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ECON 1BB3 Study Guide - Quiz Guide: Comparative Advantage, Peanut Butter, The Wall Street Journal

13 pages130 viewsFall 2013

Department
Economics
Course Code
ECON 1BB3
Professor
Hannah Holmes
Study Guide
Quiz

This preview shows pages 1-3. to view the full 13 pages of the document.
PracticeTest#1
1
ECONOMICS 1BB3
Introductory Macroeconomics
Sections C01, C02
This examination paper includes 13 pages including the title page and 43 questions. You are re-
sponsible for ensuring that your copy of the paper is complete. Please bring any discrepancy to
the attention of your invigilator.
Special Instructions:
Only the McMaster Standard (Casio - FX991) Calculator may be used. This test paper
must be returned along with the scan sheet. Write your name and student number on the
test paper and the scan sheet. If you are writing in the wrong room, you will lose 3 points
off your test score. If you are wearing a baseball cap, please turn it so the peak is in the
back. Please turn off all cell phones. There should be no electronic devices at your seat
other than a calculator. All books and bags must be left at the front of the room. You
will need your student ID card at your desk, along with your calculator, a pencil, and a pen.
If you complete the short answer section in pencil your test will not be re-graded if there is
a dispute. Use an HB pencil to fill in the scan sheet. If a TA has to grade your scan
sheet by hand, you will lose 3 points off your test score. You cannot fill in the version
number of your test paper on the scan sheet.
Part A: Multiple Choice Questions: There are 40 multiple choice questions. Please record
your answers on the scan answer sheet provided.
Part B: Short Answer Questions: There are 3 short answer questions. Please record your
answers on the test paper.
Part A – Multiple Choice
/40
Part B – Short Answer
/15
Total
/55
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OMR EXAMINATION - STUDENT INSTRUCTIONS
NOTE: IT IS YOUR RESPONSIBILITY TO ENSURE THAT THE ANSWER SHEET IS
PROPERLY COMPLETED: YOUR EXAMINATION RESULT DEPENDS UPON
PROPER ATTENTION TO THESE INSTRUCTIONS.
The scanner, which reads the sheets, senses the shaded areas by their non-reflection of light. A
heavy mark must be made, completely filling the circular bubble, with a HB pencil. Marks made
with a pen or felt-tip marker will NOT be sensed. Erasures must be through or the scanner may
still sense a mark. Do NOT use correction fluid on the sheets. Do NOT put any unnecessary
marks or writing on the sheets.
1. Print your name, student number, course name, section number and the date in the
space provided at the top of Side 1 (red side) of the form.
2. Mark your student number in the space provided on the sheet on Side 1 and fill in
the corresponding bubbles underneath.
3. Mark only ONE choice from the alternatives (1,2,3,4,5, or A,B,C,D,E) provided
for each question. If there is a True/False question, enter response of 1 (or A) as
True, and 2 (or B) as False. The question number is to the left of the bubbles.
Make sure that the number of the question on the scan sheet is the same as the
question number on the test paper.
4. Pay particular attention to the Marking Directions on the form.
5. Begin answering questions using the first set of bubbles, marked “1".
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Part A - Multiple Choice (40 points)
Identify the choice that best completes the statement or answers the question. Answer on the scan sheet provided.
Table 3-4
Labour Hours Needed to Make
One Unit of:
Amount Produced in 24 Hours:
Baskets Birdhouses Baskets Birdhouses
Alberta 6 2 4 12
Manitoba 3 4 8 6
1. Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will be
exported?
a. Alberta will export baskets and Manitoba will export birdhouses.
b. Alberta will export birdhouses and Manitoba will export baskets.
c. Alberta will export neither good and Manitoba will export both goods.
d. Alberta will export both goods and Manitoba will export neither good.
2. Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will
happen?
a. No one in either province will gain.
b. Some individuals within both provinces will be made worse off.
c. All individuals in both provinces will gain.
d. One province will be better off and the other province will be worse off.
3. Refer to Table 3-4. What is the opportunity cost of 1 basket for Alberta?
a. 4 birdhouses.
b. 1/3 birdhouse.
c. 3 birdhouses.
d. 1 birdhouse.
4. Refer to Table 3-4. Which of the following is correct?
a. Alberta has an absolute advantage in baskets and Manitoba has an absolute advantage in
birdhouses.
b. Alberta has an absolute advantage in neither good and Manitoba has an absolute advantage
in both goods.
c. Alberta has an absolute advantage in both goods and Manitoba has an absolute advantage in
neither good.
d. Alberta has an absolute advantage in birdhouses and Manitoba has an absolute advantage in
baskets.
5. Holding all else constant, what will result from a higher price for ski lift tickets?
a. decreased ski sales
b. decreased supply of ski resorts
c. increased number of skiers
d. decreased demand for other winter recreational activities
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