4. People often complained: North second highway is opened, but the traffic still seems to remain the congestion situation. What is the best economic terms that can explain the above discussion:
(A) Increasing returns to scale.
(B) Short-term productivity unchanged.
(C) Supply creates its own demands/needs.
(D) Compare advantage law.
(E) Liquidity trap exists.

5. Chi-Ming is over thirty and still unmarried, and finally think seriously to marry with Miss Cun-Jiao. However, He still hesitated and worried to meet another more lovely lady although Miss Cun-Jiao is very cute. What is the best economic terms that can explain the above discussion: (A) Economies to scale. (B) Decreasing marginal returns. (C) Opportunity cost. (D) Compare advantages. (E) Normal profit.

6. The final exam will be held after ten days. Lee Tian-Tsai chooses four courses in this semester. The credits are Chinese 4 credits, English 4 credits, Civil Law 2 credits, China General History 2 credits. Student Lee wants to maximize his average score (the average score is calculated as the sum of the product of the subject test scores and the credit score, and then is divided by the total credit score). He knows that he prepares for each subject the more one day, how the subject's score will increase. However, he does not know how to allocate his time to prepare for the four subjects. He has learned that you are the best man in calculating because you are major in economics. How do you use What kind of economic concept for you to choose to answer this question to Lee Tian-Tsai. (A) Economies to scale. (B) Decreasing marginal returns. (C) Opportunity cost. (D) Compare advantages. (E) Normal profit.

7. Mr. Nobita is very busy since his boss hands over a lot of things. Now Nobita's Mom wants him to accompany with her to see a doctor in the evening, while his girlfriend calls him to help her to move something. At this time, Nobita had to choice between his boss, mother, and girlfriend. At this point, what is the principle of economics should be considered. (A) Full employment principle. (B) Principle of diminishing marginal utility. (C) Pareto optimum principle. (D) The principle of constant short-term productivity. (E) Economic rent minimization principle.

8. Assuming you are the boss of Din-Tai-Fung restaurant, and you have four employees. Chen Fei-Ge can work 240 small dumplings for eight hours a day. Lin Shuang-Ye can do 270 small dumplings for ten hours a day. Wang Ku-Mei can make 300 small dumplings for 12 hours a day. Lee La-Mei can work 360 small dumplings for 15 hours a day. If you are the boss of Ding-Tai-Fung, you want to give the performance evaluation in accordance with the principles of performance outputs. Who should win the superior prize. (A) Chen Fei-Ge (B) Lin Shuang-Ye (C) Wang Ku-Mei (D) Lee La-Mei (E) Four people enjoys the same performance appraisal.

9. Peter is faced with a choice. He loves his work and he has an endless stream of creative ideas. The boss asked him to travel with him and promised him to get CASE, and obtain the promotion and salary increase; his wife asked him to go home and spend their anniversary tonight; good friends invited him to join the partnership business, and there are great opportunities to earn money and go to school to earn a master's degree through finishing training courses. What is his best choice according to Maslow's hierarchy need theorem of human-being. (A) Work hard. (B) Travel with the boss. (C) Go home and accompany with his wife. (D) Talk with friends about business. (E) Go to school for further studies.

10. Both Maogo and Youge are men who have married for seven years. Two people met in a day. Maogo said that he was busy with work. His marriage was facing a "seven-year itch" and was in jeopardy. Youge said that he spend time to talk with his wife in an elegant restaurant appointment every week. His children are arranged to be taken care by others. His marriage is very flourish and happy. They exist a great deal of difference. What types of functions of micro-economics that Youge understands and has been applied the love function to the real daily activities. (A) Production function. (B) Cost function. (C) Profit function. (D) Supply function. (E) Demand function.

11. If the manufacturer sells the same product on the domestic markets and international markets, then: (A) It means that the firm is facing two markets. (B) If the demand elasticities between two markets are the same, differential pricing can be employed. (C) If consumers can resell each other in both markets, differential pricing can be employed. (D) The profits in differential pricing is inevitably higher than that of a single price. (E) All of the above.

12. You find a special wood on the road when you enjoy your travel in Japan. You take the wood to home and your friend, who is an artist, he bought this wood with 600 dollars. Your friend designs a model to the wood and sells this wood to the gallery with 6,000 dollars. Later on, a millionaire buys the model with 60,000 dollars in the fall of the gallery. Five years later, the millionaire dies and this model is transferred to the art store and is sold to a rich woman with 600,000 dollars. Ask: what is the increments of the GNP this year? (A) 5,400 dollars (B) 60,000 dollars (C) 540,000 dollars (D) 600,000 dollars (E) 54,000 dollars.

13. Choose the correct statement: (A) Miss Liu worked in the sightseeing hotel. She quits this job when she gets married. Thus, the unemployment rate in Taiwan will decline. (B) Miss Lee worked in the sightseeing hotel. She quits this job when she gets married. Thus, the unemployment rate in Taiwan will be unchanged. (C) Other things being equal, when we count the voluntary soldier into the labor force in Taiwan, the unemployment rate in Taiwan will increase. (D) If there are 10,000 persons applying to the admittance examination on the Taiwan Power Company, which desires to include only 100 new personnel. Thus, we can infer that the unemployment status is serious in Taiwan. (E) If there are 10,000 persons applying to the admittance examination on the China Steel Company, which desires to include only 100 new personnel. Thus, we cannot infer that the unemployment status is serious or not in Taiwan.

14. If the price level in the United States is 110, the price level is 120 in Taiwan, and the nominal exchange rate is 20NT per dollar, what is the real exchange rate from the Taiwan's perspective? (A) 25.3 (B) 26.5 (C) 27.5 (D) 28.6 (E) 18.3

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