2. In competitive markets, firms ________.
(A) coordinate pricing decisions with other firms
(B) take the market price as given
(C) have the government set maximum and minimum prices
(D) set the market price

1. Which of the following best describes scarce resources? (A) Resources that most people cannot afford to buy (B) Resources that can only be distributed efficiently by the government (C) Resources for which the quantity demanded is the same for all economic agents (D) Resources for which the quantity that people want exceeds the quantity that is freely available

3. An implication of Walras’ law is that: (A) firms always make positive profits. (B) if there are N markets, we only need to focus on N-1 markets (C) firms should shut down if they are making losses in the short run. (D) the Walrasian auctioneer is necessary.

4. A pure public good is: (A) rivalrous and excludable. (B) non-rivalrous and excludable. (C) rivalrous and expensive. (D) non-rivalrous and non-excludable.

5. Efficiency in consumption under convex and differentiable preferences requires: (A) luck. (B) MRS=MRT. (C) that all prices are positive. (D) that MRS are equal for all consumers. 

6. In a competitive equilibrium in an exchange economy with two individuals, if one individual is a net demander of a good, then: (A) one individual's marginal rate of substitution must exceed the other individual's marginal rate of substitution (B) the other individual must be a net supplier of that good (C) the equilibrium is not Pareto-optimal. (D) the other individual must also be a net demander of that good.

7. An externality occurs when ________. (A) the quantity demanded of a good exceeds the quantity supplied (B) the quantity supplied of a good exceeds the quantity demanded (C) the government regulates production and consumption decisions (D) an economic activity affects third parties not engaged in the activity

8. Suppose the annual growth rate of an economy is expected to be 3 percent. This implies that the economy's ________ is expected to ________ by 3 percent annually. (A) GDP per capita； increase (B) price level； increase (C) capital stock； increase (D) unemployment rate； decline

9. Exponential growth implies that ________. (A) growth rates can only be positive (B) growth rates will alternate between positive and negative values in every consecutive time period (C) relatively large differences in growth rates will translate into small differences in the level of a quantity after many years of growing (D) relatively small differences in growth rates will translate into large differences in the level of a quantity after many years of growing

10. A worker is said to be unemployed if he ________. (A) does not have a job and is not actively looking for a job (B) is working from home and drawing a weekly salary (C) has been working part-time and has been actively looking for full-time work (D) does not have a job, has been actively looking for one in the prior 4 weeks, and is available for work 

11. Economic growth is said to be persistent, meaning that if the economy is in an expansion this quarter, it will probably ________. (A) experience zero growth next quarter (B) experience negative growth next quarter (C) experience positive growth next quarter (D) be completely unpredictable next quarter

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