Writ 1 - Version 1 (solution)

Writ 1 - Version 1 (solution) - Department of Social...

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Department of Social Sciences United States Military Academy West Point, New York 10996 SS201/251 Economics, Term 06-02 Cadet ID # __________________________ Writ #1, Version 1, SOLUTION Section: __________ 50 points Please ensure you have a complete writ. The writ consists of this cover sheet plus 4 pages of questions. You have 40 minutes to complete your work. Question Topic Points Score 1 Multiple Choice 20 2 Equilibrium 10 3 Market Clearing Story 10 4 Gains from Trade 10 Total 50 Grade: ____________ % Letter Grade: ____________
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Cadet ID Number:_____________________ Section: ____, ___ Hour SS201/251 Principles of Economics Writ 1 (50 pts; 40 min) Part 1. Multiple Choice (20 points) . Read the following questions carefully and circle the ONE best answer to each question. (10 questions, 2 points each). 1. (2 pts) . The price of tomatoes at a local market will decrease because of the following event: a. A hailstorm that destroys one half of the tomatoes just ready for harvest b. A news report of a medical study suggesting tomatoes cure certain illnesses c. A summer of prime tomato-growing weather resulting in a large harvest of tomatoes d. A strike by farm workers resulting in higher wages for harvesting tomatoes 2. (2 pts) . The production possibilities curve illustrates the basic principle that a. an economy’s capacity to produce depends on its labor laws. b. if all resources of an economy are in use, more of one good can be produced only if less of another is produced. c. an economy will automatically seek that output at which all of its resources are employed. d. no opportunity costs exist in production. 3. (2 pts) . Which of the following policy options would be most likely to shift out a country’s production possibility frontier? a. A more relaxed policy on immigration b. Tax credits (incentives) for firms that invest in worker training programs c. Higher minimum wage laws. d.
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This note was uploaded on 04/17/2008 for the course ECON SS201 taught by Professor Evans during the Spring '08 term at West Point.

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Writ 1 - Version 1 (solution) - Department of Social...

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