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 would be difficult to compare poverty rates over time.
C then it will set two poverty lines that it applies to welfare and the near-poor.
D it will be useful to have a poverty line whose basic definition changes a lot.
Question #2
A An estate tax
B A death tax
C An inheritance tax
D A redistribution tax
Question #3
A equality and wealth distribution
B wealth distribution and poverty
C equality and inequality
D inequality and poverty
Question #4
A ADFC
B TANF
C TNAF
D AFDC
Question #5
A illiterate poor
B poverty trapped
C near-poor
D working poor
Question #6
A an increased standard of living; EIC
B a reduced standard of living; TANF
C a tax break; having earned income
D a tax refund; having earned income
Question #7
A all mothers with children who were below the poverty line.
B only those orphans who were living below the poverty line.
C married men with families who were below the poverty line.
D married women with families who were below the poverty line.
Question #8
A a tax imposed on the value of inheritances
B trying to assure that a ladder of opportunity is widely available
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 “rules of origin”
C import quota
D export quota
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 provides a barrier to entry to the job markets that the low-wage earners want entry to.
D protectionism forces them to pay higher prices for basic necessities like clothing and food.
Question #11
A General Agreement on Tariffs and Trade.
B General Accounting for Tariff and Trade.
C General Association for Trade and Tariffs.
D General Association on Technology and Trade.
Question #12
A $8.25/hour
B $7.25/hour
C $6.25/hour
D $9.25/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 Companies seek to influence environmental legislation standards are set to the lowest possible standards in the USA in order to maximize profits.
C Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution.
D 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.
Question #14
A Anti-Dumping Argument
B Import Limitation Argument
C National Interest Argument
D Buy-American Argument
Question #15
A surplus goods
B exported products
C imported products
D hazardous goods
Question #16
A a non-tariff barrier
B a quota
C an import 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 it will not be subjected to a takeover from a foreign competitor.
D there will be adequate supplies of crucial resources in case they are needed for national defence.
Question #18
A protect domestic producers of exported goods.
B protect foreign producers of goods.
C protect domestic consumers of goods.
D limit voluntary exchanges.
Question #19
A 50%; 75%
B 75%; 90%
C 10%; 25%
D 25%; 50%
Question #20
A increase; decrease
B decrease; decrease
C decrease; increase
D increase; increase
Question #21
A Alland has a comparative advantage, but not an absolute advantage, in producing food.
B Georgeland has both a comparative and absolute advantage in producing clothing.
C Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing.
D Alland has an absolute advantage in producing food but will not trade with Georgeland.
Question #22
A opportunity cost
B comparative advantage
C relative cost
D absolute advantage
Question #23
A 30%; 30%
B 10%; 10%
C 60%; 60%
D 90%; 90%
Question #24
A lower opportunity costs
B specialization
C economies of scale
D worker productivity
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 Beta to grow oranges and trade for apples.
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 gain from international trade in that commodity only if it has an absolute advantage in that commodity.
C it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.
D it cannot gain from international trade in the commodity.
Question #27
A China has both an absolute and comparative advantage in the production of rice.
B China has a comparative advantage in the production of rice.
C India has an absolute advantage in the production of rice.
D India has a comparative 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 an absolute advantage in the production of maple syrup.
B Germany 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 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 at the very bottom of the AC curve.
B on the upward-sloping portion of the average cost curve.
C on the downward-sloping portion of the average cost curve.
D at the very top of the AC curve.
Question #33
A be socially responsible.
B be environmentally responsible.
C be perceived more favorably.
D differentiate their product.
Question #34
A match price increases, but not price cuts.
B match price cuts, but not price increases.
C stand at the high point of the competition spectrum.
D stand at opposite ends of the competition spectrum.
Question #35
A they end up acting very much like monopolistic competitors.
B zero profits result for all.
C they end up acting very much like imperfect competitors.
D costs for all are driven up.
Question #36
A the price people are willing to pay is not more
B a higher quantity of a good and charge a lower price
C the price that people are willing to pay is lower
D a lower quantity of a good and charge a higher price
Question #37
A total marginal cost curve
B total cost curve.
C average cost curve.
D average variable cost curve.
Question #38
A they will be unable to earn higher-than-normal profits in the short run.
B they will be unable to earn higher-than-normal profits in the long run.
C they will wish to cooperate to make decisions about what price to charge.
D they will wish to cooperate to make decisions about what quantity to produce.
Question #39
A $0.75 or less
B $1.00 or less
C $2.00 or less
D $1.75 or less
Question #40
A to hire more staff to lower unemployment.
B to increase supply to benefit consumers.
C to maximize profits in the long run.
D to discourage short run competition.
Question #41
A the entry of new firms will eventually cause price to decline.
B entry will be blocked even if firms are earning high profits.
C abnormally high profits will attract the entry of new firms.
D surviving firms earn only a normal level of profit in the long run.
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, and III
C I, II, III, IV, and VI
D all of the above
Question #44
A telecommunications sector
B banking sector
C nuclear power sector
D postal services sector
Question #45
A local television broadcaster
B local electricity distributor
C local fast-food restaurant
D local bathroom fixtures shop
Question #46
A setting the price at the level that will maximize its per-unit profit.
B producing maximum output where price is equal to its marginal cost.
C producing output where MR = MC and charging a price along the demand curve.
D setting output at MR = MC and setting price at the demand curve’s highest point.
Question #47
A Copyright
B Intellectual property
C Patent
D Trademark
Question #48
A raise prices, cut production, and realize positive economic profits.
B have a patent giving it exclusive legal rights to make, use, and sell for a limited time.
C have legal protection to prevent copying its methods of production for commercial use.
D acquire rights for its investors to produce and sell their product.
Question #49
A the competitive actions of other business firms
B barriers to entry and competitors’ patent protection
C whether consumers will spend on different products
D whether consumers will purchase its product
Question #50
A lowest when a single firm generates the entire output of the industry.
B lowest when there are a large number of producers in the industry.
C minimized at the output that maximizes the industry’s profitability.
D lower for the smaller firms than for larger firms.
Question #51
A high degree of similarity to competitor’s products
B price takers find market analysis is too costly
C they can increase output without affecting quality
D they are very small players in the overall market
Question #52
A marginal product is rising.
B average product is falling.
C average product is rising.
D marginal product is falling.
Question #53
A marginal demand.
B market demand.
C average demand.
D derived demand.
Question #54
A imposition of hurdle rates of interest
B tax credits for physical capital investments
C higher retained earnings from past profits
D cost of financial capital paid by a firm
Question #55
A it can increase or decrease its output without affecting overall quantity supplied in the market.
B pressure from competing firms will force acceptance of the prevailing market price.
C quality differences will be very perceptible and will play a major role in purchasers’ decisions.
D it must be a relatively small player compared to its competitors in the overall market.
Question #56
A hypothetical extreme.
B realistic extreme.
C realistic assumption.
D hypothetical assumption.
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 short run; the quantity of output where profits are highest
B short run; profits by ignoring the concept of total cost analysis
C long run; the quantity of output where profits are highest
D long run; methods to reduce production and shut down