1. The supply curve for a monopolyis the marginal revenue curve * is the marginal cost curve is the total revenue curve is the total cost curve does not exist 2. Monopolization of a previously competitive market leads toreduced production and product quality and increased costs and prices * increased production and higher prices increased production, product quality and prices all of the above none of the above 3. Which of the following best characterizes a cartel arrangement? open competition shared competition monopsony * shared monopoly monopolistic competition 4. The relatively high salaries paid to professional athletes reflect their contribution to team revenue *the exploitation of fans their contribution to society’s general well-being. the success of labor union representation the social value of professional sports 5. A country has a comparative advantage in the production of any good that it can produce at a lower absolute cost than can other countries with less labor than can other countries with a smaller sacrifice of some alternative good or service than can other countries *for export all of the above 6. The price of one nation’s currency in terms of another is called *the exchange rate the international trade rate tariff a balance of trade account a capital account 7. Leakages in the circular flow consist ofsavings, taxes, and exports *savings, investment, and exports government spending, investment, and exports savings, taxes, and imports investment, taxes, and imports 8. An automobile factory worker unemployed because a robot now has his job is a victim of *structural unemployment cyclical unemployment underemployment frictional unemployment seasonal unemployment 9. Inflation is most likely to benefit*savings bank depositors debtors life insurance policyholders persons living on fixed pensions creditors 10. Decreasing excess reserves in the banking system is a means of curingshortages *demand-pull inflation profit-push inflation unemployment none of the above 11. The longest sustained period of economic growth in modern U.S. history occurred during the1920s 1950s 1970s 1980s *1990s 12. The size of government is growing at a slower rate than the economy approximately the same rate as the rest of the economy *a faster rate than the rest of the economy none of the above all of the above 13. Which of the following is an example of a collective good or service? a public highway free cheese offered by the government food stamps *social security automobiles 14. The largest social insurance program in the United States is *social security entitlement programs private insurance programs welfare programs transfer programs 15. Current projections estimate that the Social Security Trust Fund will be depleted around 2010 around 2015 around 2020 *around 2040 around 2200 16. Profits serve no useful purpose in a private enterprise economy and should be taxed away by the government. True* False17. Barriers to entry are often created by governments. True* False18. Professional sports leagues are both cartels and monopsonies. *TrueFalse19. The “civic pride� enjoyed by a major league city has no economic value. True* False20. The euro will increase the transaction costs of trade between nations who are members of the European Union (EU). True*False21. Today, custom unions or free trade zones can be found on every populated continent of the world. *TrueFalse22. Unemployment will increase if the minimum wage increases. 3)True* False23. An increase in the money supply increases aggregate demand. *TrueFalse24. The annual growth rate in the money supply has been held constant by the Federal Reserve. True* False25. The discount rate is the ratio of demand deposits to reserves that banks have to maintain. True* False26. The U.S. government spends less than 1% of GDP on research and development each year. True* False

number 7 is wrongit should beimports (if you import from abroad money goes out the country)savingsand taxes