Refer to the above figures. A unit tax of 2 has been levied on a good. Which of the panels depict the effect of the taxes?
A) Panel 1
B) Panel 2
C) Panel 3
D) None of the diagrams reflect the effect of the tax.
Ques. 2A concentration ratio gives
A) the average size of the firms in an industry.
B) the total sales of four or eight of the mid-sized firms in the industry.
C) the percentage of all sales contributed by the four or eight largest firms in the industry.
D) the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry.
Ques. 3The Securities and Exchange Commission and the Federal Aviation Administration are examples of agencies engaged in
A) the regulation of natural monopolies.
B) the regulation of nonmonopolistic industries.
C) social regulation.
D) health and safety regulation.
Ques. 4A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is
A) structurally unemployed.
B) seasonally unemployed.
C) cyclically unemployed.
D) frictionally unemployed.
Ques. 5Which of the following is an example of a measure of labor productivity?
A) Farm workers produce 30 bushels of wheat per worker per day.
B) Autos get 30 gallons to the mile.
C) The growth rate of per capita real GDP is 3.5 percent per year.
D) Wages increase by 3.5 percent per year for 5 years.
Ques. 6An increase in the quantity demanded is shown by
A) a leftward shift of the demand curve.
B) a rightward shift of the demand curve.
C) a movement down along a demand curve.
D) a movement up along a demand curve.
Ques. 7In the absence of government
A) public goods are likely to be overprovided.
B) market failure is less likely to occur.
C) public goods are likely to be underprovided.
D) the free-rider problem is more likely to occur.
Ques. 8Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect
A) the quantity demanded is Q2.
B) a surplus will occur.
C) price to decline until an equilibrium is achieved at P0.
D) consumers to bid against each other for goods and force the price even higher.
Ques. 9The reason the production possibilities curve is bowed outward (concave) is
A) the law of increasing additional cost.
B) that technology is constantly changing.
C) that the number of resources is increasing.
D) that the economy has more capital goods than entrepreneurial effort.
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