---------------------------------------------------------------------------------------------------------------------------------------------------------------- 1. The supply curve for a monopoly is 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 to (Points: 3) reduced 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? (Points: 3) open competition shared competition monopsony shared monopoly monopolistic competition 4. The relatively high salaries paid to professional athletes reflect (Points: 3) 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 (Points: 3) 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 (Points: 3) the exchange rate the international trade rate tariff a balance of trade account a capital account 7. Leakages in the circular flow consist of (Points: 3) savings, 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 (Points: 3) structural unemployment cyclical unemployment underemployment frictional unemployment seasonal unemployment 9. Inflation is most likely to benefit (Points: 3) 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 curing (Points: 3) shortages 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 the (Points: 3) 1920s 1950s 1970s 1980s 1990s 12. The size of government is growing at (Points: 3) 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? (Points: 3) 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 (Points: 3) social security entitlement programs private insurance programs welfare programs transfer programs 15. Current projections estimate that the Social Security Trust Fund will be depleted (Points: 3) 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. (Points: 3) True False17. Barriers to entry are often created by governments. (Points: 3) True False18. Professional sports leagues are both cartels and monopsonies. (Points: 3) True False19. The “civic pride� enjoyed by a major league city has no economic value. (Points: 3) True False20. The euro will increase the transaction costs of trade between nations who are members of the European Union (EU). (Points: 3) True False21. Today, custom unions or free trade zones can be found on every populated continent of the world. (Points: 3) True False22. Unemployment will increase if the minimum wage increases. (Points: 3) True False23. An increase in the money supply increases aggregate demand. (Points: 3)Yes, I am nor a liar!

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