1. Which of the following is an example of a monopolisticallycompetitive industry?

	A.	wheat farming
	B.	colleges and universities
	C.	the domestic auto industry
	D.	the local electricity producer

2. In game theory a choice that is optimal for a firm no matter what its competitors do is referred to as

	A.	the pay off
	B.	super optimal
	C.	the equilibrium of the game
	D.	the dominant strategy

3. After graduating, you have decided to accept a position working at the Bureau of Labor Statistics for $ 33,000 a year. The other offers you received were for $ 22,000, $ 28,000, $ 19,000. What is the opportunity cost of accepting the position at the Bureau of Labor Statistics?

	A.	$ 28,000
	B.	$ 22,000
	C.	$ 19,000
	D.	$ 69,000

4. Diminishing marginal utility means that

	A.	the utility from one hamburger is greater that the utility from two hamburgers
	B.	Ralph will enjoy his secondhamburger less than the first one
	C.	the utility from eating two hamburgers will be more than twice the utility from eating the first one
	D.	the price of two hamburgers is less than twice the price of one

5. Which of the following will not increase the demand for hotdogs (i.e. shift the demand curve to the right)

	A.	An increase in price of hamburgers which are a substitute to hotdogs
	B.	An expectation of a decline in the price of hotdogs in the future
	C.	A decrease in the price of a complement such as hotdog buns
	D.	The price of hotdogs falls

6. The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by:

	A.	A demand curve
	B.	A production possibility curve
	C.	A budget line
	D.	An indifference curve

7. A monopolistically competitive industry combines elements of both pure competition and monopoly. What makes this firm have some elements of monopoly?

	A.	The likelihood of collusion
	B.	Product differentiation
	C.	Mutual interdependence in decision making
	D.	High entry barriers

8. Who is primarily responsible for making economic decisions in a market economy?

	A.	big business
	B.	market regulators
	C.	individuals
	D.	the central government

9. An increase in the price of apples would lead to

	A.	A shift in the supply curve of apples
	B.	An increased demand for oranges
	C.	An increased supply of apples
	D.	A reduction in the price of inputs used in orange production

10. If price elasticity of demand for a good is 4.0, then a 10 percent increase in price would result in a

	A.	4.0 percent decrease in the quantity demanded
	B.	10 percent decrease in the quantity demanded
	C.	40 percent decrease in quantity demanded
	D.	400 percent decrease in the quantity demanded

11. The invisible hand works to promote general well being in the economy primarily through

	A.	Self interest
	B.	Altruism
	C.	Government intervention
	D.	The political process

12. Which of the following is true about a monopoly

	A.	A monopoly firm us a price maker and has no supply curve
	B.	A monopoly firms is a price maker and has a downward sloping supply curve
	C.	A monopoly firm is a price maker and has an upward sloping supply curve.
	D.	A monopoly firm is a price taker and has no supply curve