Archive for May 2016

A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination. If the government imposes a tax of $1 per unit of goods sold by the monopolist, the monopolist will increase his price by more than $1 per unit.

A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand lower than -1, and does not practice price discrimination. If the government imposes a tax of $1 per unit of goods sold by the monopolist, the monopolist will increase his price by more than $1 per unit.




Answer: True

The market for a good is in equilibrium when the government unexpectedly imposes a quantity tax of $2 per unit. In the short run, the price will rise by $2 per unit so that firms can regain their lost revenue and continue to produce.

The market for a good is in equilibrium when the government unexpectedly imposes a quantity tax of $2 per unit. In the short run, the price will rise by $2 per unit so that firms can regain their lost revenue and continue to produce.




Answer: False

A competitive firm has a continuous marginal cost curve. It finds that as output increases, its marginal cost curve first rises, then falls, then rises again. If it wants to maximize profits, the firm should never produce at a positive output where price equals marginal cost and marginal cost decreases as output increases.

A competitive firm has a continuous marginal cost curve. It finds that as output increases, its marginal cost curve first rises, then falls, then rises again. If it wants to maximize profits, the firm should never produce at a positive output where price equals marginal cost and marginal cost decreases as output increases.




Answer: True

A firm uses a single variable input x to produce outputs according to the production function f (x) = 300x + 6x^2. This firm has fixed costs of $400. This firm's short-run marginal cost curve lies below its short-run average variable cost curve for all positive values of x.

A firm uses a single variable input x to produce outputs according to the production function f (x) = 300x + 6x^2. This firm has fixed costs of $400. This firm's short-run marginal cost curve lies below its short-run average variable cost curve for all positive values of x.




Answer: True

A competitive, cost-minimizing firm has the production function f (x,y) = x + 2y and uses positive amounts of both inputs. If the price of x doubles and the price of y triples, then the cost of production will more than double.

A competitive, cost-minimizing firm has the production function f (x,y) = x + 2y and uses positive amounts of both inputs. If the price of x doubles and the price of y triples, then the cost of production will more than double.



Answer: False

A firm produces one output with one input and has decreasing returns to scale. The price that it pays per unit of input and the price it gets per unit of output are independent of the amount that this firm buys or sells. If the government taxes its net profits at some percentage rate and subsidizes its inputs at the same percentage rate, the firm's profit-maximizing output will not change.

A firm produces one output with one input and has decreasing returns to scale. The price that it pays per unit of input and the price it gets per unit of output are independent of the amount that this firm buys or sells. If the government taxes its net profits at some percentage rate and subsidizes its inputs at the same percentage rate, the firm's profit-maximizing output will not change.




Answer: False

Fiery Demon is a rotgut whisky made in Kentucky. Smoothly is an unblended malt whisky imported from Scotland. Ed regards these brands as perfect substitutes. When he goes into a bar, he sometimes buys only Fiery Demon. Other times he buys only Smoothly. This shows that Ed has unstable preferences.

Fiery Demon is a rotgut whisky made in Kentucky. Smoothly is an unblended malt whisky imported from Scotland. Ed regards these brands as perfect substitutes. When he goes into a bar, he sometimes buys only Fiery Demon. Other times he buys only Smoothly. This shows that Ed has unstable preferences.



Answer: False

If the elasticity of demand curve for buckwheat is -1.25 at all prices higher than the current price, we would expect that when bad weather reduces the size of the buckwheat crop, total revenue of buckwheat producers will fall.

If the elasticity of demand curve for buckwheat is -1.25 at all prices higher than the current price, we would expect that when bad weather reduces the size of the buckwheat crop, total revenue of buckwheat producers will fall.



Answer: False

If Melody has more classical records than rock and roll records, she is willing to exchange exactly 1 classical record for 2 rock and roll records, but if she has more rock and roll records than classical records, then she is willing to exchange exactly 1 rock and roll record for 2 classical records. Melody has convex preferences.

If Melody has more classical records than rock and roll records, she is willing to exchange exactly 1 classical record for 2 rock and roll records, but if she has more rock and roll records than classical records, then she is willing to exchange exactly 1 rock and roll record for 2 classical records. Melody has convex preferences.



Answer: False

An airline has exclusive landing rights at the local airport. The airline flies one flight per day to New York with a plane that has a seating capacity of 100. The cost of flying the plane per day is $4,000 + 10 q, where q is the number of passengers. The number of tickets to New York demanded is q = 165 - 0.5p. If the airline maximizes its monopoly profits, the difference between the marginal cost of flying an extra passenger and the amount of the marginal passenger is willing to pay to fly to New York is:

An airline has exclusive landing rights at the local airport. The airline flies one flight per day to New York with a plane that has a seating capacity of 100. The cost of flying the plane per day is $4,000 + 10 q, where q is the number of passengers. The number of tickets to New York demanded is q = 165 - 0.5p. If the airline maximizes its monopoly profits, the difference between the marginal cost of flying an extra passenger and the amount of the marginal passenger is willing to pay to fly to New York is:




Answer: $160.

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.

A monopolistic receives a subsidy from the government for every unit of output that is consume. He has constant marginal costs and the subsidy that he gets per unit of output is greater than his marginal cost of production. But to get the subsidy on a unity of output, somebody has to consume it.




Answer: If he sells at a positive price, demand must be inelastic at that price.

Imagine first a drug dealer working in a competitive market with a constraint marginal cost for producing marijuana of $6/oz. Suppose now that government authorities decided to seize the marijuana production whenever they find it. The production of marijuana is seized with a probability of 50%. If the production is seized, there is no other punishment besides loss of the marijuana. What happens to the new equilibrium prices with the new government's policy?

Imagine first a drug dealer working in a competitive market with a constraint marginal cost for producing marijuana of $6/oz. Suppose now that government authorities decided to seize the marijuana production whenever they find it. The production of marijuana is seized with a probability of 50%. If the production is seized, there is no other punishment besides loss of the marijuana. What happens to the new equilibrium prices with the new government's policy?




Answer: the equilibrium price increases by $6.

A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?

A competitive firm uses two variable factors to produce its output, with a production function q = min {x,y}. The price factor x is $8 and the price of factor y is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x. In addition to the costs of inputs, the firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no output. What is the smallest integer price that would make a firm willing to produce a positive amount?



Answer: $21.

The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is:

The production function of a competitive firm is described by the equation q = 4x^1/2y^1/2. The factor prices are Px = $1 and Py = $36 and the firm can hire as much of either factor it wants at these prices. The firm's marginal cost is:




Answer: constant and equal to 3.

As assistant vice president in charge of production for a computer firm, you are asked to calculate the cost of producing 170 computers. The production function is q = min{x, y} where x and y are the amounts of two factors used. The price of x is $18 and the price of y is $10. What is your answer?

As assistant vice president in charge of production for a computer firm, you are asked to calculate the cost of producing 170 computers. The production function is q = min{x, y} where x and y are the amounts of two factors used. The price of x is $18 and the price of y is $10. What is your answer?



Answer: $4,760.

A firm has a fixed costs of $2,000. Its short-run production function is y = 4x^1/2, where x is the amount of variable factor it uses. The price of the variable factor is $1,600 per unit. Where y is the amount of output, the short-run total cost function is

A firm has a fixed costs of $2,000. Its short-run production function is y = 4x^1/2, where x is the amount of variable factor it uses. The price of the variable factor is $1,600 per unit. Where y is the amount of output, the short-run total cost function is




Answer: 2,000 + 100y^2.

At a large institution of higher learning, the demand for football tickets at each game is t (p) = 100,000 - 8,000p. If the capacity of the stadium at the university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?

At a large institution of higher learning, the demand for football tickets at each game is t (p) = 100,000 - 8,000p. If the capacity of the stadium at the university is 60,000 seats, what is the revenue-maximizing price for this university to charge per ticket?




Answer: $6.25

Ambrose's brother Sebastian has a utility function U (x1, x2) =28x1^1/2 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries. His income is $128, the price of nuts is $2, and the price of berries is $1. How many units of berries will Sebastian demand?

Ambrose's brother Sebastian has a utility function U (x1, x2) =28x1^1/2 + x2, where x1 is his consumption of nuts and x2 is his consumption of berries. His income is $128, the price of nuts is $2, and the price of berries is $1. How many units of berries will Sebastian demand?





Answer: 30

Isabella's utility function is U (x, y) = 4 min{x, y} + y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis, these indifference curves are:

Isabella's utility function is U (x, y) = 4 min{x, y} + y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis, these indifference curves are:





Answer: Made up of two line segments that meet where x = y. One of these line segments is horizontal and the other has slope -4.

The inverse demand function for grapes is described by the equation p = 676 - 9p, where p is the price in dollars per crate and q is the number of crates of grapes demanded per week. When p = 28 per crate, what is the price elasticity of demand for grapes?

The inverse demand function for grapes is described by the equation p = 676 - 9p, where p is the price in dollars per crate and q is the number of crates of grapes demanded per week. When p = 28 per crate, what is the price elasticity of demand for grapes?





Answer: -28/648.

Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of

Reginald is fond of cigars. His utility function is U (x, c) = x + 10c - 0.5c^2, where c is the number of cigars he smokes per week and x is the money that he spends on the consumption of other goods. Reginald has $200 a week to spend. Cigars used to cost him $1 each, but their price went up to $2 each. This price was as bad for him as losing income of




Answer: $8.50.

Katie Kwasi's utility function is U (x1, x2) = 2(lnx1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?

Katie Kwasi's utility function is U (x1, x2) = 2(lnx1) + x2. Given her current income and the current relative prices, she consumes 10 units of x1 and 15 units of x2. If her income doubles, while prices stay constant, how many units of x1 will she consume after the change in income?





Answer: 10.

Ms. Laura Mussel's preferences between gold and tennis are represented by U (g, t) = gt, where g is the number of rounds of gold and t is the number of tennis matches she plays per week. She has $24 per week to spend on these sports. A round of gold and a tennis match each cost $4. She used to maximize her utility subject to this budget. She decided to limit the time she spends on these sports to 16 hours a week. A round of golf takes 4 hours. A tennis match takes 2 hours. As a result of this additional constraint on her choice

Ms. Laura Mussel's preferences between gold and tennis are represented by U (g, t) = gt, where g is the number of rounds of gold and t is the number of tennis matches she plays per week. She has $24 per week to spend on these sports. A round of gold and a tennis match each cost $4. She used to maximize her utility subject to this budget. She decided to limit the time she spends on these sports to 16 hours a week. A round of golf takes 4 hours. A tennis match takes 2 hours. As a result of this additional constraint on her choice




Answer: she plays 1 less round of golf and 1 more tennis match each week.

Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?

Mary Granola consumes tomatoes and nectarines. Mary's indifference curves are kinky. When she is consuming more tomatoes than nectarines, she is willing to trade 3 tomatoes for 1 nectarine. When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato. Let P1, be the price of nectarines, and P2 the price of tomatoes. Mary maximizes her utility subject to the budget constraint. Which statement is true?





Answer: When P1 > 3P2, she must consume only tomatoes.

If we graph Mary Granola indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indifference curve is -2. Whenever she has more avocados than grapefruits, the slope is -1/2. Mary would be indifferent between a bundle with 23 avocados and 29 grapefruits and another bundle with 31 avocados.

If we graph Mary Granola indifference curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indifference curve is -2. Whenever she has more avocados than grapefruits, the slope is -1/2. Mary would be indifferent between a bundle with 23 avocados and 29 grapefruits and another bundle with 31 avocados.




Answer: 22 grapefruits

Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (9, 19)?

Ambrose has indifference curves represented by the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (9, 19)?




Answer: -0.67 

In Problem 2, Ambrose has indifference curves with the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (16, 10)?

In Problem 2, Ambrose has indifference curves with the equation x2 = constant - 4x1^1/2, where larger constants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (16, 10)?




Answer: -0.50.

The curvature of an economy's production possibilities curve represents:

The curvature of an economy's production possibilities curve represents:




a.an increasing marginal cost of producing both goods.
b.increasing terms of trade between both goods.
c.diminishing marginal returns to inputs.
d.an increasing opportunity cost of producing each good.



Answer: D

If prices are held above the equilibrium price:

If prices are held above the equilibrium price:




a.all firms incur losses.
b.there exists a shortage in the market.
c.social surplus is maximized.
d.there exists a surplus in the market.




Answer: D

Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:

Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:




a.sellers of the good will decrease the quantity supplied.
b.sellers of the good will increase the supply of the good at the same price.
c.sellers of the good will decrease the supply of the good at the same price.
d.sellers of the good will increase the quantity of the good supplied in the market.




Answer: D

When existing firms leave a perfectly competitive market, it causes:

When existing firms leave a perfectly competitive market, it causes:




a.a decrease in the profitability of existing firms.
b.a right shift in the demand curve of the good being produced by the firms.
c.a left shift in the demand curve of the good being produced by the firms.
d.an increase in the profitability of existing firms.



Answer: D

When positive economic profits exist in an industry:

When positive economic profits exist in an industry:





a.the market price of the good produced by the industry is less than the marginal cost faced by the industry.
b.the market price of the good produced by the industry is less than the average total cost of the industry.
c.resources flow from less productive uses to that particular industry.
d.there is an exit of firms from the industry.



Answer: C

The entry of new firms into a perfectly competitive market will cause:

The entry of new firms into a perfectly competitive market will cause:




a.both the equilibrium price and quantity to decrease.
b.both the equilibrium price and quantity to increase.
c.the equilibrium price to increase but the equilibrium quantity to decrease.
d.the equilibrium price to decrease but the equilibrium quantity to increase.



Answer: D

If price is greater than the average variable cost, a profit-maximizing firm should:

If price is greater than the average variable cost, a profit-maximizing firm should:





a.expand production until total revenue is equal to total cost.
b.contract production until total revenue is equal to total cost.
c.contract production until price is equal to marginal cost.
d.expand production until price is equal to marginal cost.




Answer: D

Graphically, producer surplus is the:

Graphically, producer surplus is the:




a.difference between the supply curve and the price a consumer pays.
b.product of price of a good and quantity sold.
c.difference between total cost and total revenue.
d.difference between the demand curve and the price a consumer pays.



Answer: A

Willingness to pay:

Willingness to pay:




a.is equal to the price of the lowest-priced goods in a consumption bundle.
b.is the lowest price that a buyer is willing and able to pay for a unit of good.
c.is equal to the price of the highest-priced goods in a consumption bundle.
d.is the highest price that a buyer is willing and able to pay for a unit of good.




Answer: D

If quantity of milk is measured on the horizontal axis and quantity of juice is measured on the vertical axis, a decrease in the price of milk will cause the budget constraint to:

If quantity of milk is measured on the horizontal axis and quantity of juice is measured on the vertical axis, a decrease in the price of milk will cause the budget constraint to:




a.shift to the left.
b.shift to the right.
c.pivot rightward along the horizontal axis.
d.pivot rightward along the vertical axis.



Answer: C

A change in the slope of a budget constraint indicates:

A change in the slope of a budget constraint indicates:




a.a change in the consumer's income.
b.a change in the price of either good without a change in the opportunity cost.
c.a change in the price of either good that causes a change in the opportunity cost.
d.a change in the consumer's tastes and preferences.




Answer: C

An optimizing consumer makes her purchase decisions based on:

An optimizing consumer makes her purchase decisions based on: 




a.the total benefits at various levels of consumption.
b.the benefits from the first dollar spent on consumption.
c.benefits per dollar spent at the margin.
d.the total benefits per dollar spent at various levels of consumption.



Answer: C

A risk‐neutral individual would:

A risk‐neutral individual would: 




A. prefer $5 with certainty to a risky prospect with the expected value of $5.
B. prefer a risky prospect with an expected value of $5 to a certain amount of $5.
C. be indifferent between a risky prospect with an expect value of $5 to a certain amount of $5.
D. prefer a risky prospect with the expected value of $0.50 to $5 with certainty.





Answer: C

Which of the following is a means of eliminating the undesirable effects of adverse selection?

Which of the following is a means of eliminating the undesirable effects of adverse selection? 




A. A long‐term relationship
B. Writing a contract to guarantee the quality of an input to production
C. Both a long‐term relationship and writing a contract to guarantee the quality
D. None of the statements is correct.



Answer: C

If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non‐advertising firm will earn $1 million. Which of the following is true?

If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non‐advertising firm will earn $1 million. Which of the following is true? 




A. A dominant strategy for firm A is to advertise.
B. A dominant strategy for firm B is to advertise.
C. A Nash equilibrium is for both firms to advertise.
D. All of the statements associated with this question are correct.


Answer: D

Which of the following conditions are necessary for the existence of a Nash equilibrium?

Which of the following conditions are necessary for the existence of a Nash equilibrium? 




A. The existence of dominant strategies for both players.
B. The existence of a dominant strategy for one player and the existence of a secure
strategy for another player.
C. The existence of a secure strategy for both players.
D. None of the answers is correct.



Answer: D

Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the price elasticity of demand for the petroleum products sold by your firm is ‐1.5. Based on this information you know that the elasticity of demand for a representative firm in the petroleum industry is

Suppose you read in an industry publication that the Rothschild index for the petroleum industry is 0.88. Based on past experience, you know that the price elasticity of demand for the petroleum products sold by your firm is ‐1.5. Based on this information you know that the elasticity of demand for a representative firm in the petroleum industry is 




A. 1.32.
B. 1.70.
C. ‐0.587.
D. ‐1.32.



Answer: D

Monopolistic competition is characterized by

Monopolistic competition is characterized by 




A. employing labor from a perfectly competitive labor market.
B. Rothschild indices that are close to zero.
C. concentration ratios that are well above zero.
D. differentiated products.



Answer: D

In perfect competition, which is not true?

In perfect competition, which is not true? 




A. Firms produce homogenous goods.
B. There are a large number of firms.
C. Firms are price‐takers.
D. Every firm has a small but perceivable market power.


Answer: D

The long‐run is defined as

The long‐run is defined as 




A. the horizon in which the manager can adjust all factors of production.
B. the horizon in which there are only fixed factors of production.
C. the horizon in which there are both fixed and variable factors of production.
D. greater than one year.


Answer: A

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5%?

You are the manager of a popular hat company. You know that the advertising elasticity of demand for your product is 0.25. How much will you have to increase advertising in order to increase demand by 5%? 




A. 0.05%.
B. 20%.
C. 25%.
D. 1.25%.



Answer: B

When quantity demanded exceeds quantity supplied

When quantity demanded exceeds quantity supplied 




A. there exists a surplus of a good.
B. the price tends to fall.
C. the price is below the equilibrium price.
D. there is no excess demand.



Answer: C

Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of

Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of 




A. producer surplus.
B. price ceilings.
C. full economic prices.
D. consumer surplus.



Answer: D

Suppose you produce wooden desks, and government legislation protecting the spotted owl has made it more expensive for you to purchase wood. What do you expect to happen to the equilibrium price and quantity of wooden desks?

Suppose you produce wooden desks, and government legislation protecting the spotted owl has made it more expensive for you to purchase wood. What do you expect to happen to the equilibrium price and quantity of wooden desks? 




A. Price and quantity will increase.
B. Price will increase but quantity will decrease.
C. Price and quantity will decrease.
D. Price will decrease but quantity will increase



Answer: B

If A and B are complements, an increase in the price of good A would:

If A and B are complements, an increase in the price of good A would: 




A. have no effect on the quantity demanded of B.
B. lead to an increase in demand for B.
C. lead to a decrease in demand for B.
D. none of the statements associated with this question are correct.



Answer: C

An increase in the price of steak will probably lead to:

An increase in the price of steak will probably lead to: 




A. an increase in demand for chicken.
B. an increase in demand for steak.
C. no change in the demand for steak or chicken.
D. an increase in the supply for chicken.


Answer: A

The more credibility the Fed has,

The more credibility the Fed has,




A. the lower the sacrifice ratio will be
B. the higher the sacrifice ratio will be
C. the higher the potential output will be
D. the lower the potential output will be


Answer: A

The greater the Sacrifice Ratio

The greater the Sacrifice Ratio




A. The more costly it is to lower the interest rate
B. The more costly it is to lower the inflation rate
C. The more costly it is to lower GDP
D. The more costly it is to lower unemployment
E. The more costly it is to lower net exports
F. The more costly it is to lower national saving
G. The more costly it is to lower investment


Answer: B

The first and foremost mission given to Paul Volcker was to:

The first and foremost mission given to Paul Volcker was to:




A. Increase inflation rates
B. Decrease inflation rates
C. Decrease unemployment
D. Increase unemployment
E. Promote financial stability



Answer: B

From 1979 to 1987, Paul Volcker

From 1979 to 1987, Paul Volcker




A. Was the chairman of the Fed
B. Was the Secretary of the Treasury
C. Was the prime minister of England
D. Was the president of the USA
E. Was the president of the Chase Manhattan Bank



Answer: A

How should the quantity theory of money "MV=YP" read ?

How should the quantity theory of money "MV=YP" read ?





A. Money supply equals money demand
B. Money supply times velocity of money equals real GDP
C. Money supply times velocity of money equals nominal GDP
D. Money supply equals nominal GDP



Answer: C

Others being equal, when the Fed tightens its monetary policy, how does the MP curve change?

Others being equal, when the Fed tightens its monetary policy, how does the MP curve change?




A. Shifts upwards because Fed changes its monetary policy
B. Shifts downwards because Fed changes its monetary policy
C. Shifts upwards because Fed follows its monetary policy
D. Shifts downwards because Fed follows its monetary policy
E. Stay the same



Answer: A

Others being equal, when realized inflation goes up, how does the MP curve change?

Others being equal, when realized inflation goes up, how does the MP curve change?




A. Shifts upwards because Fed follows the MP rule
B. Shifts downwards because Fed follows the MP rule
C. Shifts upwards because Fed changes the MP rule
D. Shifts downwards because Fed changes the MP rule
E. Stay the same


Answer: A

What does the Taylor Rule tell us?

What does the Taylor Rule tell us?




A. The actual interest rate
B. The predicted interest rate given Fed's past actions
C. The predicted CPI
D. The past interest rate


Answer: B

Which of the following is NOT related to limitations of the CPI?

Which of the following is NOT related to limitations of the CPI?




A. The gas-mileage of passenger cars improved in the past decades
B. The widespread use of new online services
C. House prices are not included in the calculation of the CPI
D. None of the above



Answer: D

Which of the following is TRUE about the CPI?

Which of the following is TRUE about the CPI?




A. It is scaled by real GDP
B. It is designed to reflect the "true cost of living".
C. Its value is time invariant.
D. None of the above


Answer: B

The IS curve is constructed through which of the following?

The IS curve is constructed through which of the following?




A) excessive national saving and imports
B) net capital outflow and excessive national saving
C) net exports and net capital outflow
D) none of the above


Answer: B

The exchange rate adjusts until:

The exchange rate adjusts until:




A) capital inflows = capital outflows
B) exports = imports
C) net exports = net capital outflow
D) none of the above


Answer: C

The CFD curve is downward sloping because

The CFD curve is downward sloping because





A) the lower our interest rate is, the more attractive foreign assets become
B) the lower our interest rate is, the less attractive foreign assets become
C) the higher our interest rate is, the less attractive domestic assets become
D) none of the above



Answer: A

Which of the following reflects labor market frictions?

Which of the following reflects labor market frictions? 





A) a person is fired by an employer but finds a new job the next day
B) an employer decides to cut wages
C) an employer lays off a group of productive and well-paid workers to save costs
D) none of the above



Answer: D

What is TRUE about the labor supply in the definition of potential (full-employment) output?

What is TRUE about the labor supply in the definition of potential (full-employment) output? 




A) it is the labor supply when non-structural unemployment is zero
B) it is the labor supply when structural unemployment is zero
C) it is the labor supply when both non-structural and structural unemployment are zero
D) none of the above



Answer: A

The per-worker production function in the Solow model assumes

The per-worker production function in the Solow model assumes





A) constant returns to scale and increasing marginal productivity of capital.
B) constant returns to scale and decreasing marginal productivity of capital.
C) increasing returns to scale and decreasing marginal productivity of capital.
D) decreasing returns to scale and decreasing marginal productivity of capital.



Answer: B

What two factors should a firm equate in deciding how many workers to employ?

What two factors should a firm equate in deciding how many workers to employ?




A) The marginal product of labor and the marginal product of capital
B) The marginal product of labor and the real wage rate
C) The marginal product of labor and the real interest rate
D) The marginal product of labor and the user cost of capital



Answer: B

The marginal product of capital is the

The marginal product of capital is the 




A) capital needed to produce one more unit of output.
B) additional output from a one-unit increase in capital.
C) labor needed to accompany a one-unit increase in capital.
D) total output after a one-dollar increase in capital.



Answer: B

The value of real GDP in the current year equals

The value of real GDP in the current year equals




A) the value of current-year output in prices of the base year.
B) the value of current-year output in prices of the current year.
C) the value of base-year output in prices of the base year.
D) the value of base-year output in prices of the current year.


Answer: A

The fundamental identity of national income accounting is

The fundamental identity of national income accounting is




A) total production = total income - total expenditure
B) total production = total income + total expenditure
C) total production = total income / total expenditure
D) total production = total income = total expenditure



Answer: D

The exchange rates you see at airports are

The exchange rates you see at airports are




A. Real exchange rates
B. Informative about foreign goods
C. Mostly irrelevant to this course
D. None of the above


Answer: C

What is the definition of net capital outflow (CF)?

What is the definition of net capital outflow (CF)?




A. Purchase of goods from ROW - Sale of goods to ROW
B. Purchase of financial assets from ROW - Sale of financial assets to ROW
C. Purchase of services from ROW - Sale of services to ROW
D. None of the above


Answer: B

What is the equation for national saving?

What is the equation for national saving?




A. NS = Y - NT - G
B. NS = Y - C - G
C. NS = S + D
D. None of the above



Answer: B

Saving by households is given by:

Saving by households is given by:




A. S = Y - NT
B. S = Y - C
C. S = Y - NT - C
D. None of the above



Answer: C

Which agents are EXCLUDED from national saving calculation?

Which agents are EXCLUDED from national saving calculation?




A. Firms and Households
B. Firms and the Government
C. The Government and the Rest of the World
D. Firms and the Rest of the World



Answer: D

What is a key property of MPK with regard to investment decisions?

What is a key property of MPK with regard to investment decisions?




A. It is increasing in the labor input.
B. It has the constant returns to scale property.
C. It is decreasing in the amount of existing capital.
D. It has a coefficient of one-third.


Answer: C

What is the criterion for an individual to be categorized as "Not in the labor force"?

What is the criterion for an individual to be categorized as "Not in the labor force"?




A. Individual who worked at least one paid hour in the previous week.
B. Individual who looked for jobs in the past four weeks but failed to find one.
C. Individual who did not work nor looked for jobs in the past four weeks.
D. Individual who stayed at home all the time.



Answer: B

What is the criterion for an individual to be categorized as "Not in the labor force"?

What is the criterion for an individual to be categorized as "Not in the labor force"?




A. Individual who worked at least one paid hour in the previous week.
B. Individual who looked for jobs in the past four weeks but failed to find one.
C. Individual who did not work nor looked for jobs in the past four weeks.
D. Individual who stayed at home all the time.



Answer: C

What does "HWI" stand for?

What does "HWI" stand for?




A. House Work Instruction
B. Help Wanted Index
C. Ham Wraps Index
D. Honest Worker Index



Answer: B

What is a plausible explanation for the existence of "Sticky Wages"?

What is a plausible explanation for the existence of "Sticky Wages"?




A. Employers care too much about workers' happiness.
B. Workers would go on strike if wages are lowered.
C. Employers are afraid that the best workers will leave if wages are lowered.
D. Employers want to avoid firing workers.



Answer: C

Which of the following is a CORRECT description of neoclassical economists?

Which of the following is a CORRECT description of neoclassical economists?




A. They believe labor markets are fairly inefficient.
B. They believe labor markets are fairly efficient.
C. They think the short run may take a few years.
D. They are associated with the famous line,
"in the long run, we are all dead".



Answer: B

Historically, structurally unemployed workers are:

Historically, structurally unemployed workers are:




A. Workers that design structures
B. Skilled workers
C. Unskilled workers
D. None of the above



Answer: C

Which of the following is TRUE for structural unemployment?

Which of the following is TRUE for structural unemployment?




A. It disappears in the long run.
B. It results from a mismatch of worker skills and employer needs.
C. It is relevant for the Fed's consideration of monetary policy.
D. It is better than non-structural unemployment


Answer: B

The GDP per capita curve in the Solow Growth model represents

The GDP per capita curve in the Solow Growth model represents




A. The level of income per capita
B. The level of labor income per capita
C. The level of dividends per capita
D. The level of net transfers per capita



Answer: A

The saving per capita curve in the Solow Growth model represents

The saving per capita curve in the Solow Growth model represents




A. The amount of saving per capita by households
B. The amount of saving per capita by the government
C. The amount of saving per capita by the rest of the world
D. The amount of saving per capita by the firm sector



Answer: A

The maintenance investment line in the Solow Growth model represents

The maintenance investment line in the Solow Growth model represents




A. Amount of investment per capita required for the steady state capital per capita
B. Amount of production required for the steady state capital per capita
C. Amount of total investment required for the steady state total GDP
D. Saving per capita required for the steady state total GDP



Answer: A

In the Solow Growth Model, the steady state level of capital per capita represents:

In the Solow Growth Model, the steady state level of capital per capita represents:




A. The level of capital per capita where capita per capita is stable
B. The level of capital per capita where capita per capita is shrinking
C. The level of capital per capita where capita per capita is growing
D. The level of capital per capita where capita per capita is undetermined



Answer: A

The base year of the real GDP is:

The base year of the real GDP is:





A. Is always the year of the prices used in the measure but not of quantities
B. Is always the year of the quantities used in the measure but not of prices
C. Is always the year of both the prices and quantities used in the measure



Answer: A

An advantage of Real GDP over Nominal GDP is that the former is:

An advantage of Real GDP over Nominal GDP is that the former is:



A. Less affected by price changes over the years
B. More affected by price changes over the years
C. Unaffected by price changes over the years



Answer: A

One of the reasons for the Capital Account and the Current Account to be related is:

One of the reasons for the Capital Account and the Current Account to be related is:




A. In general, foreign countries do not use US Dollars.
B. Exports are generally lower than imports.
C. Exports are generally higher than imports.
D. Treasury bonds are safer than foreign sovereign bonds.
E. Government expenditures are generally greater than net transfers



Answer: A

A government deficit occurs when:

A government deficit occurs when:




A. G - NT > 0
B. NX < 0
C. S < C
D. Y = C + G + I + NX
E. I = 0



Answer: A

The arrows in the CFI diagram represent?

The arrows in the CFI diagram represent?




A) Flows of payments
B) Flows of Goods
C. Flows of services
D. Flows of labor
E. Flows of physical capital



Answer: A

Which of the following is a consequence of rent controls established to keep housing affordable for the poor?

Which of the following is a consequence of rent controls established to keep housing affordable for the poor? 




A. Less rental housing is available as prospective landlords find it unprofitable to rent at restricted prices.
B. The quality of rental housing declines as landlords lack the funds and incentive to maintain properties.
C. Apartment buildings are torn down in favor of office buildings, shopping malls, and other buildings where rents are not controlled.
D. All of the above are consequences of rent controls.



Answer: D

If government set a maximum price of $45 in the above market:

If government set a maximum price of $45 in the above market: 




A. a shortage of 21 units would arise.
B. a surplus of 21 units would arise.
C. a surplus of 40 units would arise.
D. it would create neither a shortage nor a surplus.



Answer: D

If government set a minimum price of $50 in the above market, a:

If government set a minimum price of $50 in the above market, a: 




A. shortage of 21 units would occur.
B. shortage of 125 units would occur.
C. surplus of 21 units would occur.
D. surplus of 125 units would occur.



Answer: C

Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that:

Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that: 




A. The supply of clothing has grown faster than the demand for clothing.
B. Demand for clothing has grown faster than the supply of clothing.
C. The supply of and demand for clothing have grown by the same proportion.
D. There is no way to determine what has happened to supply and demand with this information.



Answer: B

Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that:

Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that: 




A. Decreases in the demand for computer memory have exceeded increases in supply.
B. Decreases in the supply of computer memory have exceeded increases in demand.
C. Increases in the demand for computer memory have exceeded increases in supply.
D. Increases in the supply of computer memory have exceeded increases in demand.



Answer: D

Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will:

Given a downsloping demand curve and an upsloping supply curve for a product, an increase in the price of a substitute good will: 




A. increase equilibrium price and quantity.
B. decrease equilibrium price and quantity.
C. increase equilibrium price and decrease equilibrium quantity.
D. decrease equilibrium price and increase equilibrium quantity.



Answer: A

With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will:

With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will: 




A. increase equilibrium price and quantity.
B. decrease equilibrium price and quantity.
C. decrease equilibrium price and increase equilibrium quantity.
D. increase equilibrium price and decrease equilibrium quantity.



Answer: C

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will: 





A. increase equilibrium price and quantity if the product is a normal good.
B. decrease equilibrium price and quantity if the product is a normal good.
C. have no effect on equilibrium price and quantity.
D. reduce the quantity demanded, but not shift the demand curve.




Answer: A

Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement:

Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement: 





A. suggests that the supply of DVD players has increased.
B. suggests that the demand for DVD players has increased.
C. constitutes an exception to the law of demand in that they suggest an upward sloping demand curve.
D. constitutes an exception to the law of supply in that they suggest a downward sloping supply curve.




Answer: A

Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements:

Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements: 




A. suggest that the demand for Mustangs decreased between 2007 and 2008.
B. suggest that the supply of Mustangs must have increased between 2007 and 2008.
C. suggest that the demand for Mustangs increased between 2007 and 2008.
D. constitute an exception to the law of demand in that they suggest an upsloping demand curve.



Answer: C

An unusually large crop of coffee beans might:

An unusually large crop of coffee beans might: 




A. increase the supply of coffee.
B. increase the price of coffee.
C. decrease the quantity of coffee consumed.
D. increase the price of tea.



Answer: A

which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then

which shows demand and supply conditions in the competitive market for product X. If supply is S1 and demand D0, then 




A. at any price above 0G a shortage would occur.
B. 0F represents a price that would result in a surplus of AC.
C. a surplus of GH would occur.
D. 0F represents a price that would result in a shortage of AC.




Answer: D

Which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:

Which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then: 




A. supply has increased and equilibrium quantity has decreased.
B. supply has decreased and equilibrium quantity has decreased.
C. there has been an increase in the quantity supplied.
D. supply has increased and price has risen to 0G.



Answer: B

Which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be:

Which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be: 




A. 0F and 0C respectively.
B. 0G and 0B respectively.
C. 0F and 0A respectively.
D. 0E and 0B respectively.




Answer: A

Which of the following statements is correct?

Which of the following statements is correct? 




A. If demand increases and supply decreases, equilibrium price will fall.
B. If supply increases and demand decreases, equilibrium price will fall.
C. If demand decreases and supply increases, equilibrium price will rise.
D. If supply declines and demand remains constant, equilibrium price will fall.



Answer: B

At the current price there is a shortage of a product. We would expect price to:

At the current price there is a shortage of a product. We would expect price to: 




A. increase, quantity demanded to increase, and quantity supplied to decrease.
B. increase, quantity demanded to decrease, and quantity supplied to increase.
C. increase, quantity demanded to increase, and quantity supplied to increase.
D. decrease, quantity demanded to increase, and quantity supplied to decrease.


Answer: B

At the point where the demand and supply curves intersect:

At the point where the demand and supply curves intersect: 




A. the buying and selling decisions of consumers and producers are inconsistent with one another.
B. the market is in disequilibrium.
C. there is neither a surplus nor a shortage of the product.
D. quantity demanded exceeds quantity supplied.


Answer: C

If there is a shortage of product X:

If there is a shortage of product X: 




A. fewer resources will be allocated to the production of this good.
B. the price of the product will rise.
C. the price of the product will decline.
D. the supply curve will shift to the left and the demand curve to the right, eliminating the shortage.



Answer: B

At the equilibrium price:

At the equilibrium price: 




A. quantity supplied may exceed quantity demanded or vice versa.
B. there are no pressures on price to either rise or fall.
C. there are forces that cause price to rise.
D. there are forces that cause price to fall.


Answer: B

If a product is in surplus supply, its price:

If a product is in surplus supply, its price: 




A. is below the equilibrium level.
B. is above the equilibrium level.
C. will rise in the near future.
D. is in equilibrium.


Answer: B

Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect:

Suppose that corn prices rise significantly. If farmers expect the price of corn to continue rising relative to other crops, then we would expect: 




A. the supply of ethanol, a corn-based product, to increase.
B. consumer demand for wheat to fall.
C. the supply to increase as farmers plant more corn.
D. the supply to fall as farmers plant more of other crops.


Answer: C

Other things equal, if the price of a key resource used to produce product X falls, the:

Other things equal, if the price of a key resource used to produce product X falls, the: 




A. product supply curve of X will shift to the right.
B. product demand curve of X will shift to the right.
C. product supply curve of X will shift to the left.
D. product demand curve of X will shift to the left.



Answer: A

The location of the supply curve of a product depends on:

The location of the supply curve of a product depends on: 




A. the technology used to produce it.
B. the prices of resources used in its production.
C. the number of sellers in the market.
D. all of these.



Answer: D

An improvement in production technology will:

An improvement in production technology will: 




A. increase equilibrium price.
B. shift the supply curve to the left.
C. shift the supply curve to the right.
D. shift the demand curve to the left.



Answer: C

A leftward shift of a product supply curve might be caused by:

A leftward shift of a product supply curve might be caused by:




A. an improvement in the relevant technique of production.
B. a decline in the prices of needed inputs.
C. an increase in consumer incomes.
D. some firms leaving an industry.



Answer: D

Increasing marginal cost of production explains:

Increasing marginal cost of production explains: 




A. the law of demand.
B. the income effect.
C. why the supply curve is upsloping.
D. why the demand curve is downsloping.



Answer: C

A firm's supply curve is upsloping because:

A firm's supply curve is upsloping because: 




A. the expansion of production necessitates the use of qualitatively inferior inputs.
B. mass production economies are associated with larger levels of output.
C. consumers envision a positive relationship between price and quality.
D. beyond some point the production costs of additional units of output will rise.



Answer: D

In which of the following statements are the terms "demand" and "quantity demanded" used correctly?

In which of the following statements are the terms "demand" and "quantity demanded" used correctly? 





A. When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell.
B. When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell.
C. When the price of ice cream rose, the demand for ice fell, and the quantity demanded of ice cream toppings fell.
D. None of these statements use the terms correctly.



Answer: B

Which of the following would mostly likely increase the demand for gasoline?

Which of the following would mostly likely increase the demand for gasoline? 




A. the expectation by consumers that gasoline prices will be higher in the future.
B. the expectation by consumers that gasoline prices will be lower in the future.
C. a widespread shift in car ownership from SUVs to hybrid sedans.
D. a decrease in the price of public transportation.



Answer: A

An inferior good is:

An inferior good is: 



A. one whose demand curve will shift rightward as incomes rise.
B. one whose price and quantity demanded vary directly.
C. one which has not been approved by the Federal Food and Drug Administration.
D. not accurately defined by any of the above statements.



Answer: D

Suppose that a group of male pied flycatchers migrated from a region where there were no collared flycatchers to a region where both species were present. Assuming events like this are very rare, which of the following scenarios is least likely?

Suppose that a group of male pied flycatchers migrated from a region where there were no collared flycatchers to a region where both species were present. Assuming events like this are very rare, which of the following scenarios is least likely? 




A) The frequency of hybrid offspring would increase.
B) Migrant pied males would produce fewer offspring than would resident pied males.
C) Pied females would rarely mate with collared males.
D) Migrant males would mate with collared females more often than with pied females.
E) The frequency of hybrid offspring would decrease.



Answer: E

Which of the following factors would not contribute to allopatric speciation?

Which of the following factors would not contribute to allopatric speciation? 




A) A population becomes geographically isolated from the parent population.
B) The separated population is small, and genetic drift occurs.
C) The isolated population is exposed to different selection pressures than the ancestral population.
D) Different mutations begin to distinguish the gene pools of the separated populations.
E) Gene flow between the two populations is extensive.



Answer: E

Bird guides once listed the myrtle warbler and Audubon's warbler as distinct species. Recently, these birds have been classified as eastern and western forms of a single species, the yellow-rumped warbler. Which of the following pieces of evidence, if true, would be cause for this reclassification?

Bird guides once listed the myrtle warbler and Audubon's warbler as distinct species. Recently, these birds have been classified as eastern and western forms of a single species, the yellow-rumped warbler. Which of the following pieces of evidence, if true, would be cause for this reclassification?





A) The two forms interbreed often in nature, and their offspring have good survival and reproduction.
B) The two forms live in similar habitats.
C) The two forms have many genes in common.
D) The two forms have similar food requirements.
E) The two forms are very similar in coloration.



Answer: A

According to the punctuated equilibria model,

According to the punctuated equilibria model,




A) natural selection is unimportant as a mechanism of evolution.
B) given enough time, most existing species will branch gradually into new species.
C) most new species accumulate their unique features relatively rapidly as they come into existence, then change little for the rest of their duration as a species.
D) most evolution occurs in sympatric populations.
E) speciation is usually due to a single mutation.



Answer: C

Males of different species of the fruit fly Drosophila that live in the same parts of the Hawaiian Islands have different elaborate courtship rituals. These rituals involve fighting other males and making stylized movements that attract females. What type of reproductive isolation does this represent?

Males of different species of the fruit fly Drosophila that live in the same parts of the Hawaiian Islands have different elaborate courtship rituals. These rituals involve fighting other males and making stylized movements that attract females. What type of reproductive isolation does this represent? 





A) habitat isolation
B) temporal isolation
C) behavioral isolation
D) gametic isolation
E) postzygotic barriers




Answer: C

On the Bahamian island of Andros, mosquitofish populations live in various, now-isolated, freshwater ponds that were once united. Currently, some predator-rich ponds have mosquitofish that can swim in short, fast bursts; other predator-poor ponds have mosquitofish that can swim continuously for a long time. When placed together in the same body of water, the two kinds of female mosquitofish exhibit exclusive breeding preferences.

On the Bahamian island of Andros, mosquitofish populations live in various, now-isolated, freshwater ponds that were once united. Currently, some predator-rich ponds have mosquitofish that can swim in short, fast bursts; other predator-poor ponds have mosquitofish that can swim continuously for a long time. When placed together in the same body of water, the two kinds of female mosquitofish exhibit exclusive breeding preferences.

Which two of the following have operated to increase divergence between mosquitofish populations on Andros? 


1. improved gene flow
2. bottleneck effect
3. sexual selection
4. founder effect
5. natural selection

A) 1 and 3
B) 2 and 3
C) 2 and 4
D) 3 and 4
E) 3 and 5


Answer: E

Which type of reproductive isolation operates to keep the mosquito fish isolated, even when fish from different ponds are reunited in the same body of water? 


A) behavioral isolation
B) habitat isolation
C) temporal isolation
D) mechanical isolation
E) gametic isolation

Answer: A

What is the best way to promote fusion between two related populations of mosquitofish, one of which lives in a predator-rich pond, and the other of which lives in a predator-poor pond? 


A) Build a canal linking the two ponds that permits free movement of mosquitofish, but not of predators.
B) Transfer only female mosquitofish from a predator-rich pond to a predator-poor pond.
C) Perform a reciprocal transfer of females between predator-rich and predator-poor ponds.
D) Remove predators from a predator-rich pond and transfer them to a predator-poor pond.

Answer: A

If one builds a canal linking a predator-rich pond to a predator-poor pond, then what type(s) of selection should subsequently be most expected among the mosquitofish in the original predator-rich pond, and what type(s) should be most expected among the mosquitofish in the formerly predator-poor pond? 


A) stabilizing selection; directional selection
B) stabilizing selection; stabilizing selection
C) less-intense directional selection; more-intense directional selection
D) less-intense disruptive selection; more-intense disruptive selection



Answer: C

The predatory fish rely on visual cues and speed to capture mosquitofish. Mosquitofish rely on speed and visual cues to avoid the predatory fish. Which adaptation(s) might help the predators survive in ponds that are home to faster mosquitofish? 


1. directional selection for increased speed
2. stabilizing selection for speed that matches that of the mosquitofish
3. change in hunting behavior that replaces reliance on visual cues with reliance on tactile cues, which can be used to hunt at night
4. change in hunting behavior that eliminates speed in favor of better camouflage, which permits an ambush strategy

A) 1 only
B) 2 only
C) either 1 or 3
D) either 2 or 3
E) 1, 3, or 4


Answer: E

On the volcanic, equatorial West African island of Sao Tomé, two species of fruit fly exist. Drosophila yakuba inhabits the island's lowlands, and is also found on the African mainland, located about 200 miles away. At higher elevations, and only on Sao Tomé, is found the very closely related Drosophila santomea. The two species can hybridize, though male hybrids are sterile. A hybrid zone exists at middle elevations, though hybrids there are greatly outnumbered by D. santomea. Studies of the two species' nuclear genomes reveal that D. yakuba on the island is more closely related to mainland D. yakuba than to D. santomea (2n = 4 in both species). Sao Tomé rose from the Atlantic Ocean about 14 million years ago.

On the volcanic, equatorial West African island of Sao Tomé, two species of fruit fly exist. Drosophila yakuba inhabits the island's lowlands, and is also found on the African mainland, located about 200 miles away. At higher elevations, and only on Sao Tomé, is found the very closely related Drosophila santomea. The two species can hybridize, though male hybrids are sterile. A hybrid zone exists at middle elevations, though hybrids there are greatly outnumbered by D. santomea. Studies of the two species' nuclear genomes reveal that D. yakuba on the island is more closely related to mainland D. yakuba than to D. santomea (2n = 4 in both species). Sao Tomé rose from the Atlantic Ocean about 14 million years ago. 


Which of the following reduces gene flow between the gene pools of the two species on Sao Tomé, despite the existence of hybrids? 



A) hybrid breakdown
B) hybrid inviability
C) hybrid sterility
D) temporal isolation
E) a geographic barrier


Answer: C


The observation that island D. yakuba are more closely related to mainland D. yakuba than island D. yakuba are to D. santomea is best explained by proposing that D. santomea 



A) descended from a now-extinct, non-African fruit fly.
B) arrived on the island before D. yakuba.
C) descended from a single colony of D. yakuba, which had been introduced from elsewhere, with no subsequent colonization events.
D) descended from an original colony of D. yakuba, of which there are no surviving members. The current island D. yakuba represent a second colonization event from elsewhere.


Answer: D


If a speciation event occurred on Sao Tomé, producing D. santomea from a parent colony of D. yakuba, then which terms apply? 


I.macroevolution
II.allopatric speciation
III.sympatric speciation

A) I only
B) II only
C) I and II
D) I and III


Answer: D



Using only the information provided in the paragraph, which of the following is the best initial hypothesis for how D. santomea descended from D. yakuba? 



A) geographic isolation
B) autopolyploidy
C) habitat differentiation
D) sexual selection
E) allopolyploidy



Answer: C


Which of these evolutionary trees represents the situation described in the previous paragraph (Note: Yakuba (I) represents the island population, and yakuba (M) represents the mainland population)? 


A. SEE IMAGE
B. SEE IMAGE
C. SEE IMAGE
D. SEE IMAGE

Answer: A


If the low number of hybrid flies in the hybrid zone, relative to the number of D. santomea flies there, is due to the fact that hybrids are poorly adapted to conditions in the hybrid zone, and if fewer hybrid flies are produced with the passage of time, these conditions will most likely lead to 



A) fusion.
B) reinforcement.
C) stability.
D) further speciation events.



Answer: B

In order for speciation to occur, what must be true?

In order for speciation to occur, what must be true? 




A) The number of chromosomes in the gene pool must change.
B) Changes to centromere location or chromosome size must occur within the gene pool.
C) Large numbers of genes that affect a single phenotypic trait must change.
D) Large numbers of genes that affect numerous phenotypic traits must change.
E) At least one gene, affecting at least one phenotypic trait, must change.



Answer: E

Which of the following statements about speciation is correct?

Which of the following statements about speciation is correct? 




A) The goal of natural selection is speciation.
B) When reunited, two allopatric populations will interbreed freely if speciation has occurred.
C) Natural selection chooses the reproductive barriers for populations.
D) Prezygotic reproductive barriers usually evolve before postzygotic barriers.
E) Speciation is a basis for understanding macroevolution.



Answer: E

Speciation Speciation A) occurs at such a slow pace that no one has ever observed the emergence of new species. B) occurs only by the accumulation of genetic change over vast expanses of time. C) must begin with the geographic isolation of a small, frontier population. D) and microevolution are synonymous. E) can involve changes to a single gene.

Speciation 




A) occurs at such a slow pace that no one has ever observed the emergence of new species.
B) occurs only by the accumulation of genetic change over vast expanses of time.
C) must begin with the geographic isolation of a small, frontier population.
D) and microevolution are synonymous.
E) can involve changes to a single gene.


Answer: E

According to the concept of punctuated equilibrium,

According to the concept of punctuated equilibrium, 





A) natural selection is unimportant as a mechanism of evolution.
B) given enough time, most existing species will branch gradually into new species.
C) a new species accumulates most of its unique features as it comes into existence.
D) evolution of new species features long periods during which changes are occurring, interspersed with short periods of equilibrium, or stasis.
E) transitional fossils, intermediate between newer species and their parent species, should be abundant.




Answer: C
Subscribe to: Posts (Atom)