Study Guides (238,584)
Canada (115,228)
ECON 208 (51)

ECON 208 sample midterm

6 Pages
Unlock Document

McGill University
Economics (Arts)
ECON 208
Wendy Dickinson

Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of theactual examination The professor did NOT review these questionsMULTIPLE CHOICEChoose the one alternative that best completes the statement or answers the questionSuppose that in a twogood world the price of the first good has increased from 300 to 400 and the price of1the second good has increased from 150 to 200 The relative price of the first goodAhas fallenBhas risenCremained constantDcannot be determined from the above dataEis completely unrelated to the price of the second goodTopic33b relative prices2Which of the following statements would you expect to be true about Tshirts and clothingAClothing has a higher price elasticity of demand because it is a necessityCompared with clothing Tshirts have a lower price elasticity of demand because they are specificallyBdefinedBecause Tshirts are clothing but not all clothing is Tshirts Tshirts would have a lower price elasticityCof demand than clothingDClothing has a lower price elasticity of demand because it is more broadly definedETshirts would have the same price elasticity of demand as clothingTopic41a price elasticity of demand3One measure of market inefficiency isAhow far quantity exchanged deviates from equilibriumBthe difference between total economic surplus and deadweight lossCthe size of the economic surplusDhow far market price deviates from equilibriumEthe size of the deadweight lossTopic54a market efficiency and economic surplus4Which of the following statements is NOT correctAEconomic statements cannot be tested because human decisions involve free willBNormative statements cannot be tested by the scientific methodEconomists test their theories by confronting the predictions of their theories with the evidence drawnCfrom the real worldDExposing them to empirical evidence can best test positive statementsEconomic predictions will be fulfilled when their underlying hypotheses conform to actual humanEbehaviourTopic23 testing theoriesIn general and in the absence of market failures economic surplus will be maximized and economic efficiency5will be achievedAwhen the government is able to impose an equilibrium priceBwhen consumers and producers can agree on the most advantageous division of economic surplusCwhen resources are allocated such that production of the good is maximizedDwhen the government successfully determines what is best for society as a wholeEin a competitive market where price is free to achieve its marketclearing equilibrium levelTopic54a market efficiency and economic surplus1
More Less

Related notes for ECON 208

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.