1. Imagine that you could travel back in time to another era, bringing with you all the knowledge you have from the modern age. Your wage in the older era might be higher because people with your knowledge were in short supply then. But why might your wage also be lower?
A) because in bygone eras the economy was less productive overall
B) no one would believe that you were from the future
C) because in bygone eras, economics had not been invented yet
D) because in bygone eras, people were more productive than they are today
2. Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart?
A) potato farmers get arrested for anticompetitive pricing.
B) some farmers sell more potatoes than agreed upon.
C) people stop buying potatoes and switch to other foods instead.
D) the cost of producing potatoes falls.
3. Which of the following determine an individual's wage?
I the individual's skills
II. the productivity of the firm the individual works in
III. the shape of the individual's labor supply curve
A) I and II
B) I and III
C) II and III only
D) I, II, and III
4. In 2011, Google introduced its social networking site, Google+. Even though Google+ is cleaner and more straightforward than its nearest competitor, Face book, it still has trouble competing with Face book because
A) most people don't know about it.
B) face book has a monopoly on social networking.
C) everyone's already on Face book.
D) the market is still contestable.