 |
| 1 | |
As presented in "How Much for a Life? Try $3 Million to $5 Million," in the interests of safety, the airline industry must: |
| | A) | rely on increase government monitoring. |
| | B) | expect a return to the days of regulation. |
| | C) | expect to make substantial investments in safety. |
| | D) | buy new equipment even if it forces some companies into bankruptcy. |
|
|
|
| 2 | |
As detailed in "The Company We'll Keep," companies of the future will: |
| | A) | rely more on mineral resources. |
| | B) | be more specialized. |
| | C) | have to be much larger than they are today. |
| | D) | enforce one standard throughout their segment of the global economy. |
|
|
|
| 3 | |
As analyzed in "The Chaos at the Core of Prosperity," the evidence for U.S. corporate instability includes all of the following reasons _except:_ |
| | A) | deregulation. |
| | B) | globalization. |
| | C) | changes in technology. |
| | D) | entrepreneurship. |
|
|
|
| 4 | |
According to "Following the Money, but Also the Mind," the aim of the behavioral economists is to: |
| | A) | have their discipline supplant mainstream economics. |
| | B) | keep behavioral economics strictly separate from mainstream economics. |
| | C) | dominate sociology theory. |
| | D) | integrate behavioral economics into mainstream economic theory. |
|
|
|
| 5 | |
According to "Statistics and Even Lore of the Dismal Science," the best place to go for information about economic statistics is: |
| | A) | federal government Web sites. |
| | B) | economic textbooks. |
| | C) | commercial information companies. |
| | D) | local libraries. |
|
|
|
| 6 | |
As stated in "Why You Can't Tell What Things Cost," the inability to determine the real cost of an item can result from: |
| | A) | supply and demand. |
| | B) | the geographical location of the consumer. |
| | C) | added charges, such as shipping and handling. |
| | D) | the income level of the consumer. |
|
|
|
| 7 | |
After New Jersey doubled the tax on cigarettes, as reported in "Smoke Signals," cigarette sales: |
| | A) | increased only among upper-income smokers. |
| | B) | increased slightly among all smoker groups. |
| | C) | decreased slightly. |
| | D) | decreased dramatically. |
|
|
|
| 8 | |
As pointed out in "Entree Economics," the cost of a restaurant meal, in addition to the cost of the raw ingredients, includes all of the following _except:_ |
| | A) | labor. |
| | B) | location. |
| | C) | atmosphere. |
| | D) | overhead. |
|
|
|
| 9 | |
According to "Buying Power by the Hour," market-based pricing embraces all of the following _except:_ |
| | A) | changing the fixed price. |
| | B) | lowering wholesale prices. |
| | C) | voluntary time-in-use programs. |
| | D) | real-time pricing. |
|
|
|
| 10 | |
As the cost of computing approaches zero, as reported in "I Got It Cheaper Than You," there will be: |
| | A) | a drastic decrease in price discrimination. |
| | B) | little change in the amount of price discrimination. |
| | C) | some increase in price discrimination in some industries, matched by decreases in others. |
| | D) | a massive expansion in price discrimination. |
|
|
|
| 11 | |
The "prisoner's dilemma," as discussed in "The Law as the Free Market's Rogue: Hostage to the Prisoner's Dilemma," is the question of whether or not to: |
| | A) | hang tough even though there is the chance that an accomplice will confess. |
| | B) | hire legal services. |
| | C) | coordinate strategies with an accomplice. |
| | D) | settle differences out of court. |
|
|
|
| 12 | |
According to "The New Economy's `Network Society' Plays by Old-Economy Rules," the Internet has had the effect of: |
| | A) | bringing the old economy to an end. |
| | B) | eliminating economies of scale. |
| | C) | changing the rules of economics. |
| | D) | bringing back standardization. |
|
|
|
| 13 | |
As detailed in "The Core of the Problem: Three Hard Years Push West Michigan Apple Growers Out of the Business," the factors that have adversely affected apple growers in West Michigan include all of the following _except:_ |
| | A) | bad weather. |
| | B) | overproduction. |
| | C) | lack of production. |
| | D) | rock-bottom prices from foreign competition. |
|
|
|
| 14 | |
Problems of the furniture industry, as detailed in "Ever Wonder Why Furniture Shopping Can Be Such a Pain??", include: |
| | A) | low investment in technology and poor marketing. |
| | B) | domination by two giant firms. |
| | C) | shortage of choice hardwoods and new fabrics. |
| | D) | rapidly changing tastes of American consumers. |
|
|
|
| 15 | |
As detailed in ""Regional Differences in the Economic Impact of Wal-Mart," Wal-Mart became enormously successful by: |
| | A) | locating its stores in large cities. |
| | B) | locating its stores in small, rural towns. |
| | C) | directing its marketing approach toward the urban dweller. |
| | D) | partnering with local enterprises. |
|
|
|
| 16 | |
As asserted in "How Burger King Got Burned in Quest to Make the Perfect Fry," Burger King's new french fry was: |
| | A) | wildly successful with consumers, but too expensive. |
| | B) | a fast-food fiasco. |
| | C) | only moderately successful. |
| | D) | the victim of weak marketing efforts. |
|
|
|
| 17 | |
As detailed in "The Joys of Oligopoly," the latest airline-merger plans of American and United are an effort to: |
| | A) | eliminate all competition. |
| | B) | keep foreign-owned airlines out of the U.S. market. |
| | C) | create a tight oligopoly of national networks. |
| | D) | attract new investors. |
|
|
|
| 18 | |
As described in "The UK Package Holiday Industry," individual firms must: |
| | A) | consider what American vacation packagers are doing. |
| | B) | follow numerous domestic and international regulations. |
| | C) | operate without regard to the actions of competitors. |
| | D) | consider the effect of their actions on rival suppliers. |
|
|
|
| 19 | |
Deregulation of the electricity industry, as reported in "Electricity Deregulation and the Consumer," would benefit the ordinary household consumer in all of the following ways _except_ to: |
| | A) | provide choices. |
| | B) | tailor a service package suited to individual needs. |
| | C) | require that electricity be bought from the closest regional distributor. |
| | D) | find the best price. |
|
|
|
| 20 | |
As explained in "OPEC and the Voice of Doom," one important effect of high oil prices is that they: |
| | A) | can fuel inflation in consuming economies. |
| | B) | do not benefit non-OPEC oil producers. |
| | C) | impact developed more than emerging economies. |
| | D) | concentrate world wealth in the volatile Middle East. |
|
|
|
| 21 | |
According to "Phoning Long Distance Is No Longer Such a Deal," long-distance phone bills have been: |
| | A) | continuing to drop as local rates fall. |
| | B) | continuing to drop as local rates rise. |
| | C) | very stable. |
| | D) | getting more expensive with little or no warning from the telephone companies. |
|
|
|
| 22 | |
According to "As Mergers Get Bigger, So Does the Danger," mergers: |
| | A) | are invariably good for the consumer. |
| | B) | should be carefully regulated from within the business community. |
| | C) | are decreasing as interest rates fluctuate. |
| | D) | lead to business concentration that sometimes is bad for competition and innovation. |
|
|
|
| 23 | |
The author of "Patent Medicine" believes that the high cost of prescription drugs is due to the: |
| | A) | federal regulations governing drug approvals. |
| | B) | efforts of pharmaceutical companies to achieve excessive profits. |
| | C) | protection conferred by the patent system. |
| | D) | rarity of the expensive substances used in drugs. |
|
|
|
| 24 | |
As summarized in "Downsized & Out? Job Security and American Workers," media attention and some dramatic downsizings have created the perception that: |
| | A) | most layoffs are among senior management. |
| | B) | layoffs are concentrated among blue-collar workers. |
| | C) | layoffs of junior employees have put a premium on company loyalty. |
| | D) | layoffs of senior workers at all skill levels have seriously eroded the prospects for job security. |
|
|
|
| 25 | |
As stated in "Tight Job Market Pinches Temporary-Help Firms," the outsourcing industry's struggle to attract workers is a result of: |
| | A) | the extremely low pay offered for temporary jobs. |
| | B) | a shrinking pool of entry-level workers. |
| | C) | the low U.S. unemployment rate. |
| | D) | the unwillingness of displaced workers to take another job. |
|
|
|
| 26 | |
According to the author of "Where Supply and Demand Meets Wages and Myth," the main reason for the increasing gap between first-job wages of college and high-school graduates is that: |
| | A) | college graduates are receiving much higher wages than in the past. |
| | B) | there is a shortage of college graduates, so businesses compete for their services. |
| | C) | immigrant workers have filled many of the jobs previously held by high-school graduates. |
| | D) | the starting pay for high-school graduates has declined. |
|
|
|
| 27 | |
As stated in "Debating the Minimum Wage," the traditional view of economists was that a compulsory minimum wage, set substantially above the wage floor in an unregulated labor market, would: |
| | A) | increase employment. |
| | B) | increase unemployment. |
| | C) | raise per-capita income. |
| | D) | help male workers more than female workers. |
|
|
|
| 28 | |
According to "Homemaker as Worker in the United States," since industrial expansion began in the early nineteenth century, American women have worked outside the home: |
| | A) | mostly in the mid-nineteenth century. |
| | B) | primarily since World War II. |
| | C) | far more than is realized. |
| | D) | much less than is usually claimed. |
|
|
|
| 29 | |
Conclusions reached about immigrants in "Immigrants Fill Critical Gap in Wide-Open Job Market" include that they: |
| | A) | come to America looking for charity. |
| | B) | contribute to decline in inner cities. |
| | C) | are a drain on the American economy. |
| | D) | come to America ready to work. |
|
|
|
| 30 | |
As stated in "Union Membership Hits Low Point," the percentage of unionized American workers is now at its lowest level: |
| | A) | in 20 years. |
| | B) | since the end of the Vietnam War. |
| | C) | since the mid-1950s. |
| | D) | in six decades. |
|
|
|
| 31 | |
According to "New Unions for a New Economy," to succeed, labor unions need to focus on policies that emphasize: |
| | A) | the service sector of the economy. |
| | B) | international mobility of jobs. |
| | C) | quality. |
| | D) | unity. |
|
|
|
| 32 | |
The author of "Building Prosperity From the Bottom Up," who is assistant director of public policy for the AFL-CIO, believes that raising the minimum wage: |
| | A) | is an opportunity to shape a new economic strategy based on prosperity at the bottom of the economic pyramid. |
| | B) | continues the successful policy of trickle-down economics in place since the 1980s. |
| | C) | is a proper response within the demand-and-supply economic model. |
| | D) | will increase inequities in the wage structure. |
|
|
|
| 33 | |
According to "Worker Capitalists? Giving Employees an Ownership Stake," the idea of employee ownership of firms: |
| | A) | has little popular appeal. |
| | B) | is detrimental to corporate morale. |
| | C) | has few measurable benefits. |
| | D) | is popular in the bull market. |
|
|
|
| 34 | |
As noted in "Workers De-Compensation: Benefits Evaporate for Repetitive Stress Sufferers," workers afflicted with repetitive strain injury (RSI) are more likely to be denied insurance benefits because this type of injury: |
| | A) | does not disable a worker. |
| | B) | is difficult to prove. |
| | C) | is not painful. |
| | D) | can easily be healed with rest. |
|
|
|
| 35 | |
As pointed out in "Everything for Sale," a mixed economy, which combines competition with government regulation, is necessary in al the following industries [except]: |
| | A) | telecommunications. |
| | B) | electric power. |
| | C) | fashion. |
| | D) | health care. |
|
|
|
| 36 | |
The cost of compliance with government regulations, as stated in "Staking Out the High Ground on Government Regulation of Business," falls mainly on the consumer in the form of: |
| | A) | higher prices. |
| | B) | an income tax. |
| | C) | a sales tax. |
| | D) | a special paycheck deduction. |
|
|
|
| 37 | |
The expectation, as detailed in "Cable Rates Rising as Industry Nears End of Regulation," was that deregulation of the cable-television industry would: |
| | A) | result in competition driving prices down. |
| | B) | allow cable-television companies to increase their profits dramatically. |
| | C) | result in expanded public access to community channels. |
| | D) | allow racial and ethnic minorities to enter the cable-television industry as owners. |
|
|
|
| 38 | |
According to "Can Antitrust Keep Up? Competition Policy in High-Tech Markets," the core issue of the federal government's antitrust suit against Microsoft is: |
| | A) | the amount of Microsoft's profits. |
| | B) | Microsoft's aggressive business tactics. |
| | C) | the relevance of antitrust to high technology. |
| | D) | government antipathy towards Microsoft founder Bill Gates. |
|
|
|
| 39 | |
As defined in "The Real Price of Gas," the most comprehensive term for describing the expenses that are not reflected in the retail price of gasoline would be: |
| | A) | tariffs. |
| | B) | external costs. |
| | C) | tax subsidies. |
| | D) | program subsidies. |
|
|
|
| 40 | |
According to "Making Green Policies Pay Off: Responsible Climate-Change Package Can Benefit Environment, Workforce," policies to reduce carbon emissions: |
| | A) | will likely have little effect on pollution. |
| | B) | are not yet demonstrably necessary. |
| | C) | will displace millions of workers. |
| | D) | can bring benefits to most of the economy. |
|
|
|
| 41 | |
According to "Travelers Benefit from Airline Deregulation," the federal government deregulated the airline industry because: |
| | A) | foreign carriers were taking away too much business from American carriers. |
| | B) | the number of people flying on commercial flights had dropped sharply. |
| | C) | fares were too high in many markets, the industry was inefficient, and regulation had inhibited growth. |
| | D) | the airlines were losing money because of government regulations. |
|
|
|
| 42 | |
The century-old debate on antitrust law and the free market, according to "How the Antitrust Wars Wax and Wane," most recently has focused on: |
| | A) | oligopolies in the American economy. |
| | B) | the computer industry. |
| | C) | predatory pricing. |
| | D) | revising the Sherman Antitrust Act of 1890. |
|
|
|
| 43 | |
The most preferred life-style for Americans, as identified in "Prove It: The Costs and Benefits of Sprawl," is: |
| | A) | urban. |
| | B) | small town. |
| | C) | sprawl. |
| | D) | rural. |
|
|
|
| 44 | |
Originally, as presented in ""Does Prison Pay?" Revisited: Returning to the Crime Scene," the type of study undertaken to determine the cost-effectiveness of prison systems was that of: |
| | A) | A random sampling of prisoners. |
| | B) | cost-benefit analysis. |
| | C) | A empirical data analysis. |
| | D) | A random sampling of management. |
|
|
|
| 45 | |
As reported in "Congested Parks--A Pricing Dilemma," the best solution to counter the degradation of parks due to overuse is: |
| | A) | limiting the number of people allowed in at one time. |
| | B) | limiting use to specific periods of time. |
| | C) | raising entrance fees. |
| | D) | closing some parks for several years at a time. |
|
|
|
| 46 | |
As noted in "Drug Legalization? Time for a Real Debate" a survey of American secondary-school students shows that: |
| | A) | drug use is declining. |
| | B) | students are using drugs only in the upper grades. |
| | C) | few students view drug use as an important issue. |
| | D) | drug use is increasing again. |
|
|
|
| 47 | |
As stated in "A New Medicare for the New Economy," Medicare: |
| | A) | needs only a little tinkering to be fixed. |
| | B) | requires a major overhaul. |
| | C) | should be privatized. |
| | D) | must be ended and a new system installed. |
|
|
|
| 48 | |
As described in "The Free Market for Clean Air," the most developed pollution trading market is in: |
| | A) | particulates. |
| | B) | sulfur dioxide. |
| | C) | nuclear power emissions. |
| | D) | chlorofluorocarbons (CFCs). |
|
|
|
| 49 | |
According to "How Uncle Sam Could Ease the Organ Shortage," the only way to abolish the need to decide who most deserves transplants is to: |
| | A) | increase the supply of organs. |
| | B) | put the organ transplant program under federal control. |
| | C) | place patients on a first-come-first-served basis. |
| | D) | make organ donation mandatory. |
|
|
|
| 50 | |
During the 1980s and 1990s, as recounted in "Growing American Inequality: Sources and Remedies," income disparity increased the most between the: |
| | A) | middle class and the nonworking poor. |
| | B) | wealthy and the middle class. |
| | C) | middle class and the working poor. |
| | D) | wealthy and the poor. |
|
|
|
| 51 | |
According to "Inequality in the United States," income inequality has: |
| | A) | increased dramatically during the 1990s. |
| | B) | declined during the 1990s. |
| | C) | been increasing since 1968. |
| | D) | followed the business cycle for the last 50 years. |
|
|
|
| 52 | |
In "The Victimless Income Gap?" Robert H. Frank expresses concern over the growing gap between the incomes of: |
| | A) | retirees and young workers. |
| | B) | men and women. |
| | C) | members of various ethnic groups. |
| | D) | the wealthy and the middle class. |
|
|
|
| 53 | |
Poverty in the United States, as discussed in "The State of the Poor," is defined by: |
| | A) | starvation. |
| | B) | outbreaks of disease. |
| | C) | the number of deprivations. |
| | D) | the number of family members. |
|
|
|
| 54 | |
The social group that the author of "The `Undeserving Poor' Deserve More Help" believes should be targeted for help, but whose needs are now effectively ignored, are: |
| | A) | single parents. |
| | B) | the mentally disabled. |
| | C) | senior citizens. |
| | D) | able-bodied adults without dependents. |
|
|
|
| 55 | |
According to "Without a Net: Whom the New Welfare Law Helps and Hurts," the impact of welfare reform: |
| | A) | has been more negative than anyone foresaw. |
| | B) | was to increase starvation among children. |
| | C) | is impossible to measure in any meaningful way. |
| | D) | has been to shrink welfare rolls. |
|
|
|
| 56 | |
As noted in "Corporate Welfare Remains Unchecked," during the recent round of budget cuts, corporate welfare was: |
| | A) | cut in half. |
| | B) | considered untouchable. |
| | C) | increased. |
| | D) | raised by the Republicans and cut by President Bill Clinton. |
|
|
|
| 57 | |
As discussed in "How to Slip Out of America's Housing Squeeze," proposals to increase the supply of affordable housing include all of the following _except:_ |
| | A) | encouraging employers to offer employees subsidized housing. |
| | B) | instituting a tax on existing homeowners, with the proceeds going towards new affordable housing. |
| | C) | new government incentives for developers that build low-income housing. |
| | D) | housing vouchers that would be good anywhere in the country. |
|
|
|
| 58 | |
The authors of "Should We Retire Social Security?" conclude about Social Security that: |
| | A) | no serious reform is possible. |
| | B) | the current system must be replaced. |
| | C) | all proposals will decrease administrative efficiency. |
| | D) | all plans described would restore financial balance to the nation's basic retirement system. |
|
|
|
| 59 | |
As reported in "Equality in Hiring Remains the Key to Civil Rights Goals," since the passage of the Civil Rights Act of 1964, discrimination has: |
| | A) | been eliminated in most hiring situations. |
| | B) | become even more widespread. |
| | C) | taken on more subtle forms. |
| | D) | not been addressed as the law requires. |
|
|
.