EXAM_1_SP2007

EXAM_1_SP2007 - EXAM 1 ECO 111 - Principles of Economics...

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EXAM 1 ECO 111 - Principles of Economics Spring 2007 Instructions: 1. Write all answers in your blue book. 2. Write answers completely but concisely and show all work where applicable. Progress made toward a correct answer may receive partial credit, however true but irrelevant will not receive any credit. True/False and Explain (8 points each): Indicate whether each statement below is true or false and justify your answer in at least 2 sentences. 1. The problem known as the “tragedy of the commons” occurs with public goods because these goods are excludable. NOT RELEVANT TO FA2007 2. Joey can produce 16 toy cars or 12 toy trains in a day, but Ross can produce 15 toy cars or 18 toy trains. Joey has absolute advantage in producing toy trains, but Ross has comparative advantage in producing cars. 3. Consumer surplus in the market below, where there is a tax in the amount of P 3 -P 2 , would be represented by the area DEF. NOT RELEVANT TO FA2007 4. If the number of buyers in a market increases and a technological
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This test prep was uploaded on 04/14/2008 for the course ECO 111 taught by Professor Fox-kean during the Spring '08 term at Austin College.

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EXAM_1_SP2007 - EXAM 1 ECO 111 - Principles of Economics...

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