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