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