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ECONOMIC 1010

5 Pages
181 Views

Department
Economics
Course Code
ECON 1000
Professor
George Georgopoulos

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Description
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which one of the following is a part of the opportunity cost of attending college for an 1) _______ individual who lives on their own? A) cost of tuition B) cost of clothing C) cost of transportation D) cost of meals E) cost of renting movies 2) Sally has to decide whether to study for her economics test or her accounting test. If she chooses 2) _______ to study for accounting, the value of studying economics is A) not comparable to the value of studying economics. B) the opportunity cost of studying accounting. C) the future lost wages that will occur if she fails her accounting exam. D) equal to the value of studying accounting. E) greater than the value of studying accounting. 3) Which of the following is a positive statement? 3) _______ A) Low rents will restrict the supply of housing. B) Government should control the rents that apartment owners charge. C) Housing costs too much. D) Owners of apartment buildings ought to be free to charge whatever rent they want. E) High interest rates are bad for the economy. Use the table below to answer the following question(s). Table 2.2 Production Possibilities 4) Refer to Table 2.2. According to this production possibilities frontier, 4) _______ A) a combination of 6 butter and 1 gun would not employ all resources. B) the opportunity cost of producing guns decreases as more guns are produced. C) a combination of 0 butter and 4 guns is attainable. D) resources are equally useful in all activities. E) the opportunity cost of producing guns increases as more guns are produced. 5) The slope of the production possibilities frontier curve indicates its 5) _______ A) absolute advantage. B) preferences. C) marginal benefit. D) comparative advantage. E) opportunity cost. Use the figure below to answer the following question(s). Figure 2.4 6) In Figure 2.4, the curve labelled a is the ________ curve and the curve labelled b is the ________ 6) _______ curve. A) production possibility; trade line B) marginal cost; trade line C) marginal cost; marginal benefit D) marginal benefit; marginal cost E) marginal benefit; trade line 7) If the government passes a new law that makes retirement mandatory at age 60, this will lead to 7) _______ a A) rise in unemployed resources, and a movement inward from the production possibilities frontier. B) shift outward in the production possibilities frontier, and those industries that are labour-intensive (use a lot of labour relative to other factors of production) will have larger rises in their production possibilities. C) shift inward in the production possibilities frontier. D) shift outward in the production possibilities frontier, with all industries equally affected. E) shift outward in the production possibilities frontier, and those industries that are capital-intensive (use a lot of capital relative to other factors of production) will have larger rises in their production possibilities. 8) Any two individuals will gain from exchange 8) _______ A) unless they have the same opportunity costs for producing all goods. B) unless they have different opportunity costs for producing all goods. C) if each specializes in the production of the good for which he/she has the higher opportunity cost. D) unless they have the same absolute advant
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