.
C stand at opposite ends of the competition spectrum.
D stand at the high point of the competition spectrum.
Question #35
A zero profits result for all.
B costs for all are driven up.
C they end up acting very much like monopolistic competitors.
D they end up acting very much like imperfect competitors.
Question #36
A a lower quantity of a good and charge a higher price
B the price that people are willing to pay is lower
C a higher quantity of a good and charge a lower price
D the price people are willing to pay is not more
Question #37
A total cost curve.
B total marginal cost curve
C average cost curve.
D average variable cost curve.
Question #38
A they will wish to cooperate to make decisions about what quantity to produce.
B they will be unable to earn higher-than-normal profits in the short run.
C they will wish to cooperate to make decisions about what price to charge.
D they will be unable to earn higher-than-normal profits in the long run.
Question #39
A $1.00 or less
B $2.00 or less
C $1.75 or less
D $0.75 or less
Question #40
A to hire more staff to lower unemployment.
B to maximize profits in the long run.
C to increase supply to benefit consumers.
D to discourage short run competition.
Question #41
A the entry of new firms will eventually cause price to decline.
B abnormally high profits will attract the entry of new firms.
C surviving firms earn only a normal level of profit in the long run.
D entry will be blocked even if firms are earning high profits.
Question #42
A abnormally high sustained profits.
B elimination of barriers to entry
C irregularly high unsustainable profits.
D government deregulation.
Question #43
A I, III and IV
B I, II, III, IV, and VI
C I, II, and III
D all of the above
Question #44
A nuclear power sector
B postal services sector
C telecommunications sector
D banking sector
Question #45
A local television broadcaster
B local bathroom fixtures shop
C local fast-food restaurant
D local electricity distributor
Question #46
A producing maximum output where price is equal to its marginal cost.
B producing output where MR = MC and charging a price along the demand curve.
C setting output at MR = MC and setting price at the demand curve’s highest point.
D setting the price at the level that will maximize its per-unit profit.
Question #47
A Intellectual property
B Trademark
C Copyright
D Patent
Question #48
A have legal protection to prevent copying its methods of production for commercial use.
B acquire rights for its investors to produce and sell their product.
C raise prices, cut production, and realize positive economic profits.
D have a patent giving it exclusive legal rights to make, use, and sell for a limited time.
Question #49
A whether consumers will spend on different products
B whether consumers will purchase its product
C the competitive actions of other business firms
D barriers to entry and competitors’ patent protection
Question #50
A minimized at the output that maximizes the industry’s profitability.
B lowest when there are a large number of producers in the industry.
C lowest when a single firm generates the entire output of the industry.
D lower for the smaller firms than for larger firms.
Question #51
A price takers find market analysis is too costly
B they are very small players in the overall market
C high degree of similarity to competitor’s products
D they can increase output without affecting quality
Question #52
A marginal product is falling.
B average product is falling.
C average product is rising.
D marginal product is rising.
Question #53
A derived demand.
B marginal demand.
C market demand.
D average demand.
Question #54
A imposition of hurdle rates of interest
B higher retained earnings from past profits
C cost of financial capital paid by a firm
D tax credits for physical capital investments
Question #55
A it must be a relatively small player compared to its competitors in the overall market.
B quality differences will be very perceptible and will play a major role in purchasers’ decisions.
C pressure from competing firms will force acceptance of the prevailing market price.
D it can increase or decrease its output without affecting overall quantity supplied in the market.
Question #56
A hypothetical extreme.
B realistic assumption.
C hypothetical assumption.
D realistic extreme.
Question #57
A can be tailored to exceed the price of its inputs.
B is dictated by the forces of demand and supply.
C can be set by management to maximize profits.
D can be tailored to meet the price of its inputs.
Question #58
A long run; the quantity of output where profits are highest
B short run; the quantity of output where profits are highest
C long run; methods to reduce production and shut down
D short run; profits by ignoring the concept of total cost analysis