ECON 1B03 Midterm: Test 1 2011 Fall v2.pdf
15 Dec 2012
School
Department
Course
Professor
46
ECON 1B03 Full Course Notes
Verified Note
46 documents
Document Summary
Answer all questions on the scan sheet using hb pencil. Hand in the scan and this sheet separately. Identify the choice that best completes the statement or answers the question. Page 3 of 9: refer to figure 2-1 on the previous page. Which arrow shows the flow of goods and services: c, a, d, b, decreasing opportunity cost, constant opportunity cost, none of the above are correct. increasing opportunity cost, production possibilities frontiers are usually bowed outward. This is due to: suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 72 units of food and 28 machines. This year, it is producing 75 units of food and 30 machines. The economy can produce at which point or points: d, d, c, a, b, d, e, d, e, b, d, e. Which point or points are inefficient: a, c, d, c, c, d.
