1) Because the benefits distributed under TANF and Medicaid are essentially controlled by the states, critics argue that

a.recipients can receive benefits for a longer time period than if the programs were controlled by the federal government.

b.people receiving benefits have greater incentive to work more.

c.poor people with equal needs receive unequal benefits.

d.a negative income tax controlled by the federal government is less efficient.

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2) A monopsonist hires the amount of labor where the marginal revenue product of labor equals the:

a.wage rate.

b.marginal factor cost of labor.

c.price of the monopsonist's product.

d.marginal product of labor.

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3) If a box of Swiss chocolate priced at 100 francs can be purchased for $50, the exchange rate is:

a.4.00 francs per dollar.

b.0.50 dollars per franc.

c.4.00 dollars per franc.

d.0.50 francs per dollar.

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19) Thebestnumber of workers for any employer to hire is that quantity in which:

a.total costs are minimized.

b.total revenue is maximized.

c.the marginal revenue product equals the marginal factor cost.

d.the marginal revenue product exceeds the marginal factor cost.

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20) Currently, union membership in the United States is about what percentage of civilian employees?

a.15 percent.

b.25 percent.

c.20 percent.

d.10 percent.

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21) According to the rule of reason, when would the courts find a monopoly in violation of the Sherman Antitrust Act?

a.Only when the monopoly engaged in illegal business practices.

b.Always-monopoly is per se illegal under the rule of reason.

c.Only when the monopoly charged excessively high prices.

d.Only when the monopoly created negative externalities.

22) Which of the following imposed regulation on its industry?

a.Staggers Rail Act of 1980

b.Bus Regulatory Reform Act of 1982

c.Motor Carrier Act of 1982

d.Interstate Commerce Act of 1887.

25) Under a rule of reason approach, an act is illegal:

a.if a firm engages in price discrimination.

b.only if it is shown to result in an anticompetitive outcome.

c.if two parties merge.

d.if two firms engage in price fixing.

27) Which of the following isnot trueabout a monopsonist?

a.It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor.

b.It can set the wage rate and hire any desired number of workers at that wage.

c.It usually extracts rents from its monopsony power.

d.It is the only buyer of labor in a market.

28) If the MRP of labor decreases, labor:

a.supply will decrease.

b.demand will decrease.

c.supply will increase.

d.demand will increase.

29) If U.S. buyers purchased $500 billion of foreign goods and foreign buyers purchased $400 billion of U.S. goods, the U.S. balance of trade would be:

a.$100 billion.

b.$400 billion.

c.$100 billion.

d.-$500 billion.

30) Which of the following statements istrue?

a.After cash assistance and in-kind transfers are considered the distribution of income in the United States is more unequal.

b.Unemployment compensation is an example of an in-kind transfer.

c.All people in poverty are on welfare.

d.Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished.

31)A country is said to have an absolute advantage in the production of a good when:

a.it has a favorable exchange rate compared to another country's currency.

b.it specializes in the production of the good.

c.its opportunity cost of producing the good is lower than another country.

d.it can produce the good using fewer resources than another country.

32) Suppose Japan has a comparative advantage over Canada in the production ofDVDs. This means that Japan:

a.needs fewer resources to produce DVDS than does Canada.

b.has a lower opportunity cost of DVD production than does Canada.

c.can produce more DVDs in a given period of time than can Canada.

d.has better technology for producing DVDs than does Canada.

33) In international trade, an infant industry is one:

a.that protects firms that produce products for infants.

b.with a large number of very small firms.

c.in the early stages of its development.

d.in which the firms are experiencing very small profits.

34)The rules of the WTO:

a.apply to both domestic trade within a nation and international trade with other nations.

b.apply only to domestic trade within a nation.

c.include a prohibition of tariffs.

d.apply only to trade among nations.

36)Consider a law that limits women's access to certain "dangerous" occupations like coal mining and military combat service. Such a law would likely reduce women's wages because:

a.women would be less likely to obtain college degrees.

b.comparable worth would no longer exist between men's and women's occupations.

c.labor supply in female-intensive occupations would increase.

d.women would be overqualified for "non-dangerous" jobs.

37)The Utah Pie case was brought under which of the following laws?

a.The Celler-Kefauver Act.

b.The Federal Trade Commission Act.

c.The Robinson-Patman Act.

d.The Sherman Antitrust Act.

38) Specialization and trade allow an economy to expand its:

a.production possibilities.

b.absolute advantage.

c.consumption possibilities.

d.technological advantage.

39)In which of the following cases was the firm a natural monopoly at the beginning of the case but no longer a natural monopoly when the case resolved?

a.IBM case

b.Alcoa case

c.Standard Oil case

d.AT&T case

41) If a good causes a negative externality, regulation might take the form of a

a.subsidy.

b.price ceiling.

c.requirement for consumption.

d.tax.

43) A worker's accumulated investment in education, training, experience, and health is called:

a.collective entrepreneurship.

b.human capital.

c.seniority.

d.derived labor demand.

45)If the poverty line in 2017 for a family of four was $24,600, which of the following is correct?

a.The cost of a minimal diet for a family of four was $6.150.

b.Unemployment benefits covered the first $24,600 of lost income.

c.Social security payments for the year totaled a minimum of $24,600 for a family of four.

d.The cost of a minimal diet for a family of four was $4,100

46) The rule of reason refers to the interpretation of the courts that dominant firms should be broken up because of their:

a.market share dominance, regardless of their business practices.

b.average cost pricing, rather than marginal cost pricing.

c.marginal cost pricing, rather than average cost pricing.

d.illegal business practices, not based on their market dominance alone.

47) Which of the following describes a tying contract?

a.The seller of one product requires the buyer to purchase some other product(s).

b.An agreement between a manufacturer and a retailer based on the condition that the retailer is not to carry any rival products of the manufacturer

c.One firm buys the stock of a competing firm.

d.The directors of one company serve on the board of directors of another company in the same industry.

49) If a firm offers quantity discounts or special promotional allowances only to favored distributors and the effect is to substantially lessen competition, then it is in violation of the:

a.Sherman Antitrust Act.

b.Celler-Kefauver Act.

c.Clayton Act.

d.Robinson-Patman Act.