The imposition of a unit excise tax on beer will :

The imposition of a unit excise tax on beer will
 
  A) lower equilibrium price and quantity in the market.
  B) increase equilibrium quantity and price in the market.
  C) lower equilibrium quantity and raise equilibrium price in the market.
  D) raise equilibrium quantity and lower equilibrium price in the market.

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Ques. 2

The combining of First Union National Bank and The National Bank of Memphis is an example of
 
  A) a vertical merger.
  B) a horizontal merger.
  C) a downstream formation.
  D) a conglomerate merger.

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Ques. 3

What would lead an economist to conclude that Theory A is superior to Theory B?
 
  A) Theory A predicts real-world events better than does Theory B.
  B) The assumptions underlying Theory A are more realistic than are the assumptions underlying Theory B.
  C) Theory A explains how people think, whereas Theory B only explains what they do.
  D) Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interest and acts accordingly.

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Ques. 4

Price floors
 
  A) provide free market incentives for producers.
  B) create surpluses by setting the price above equilibrium.
  C) create shortages by setting the price above equilibrium.
  D) are used by advocates of the free market.

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Ques. 5

Which of the following equations is correct?
 
  A) rate of growth of per capita real GDP = rate of growth in real GDP - rate of growth of population
  B) rate of growth of per capita real GDP = rate of growth in real GDP + rate of growth of population
  C) rate of growth in real GDP = rate of growth of per capita real GDP - rate of growth of population
  D) rate of growth in real GDP = rate of growth of per capita real GDP + rate of growth of population

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Ques. 6

If a decrease in the price of good A causes a decrease in demand for good B, the two goods are
 
  A) substitutes.
  B) complements.
  C) normal.
  D) inferior.

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Ques. 7

Annie had a job as a human resource manager of a restaurant chain that went out of business due to a downturn in the economy.
 
  She looked for work for six months and gave up because she was convinced that she could not find a suitable job to fit her skill set. In this instance she would be counted as a A) job leaver.
  B) reentrant.
  C) discouraged worker.
  D) labor force participant.