Final Spring 2014 - Exam Name MULTIPLECHOICE. 1 :tuition:\$5,000,roomandboard:\$3,000,books :\$500.Further,duringtheterm,youcanonlywor

# Final Spring 2014 - Exam Name MULTIPLECHOICE. 1...

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ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1) Suppose your expenses for this term are as follows: tuition: \$5,000, room and board: \$3,000, booksand other educational supplies: \$500. Further, during the term, you can only work part-time andearn \$4,000 instead of your full-time salary of \$10,000. What is the opportunity cost of going tocollege this term, assuming that your room and board expenses would be the same even if you didnot go to college?A) \$5,500B) \$8,500C) \$11,500D) \$14,5001)Table 2-3GeorgeJackLawns Mowed106GardensCultivated54Table 2-3 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawnsor cultivating gardens.2)Refer to Table 2-3.What is Georgeʹs opportunity cost of mowing a lawn?2)3) ________ a nationʹs production possibilities frontier represents economic growth.3)4) The production possibilities frontier shows4)5) In January, buyers of gold expect that the price of gold will fall in February. What happens in thegold market in January, holding everything else constant?A) The quantity demanded increases.B) The quantity demanded decreasesC) The demand curve shifts to the right.D) The demand curve shifts to the left.5)1
Figure 3-36)Refer to Figure 3-3.The figure above shows the supply and demand curves for two markets: themarket for original Michelangelo sculptures and the market for Ray Ban sunglasses. Which graphmost likely represents which market?6)Figure 3-1