Question 1

What are properties of a typical indifference curve? (Choose TWO.)

Options :

A : Higher indifference curves are preferred to lower ones.

B : Indifference curves can intersect.

C : Indifference curves do not cross.

D : Indifference curves slope upward.

Answer: A,C

Question 2

What is a characteristic of common law as compared to civil law?

Options :

A : Common law relies primarily on comprehensive statutes and codes.

B : Common law is more reliant on precedents from previous judicial decisions.

C : Common law is based on religious teachings.

D : Common law minimizes the role of judges.

Answer: B

Question 3

Which system has elements of a market economy and a command economy?

Options :

A : Fair economy

B : Market-command economy

C : Mixed economy

D : Compromise economy

Answer: C

Question 4

What are costs to home countries of foreign direct investment (FDI)? (Choose TWO.)

Options :

A : Job loss

B : Reduced standard of living

C : Cultural disintegration

D : Capital outflow

E : Loss of sovereignty

F : Loss of intellectual property

Answer: A,D

Question 5

In a monopoly, which statements are likely true? (Choose TWO.)

Options :

A : One seller offers a unique good with no close substitutes

B : There are barriers to entry into the market

C : Firms are price takers

D : Marginal revenue equals price

E : Entry is free in the long run

Answer: A,B