ECO 201 Midterm: ECO 201 Miami U mt1f1f15 with key
YOUR NAME _________________________________________ Seat ______ Initials_______
ECO201: PRINCIPLES OF MICROECONOMICS
FIRST MIDTERM EXAMINATION
Prof. Bill Even
October 6, 2015
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 40 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.
P a g e | 2
To answer the next 4 questions, suppose there is a small island economy with 10 Hawkeyes and
30 Buckeyes. Each Hawkeye is capable of producing either 5 bushels of berries or 15 fish in a
given day. Each Buckeye can produce either 4 bushels of berries or 8 fish in a given day.
Both Hawkeyes and Buckeyes can also split their time across activities to produce a mix of
berries or fish in a given day.
1) The comparative advantage in berries is held by the ______ and the comparative advantage in
fish is held by the ______.
a. Buckeye; Buckeye
b. Buckeye; Hawkeye
c. Hawkeye; Buckeye
d. Hawkeye; Hawkeye
2) If the economy is organized efficiently and produces 100 bushels of berries, what is the
maximum amount of fish it can produce in a day?
a. 150
b. 190
c. 270
d. none of the above
3. If the economy is organized efficiently and produces 100 bushels of berries per day, the
opportunity cost of an additional bushel of berries would be:
a. 2 fish
b. 3 fish
c. .5 fish
d. .33 fish
4. 3. If the economy is organized efficiently and produces 100 bushels of berries per day,
Hawkeyes will produce ______ and Buckeyes will produce ______.
a. fish and berries; only fish
b. only berries; fish and berries
c. only fish; fish and berries.
d. only fish; only berries
P a g e | 3
5. Which of the following would cause the PPF to shift to right as illustrated in the diagram
above?
a. discovery of a better way to catch fish.
b. discovery of a better way to gather berries
c. more workers.
d. each of the above would cause the PPF to shift as illustrated.
6) Over the past year, there has been a sharp decrease in the price of oil. Which of the
following could explain this?
a. a decrease in the price of a complement in consumption for oil.
b. a decrease in the price of a complement in production to oil.
c. an increase in the price of a substitute in production for oil.
d. none of the above.
fish
berries
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 40 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. Additional time may be purchased at a price of 5 percentage points per minute.
