Sample Midterm

Sample Midterm - UCSD Economics 3 Winter 2008 MULTIPLE...

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UCSD Economics 3 Winter 2008 Sample Midterm 1 1 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ______ 1. An incentive A) could be either a reward or a penalty. B) is the opposite of a tradeoff. C) could be a penalty but could not be a reward. D) could be a reward but could not be a penalty. ______ 2. Human capital is A) all capital owned by individuals or corporations, but not by governments. B) machinery that meets or exceeds federal safety standards for use by humans. C) all capital owned by individuals, but not by corporations or governments. D) the skill and knowledge of workers. ______ 3. The opportunity cost of something you decide to get is A) the lowest valued alternative you give up to get it. B) all the possible alternatives that you give up to get it. C) the amount of money you pay to get it. D) the highest valued alternative you give up to get it. ______ 4. An increase in the nation's capital stock will A) cause a movement along the PPF up and to the left. B) cause a movement along the down and to the right. C) shift the outward. D) move the nation from producing within the to producing at a point closer to the . Country A Country B Good X (units of ) Good Y (units of ) Good (units of ) Good (units of ) 0 16 0 12 2 12 2 9 4 8 4 6 6 4 6 3 8 0 8 0 ______ 5. In the table above, country A is producing 4 units of and 8 units of and country B is producing 4 units of and 6 units of . Regarding the production of good A) country B has a comparative advantage. B) country A has an absolute advantage. C) country B has an absolute advantage. D) country A has a comparative advantage.
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UCSD Economics 3 Winter 2008 Sample Midterm 1 2 ______ 6. In a world lacking property rights, it would be ________ to realize the gains from trade and there would be ________ specialization. A) harder; less B) harder; more C) easier; more D) easier; less ______ 7. If the price of a candy bar is $1 and the price of a fast food meal is $5, then the A) money price of a fast food meal is 1/5 of a candy bar. B) money price of a candy bar is 1/5 of a fast food meal. C) relative price of a fast food meal is 5 candy bars. D) relative price of a candy bar is 5 fast food meals. ______ 8. Which of the following is consistent with the law of demand? A) An increase in the price of a DVD causes an increase in the quantity of DVDs demanded. B) An increase in the price of a soda causes a decrease in the quantity of soda demanded. C) A decrease in the price of juice causes no change in the quantity of juice demanded. D)
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This test prep was uploaded on 04/15/2008 for the course ECON 3 taught by Professor Peters during the Winter '07 term at UCSD.

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Sample Midterm - UCSD Economics 3 Winter 2008 MULTIPLE...

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