ECO 201 Midterm: ECO 201 Miami U e201mt1Fall 1sp16 with key
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ECO201: PRINCIPLES OF MICROECONOMICS
FIRST MIDTERM EXAMINATION
Prof. Bill Even
March 7, 2016
FORM 1
Directions
1. Fill in your scantron with your unique-id and the form number listed on this page. Proper
completion of this step of the directions is worth the equivalent of one question.
2. There are 41 multiple choice questions. All answers should be recorded on the scantron
sheet. No credit will be given for answers placed elsewhere. Record your answers on the
exam as well because this will be the record of your answers which you can use to determine
which questions you got right or wrong on the exam.
3. A calculator is allowed. Cell phones or any other electronic device are prohibited. Access to
any electronic device other than a calculator will be treated as a case of academic dishonesty.
4. You have until the end of the class period to finish the exam and complete the scantron.
Additional time may be purchased at a price of 5 percentage points per minute.
5. When you finish the exam, turn in your scantron to the proctor and place your exam in
the pile that corresponds to the row that you sit in for class.
P a g e | 2
Suppose there is a small island economy with 20 Redhawks and 20 Bobcats. The
production possibilities curves for one Redhawk and one Bobcat are given below.
1) The absolute advantage in fish is held by the group of _____ and the absolute advantage in
berries is held by the group of _____.
a. Redhawks; Bobcats b. Redhawks; Redhawks
c. Bobcats; Redhawks d. Bobcats; Bobcats
2) The comparative advantage in fish is held by the ______ and the comparative advantage in
berries is held by the ______.
a. Redhawks; Bobcats b. Redhawks; Redhawks
c. Bobcats; Redhawks d. Bobcats; Bobcats
3) If the economy is organized efficiently and produces 150 bushels of berries per day, what is
the maximum amount of fish it can produce in a day?
a. 200 b. 300 c. 400 d. none of the above.
Number of fish
Bushels of berries
10
15
20
Redhawk
Bobcat
5
P a g e | 3
Suppose there is a small island economy with 20 Redhawks and 20 Bobcats. The
production possibilities curves for one Redhawk and one Bobcat are given below.
4). Suppose the economy is operating on its production possibilities frontier and producing 150
bushels of berries per day. If it increases berry production by 1 bushel, the opportunity cost of
the extra bushel of berries will be _____ fish.
a. 1/2 b. 2 c. 3 d. 1/3
5). For the economy described, a combination of 250 berries and 150 fish would be:
a. productively inefficient
b. productively efficient
c. impossible to produce without more resources or better technology
d. it is impossible to determine whether it is productively efficient without more information.
Number of fish
Bushels of berries
10
15
20
Redhawk
Bobcat
5
Document Summary
Directions: fill in your scantron with your unique-id and the form number listed on this page. Proper completion of this step of the directions is worth the equivalent of one question: there are 41 multiple choice questions. All answers should be recorded on the scantron sheet. No credit will be given for answers placed elsewhere. Record your answers on the exam as well because this will be the record of your answers which you can use to determine which questions you got right or wrong on the exam: a calculator is allowed. Cell phones or any other electronic device are prohibited. Access to any electronic device other than a calculator will be treated as a case of academic dishonesty: you have until the end of the class period to finish the exam and complete the scantron. Suppose there is a small island economy with 20 redhawks and 20 bobcats.
