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Midterm

Sample Midterm Exam ECON 1000

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Department
Economics
Course
ECON 1000
Professor
All Professors
Semester
Fall

Description
This is a sample Multiple-Choice Exam for you to familiarize yourself with what the Midterm Exam will look like. This sample exam has 25 questions. The actual midterm exam will have 50 questions. In my judgment the sample exam is a bit harder than the actual midterm exam. Do not take the topics covered in this Sample Exam as indicating what will and what will not be covered in the exam. Look at the Midterm Help Page for comments on what will be omitted from the content of chapters 1,2,3,4,5 & 5. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The change in the value of the variable measured on the y- axis divided by the change in the value of the variable measures on the x-axis is 1) _______ A) decreasing. B) increasing. C) a maximum or minimum. IGNORE THIS QUESTION – NONE LIKE THIS ON TEST D) slope. E) constant. 2) The inescapable economic fact is that 2) ____D__ A) unions are always exploiting firms. B) there are unlimited resources, and we just have to figure out how to allocate them. C) capitalists and unions cannot work together. D) there are unlimited wants and limited resources. E) capitalists are always exploiting the workers. 3) The depletion of fish stocks in Eastern Canada, with its accompanying unemployment, will lead to a 3) _______ A) shift outward of the existing production possibilities frontier. B) shift inward of the existing production possibilities frontier plus a movement to a point inside the new production possibilities frontier. C) shift inward of the existing production possibilities frontier. D) movement from the existing production possibilities frontier to a point inside the production possibilities frontier. E) movement along the existing production possibilities frontier to a point of less fish production. Use the figure below to answer the question 4. Figure 2.2.1 4) In Figure 2.2.1, the curve labelled A is the ________ curve and the curve labelled B is the ________ curve. 4) _______ A) marginal cost; trade B) production possibilities; trade C) marginal benefit; marginal cost D) marginal cost; marginal benefit E) marginal benefit; trade 5) Which of the following quotations illustrates dynamic comparative advantage? 5) _______ A) "If the firm reorganized its production process, it could produce more widgets and more gadgets." B) "The firm should sell more gadgets, even if it means less widget sales." C) "If the firm invests more in capital equipment, it can expand sales next year." D) "The firm has been able to lower costs due to its extensive experience in building widgets." E) "The more and more gadgets the firm produces, the bigger the fall in widget production." Use the following Table to answer question 6. Table 2.4.1 The planets of Vulcan and Romulus each produce goods X and Y. The following table gives points on their production possibilities frontiers. 6) Refer to Table 2.4.1. Which one of the following is true? 6) ____D__ A) Vulcan has a comparative advantage in the production of X. B) Vulcan should specialize in the production of X. C) Romulus has both an absolute advantage and a comparative advantage in the production of X. D) Romulus has a comparative advantage in the production of X. E) Romulus has both an absolute advantage and a comparative advantage in the production of Y. Use the figure below to answer question 7. Figure 2.1.3 7) Refer to the production possibilities frontier in Figure 2.1.3. Which one of the following movements requires the largest opportunity cost of increased X? 7) ____E__ A) B to C B) A to B C) C to D D) D to E E) The opportunity cost is the same in each case. Use following table to answer question 8. Table 3.1.1 8) Refer to Table 3.1.1. Between 2007 and 2008, the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________. 8) ___A___ A) fell; fell B) fell; stayed constant C) rose; fell D) rose; rose E) fell; rose Use the figure below to answer question 9. Figure 3.2.1 9) Which one of the following statements best characterizes point B in Figure 3.2.1? 9) ___C___ A) Producers would be unwilling to sell the 9,000th apple for less than $0.50. B) At a price of $0.50, consumers will be unwilling to buy any apples. C) The most that consumers would be willing to pay for the 9,000th apple is $0.50. D) At point B, the market is in equilibrium. E) At a price of $0.50, there will be an apple shortage. Use the figure below to answer question 10. Figure 3.5.1 10) If the demand curve is in Figure 3.5.1, 10) _A__ A) the equilibrium price is and the equilibrium quantity is . B) a rise in price will shift the demand curve to . C) the equilibrium price is and the equilibrium quantity is . D) price will rise. E) there is a shortage in the amount of - . 11) Which one of the following will shift the supply curve of good X leftward? 11) __D___ A) a technological improvement in the production of X B) a situation where quantity demanded exceeds quantity supplied C) a decrease in the wages of workers employed to produce X D) an increase in the cost of machinery used to produce X E) a decrease in the cost of capital used to produce X 12) Some sales managers are talking shop. Which one of the following quotations refers to a leftward shift of the demand curve? 12) __D___ A) "Since our competitors raised their prices, our sales have doubled." B) "We decided to cut our prices, and the increase in our sales has been remarkable." C) "The Green movement has sparked an increase in our sales of biodegradable products." D) "It has been an unusually mild winter; our sales of wool scarves are down from last year." E) None of the above. 13) Demand will be more elastic the 13) ___C__ A) lower the income level. B) higher the income level.
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