practice - Exam: 208 Mid-Term Random Practice: Questions...

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Exam: 208 Mid-Term Random Practice: Questions selected randomly by computer from Chapters 1 through 6 of text's test bank - instructor has not looked at the questions selected. Name James Q. Random___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose a scientific breakthrough leads to a lower-cost method of producing battery-operated cars in Canada. The likely effect would be to move Canada's current production A) possibilities boundary outward. B) above the level of U.S. production. C) to a point inside its new production possibilities boundary. D) to a point beyond its new production possibilities boundary. E) possibilities boundary inward. The table below illustrates that, in one day, Tristan can produce either 12 fishing lures or mow 3 lawns, while Thomas can produce either 6 fishing lures or mow 6 lawns. Fishing lures Mowed lawns Tristan 12 3 Thomas 6 6 TABLE 1 - 1 2) Refer to Table 1-1. If Tristan and Thomas want to maximize their joint output from one day of work, how should they specialize their production? A) Tristan produces 6 lures; Thomas produces 6 lures B) Tristan produces 12 lures; Thomas produces 6 mowed lawns C) Tristan produces nothing, Thomas produces 6 lures and 6 mowed lawns D) Tristan produces 3 mowed lawns; Thomas produces 6 mowed lawns E) Tristan produces 6 lures and 3 mowed lawns 3) Money facilitates trade and specialization by A) increasing investment. B) increasing the value of gold. C) reducing the shift of resources between uses. D) providing employment for coin makers. E) eliminating the need for barter. Figure 1 - 1 4) Refer to Figure 1-1. For the government, the opportunity cost of one search and rescue helicopter is A) 100 kilometres of highway repair. B) 200 kilometres of highway repair. C) 50 kilometres of highway repair. D) 150 kilometres of highway repair. E) 0 kilometres of highway repair. 5) Labour services are bought and sold in a A) factor market. B) product market. C) foreign exchange market. D) mixed market. E) goods market. 6) Because resources are scarce, individuals are required to A) use resources inefficiently. B) make choices among alternatives. C) improve production but not distribution. D) improve distribution but not production.
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This note was uploaded on 04/17/2008 for the course ECON 208 taught by Professor Dickenson during the Fall '07 term at McGill.

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practice - Exam: 208 Mid-Term Random Practice: Questions...

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