Study Guides (238,072)
Canada (114,906)
Economics (335)

Econ Midterm 1 2008

22 Pages
Unlock Document

Western University
Economics 1021A/B
P Ferguson

Version 222 THE UNIVERSITY OF ONTARIO LONDON CAKADA Michael Parkin ECONo:\ncs 020-002/004 October 4, Z008 MIDTERM! INSTRUCTIONS: I. TIlteXam illation begins 4:00 p.m. and ends at6:00 p.m. Check that your ex:unin:ltlon pap.:-rcontains 21 pc.ges. _'. UE-ea BLACK PENCIL to compl.:-t:(l)lScantron Fonn. Prillt youNAME and completc your SIGNADJRE. Enter your STUDENT NUMBER. Euter your SECTION NIDIBER, vvhich is either 002 or 004. 4. Please hand ilScantron Form only. 5. You may use a regular calculator but you may not use a progranmJwle or graphing calculator. 6. Your cell pbone must be switched off and teft hI your bag at the front oflhe exam room. NOTE: QUESTIONS ARE PRINTED AT THE BACK OF EACH PAGE r------ --------- Economics 020 - 002/004 Mid-term I October 4,2008 l\fULTIPLE CHOICE. Choose theone aJternatiye that best completes the statement or answers the question. I) In a world characterized by scarcity Al people must make choices among aLternatives. B) we ueed not sacrifice to obtain v,hatwe want. C) thc opportunity cost of most goods is infinite. D) all goods are free. E) individuals need not ,,"ork to obtain goods. 2) '\Thich of the follo\\ing would be considered a microeconomic rapic? A) the determination of aggregate income B) the reasons for a decline in the rate of unemployment C) the effect of the government budget deficit on rising prices D) the study of how wages are set forautomotive workers E) the cause of unemployment in the economy 3) The reason ,\'hy a hockey star earns$3 million annually while a teacher earns 5135,000annually is an example of an economy facing the question. A) "how" B)"for whom" C) "what" D) "where!' E) "when" 4) Mildred will choose to eat a seventh pizza sEce jf A) the total benefit of all seven slices is greater than their total cost. B) the marginal benefit from the seventh slice is greater than jts marginal cost. e) the marginal benefit from the seyenth slice is less man its marginal cost. D) the total benefit of all seven slices is less [han their toral cost. E) the price of the seventh slice is less than the price of the sixth slice. B-1 r -- 5) The problem of scarcity exists A) in all economics. B) only when people spend all (If their inCDmes, C) only in economies that rely on the c0nmland sysTem. D) now but will be eliminated with econ(lmic growth. E) only ineconomies that allocate resources by market price. 6) "The rich face higher income tax rates than the poor, which is not good since it is the rich who -----provide jobs for the poor." This 1S <11example of A) a nOfD1mivestatement B) a theoretical statemem. C) a negmive statement. D) a positive statement. E) a descriptive statement. 7) iVhieh one of the tQllo\ving concepts is not illustrated by a production possibilities fromier? A) the tradeoff between producing one good versus another B) opportunity cost C) monetary exchange D) scarcity E) attainable and unattainable points 8) 1fHarold can increase [he production of good X without decreasing the production of any other good., then Harold A) musT prefer good X to good. B) is producing outside his production possibilities frontier. C) is producing inside his production possibilities fi-ontier. D) must have a linear production possibilities frontier. E) is producing on his production possibilities fronrier. B-2 r----- 9) On a diagram of a producTion possibilities frontier, the opportunity cost of the good measured cm me-x-axis is represented by A) a point on the vertical axis. BJ me x-axis intercept. C) a point on the hOrIzontal axis. D) a ray through the origin. E) the-slope of the production possibilities frontier. Use thefigure below to 0l1511'ethe/ollowilig question. a " 20 8 " 15 10 ---------- c 5 e 0 Goad X FiguTf:1 10) Rdcr [0the production possibilities frontier in Figure 1. Thc opporrunity cost of inereasmg produuion of good Y is &'Teates[when we move from A) b to a B) e tod C)ctob D) dto c E) The opportunity cost is me same in eaeh case. B-3 r- ---- --------
More Less

Related notes for Economics 1021A/B

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.