Sample Quiz 1 - Sample Quiz 1 Please note: The material...

Sample Quiz 1
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Sample Quiz 1 Please note: The material you’re responsible for on the quiz may differ slightly from the material in this sample. This is last year’s version. You’re responsible for everything up through and including p. 69 in the Mankiw text. I won’t ask about supply or equilibrium. I also recommend you review your D2L quiz. Answers to this quiz are at the bottom. Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. For society, a good is not scarce if a. at least one individual in society can obtain all he or she wants of the good. b. firms are producing the good at full capacity. c. all members of society can have all they want of the good. d. those who have enough income can buy all they want of the good. ____ 2. What you give up to obtain an item is called your a. opportunity cost. b. explicit cost. c. true cost. d. direct cost. ____ 3. For which of the following individuals would the opportunity cost of going to college be highest? a. a promising young mathematician who will command a high salary once she earns her college degree b. a student with average grades who has never held a job c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree d. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball ____ 4. A rational decisionmaker takes an action if and only if a. the marginal benefit of the action exceeds the marginal cost of the action. b. the marginal cost of the action exceeds the marginal benefit of the action. c. the marginal cost of the action is zero. d. the opportunity cost of the action is zero. ____ 5. A direct or positive relationship exists between a country's a. productivity and its standard of living. b. amount of government spending and its productivity. c. total population and its average citizen’s income. d. rate of population growth and the extent of its trade with other countries. ____ 6. To increase living standards, public policy should a. ensure that workers are well educated and have the necessary tools and technology. b. make unemployment benefits more generous. c. move workers into jobs directly from high school. d. ensure a greater degree of equity, taking all income-earners into account. Table 3-1 Labor Hours Needed to Make 1 Pound of: Pounds produced in 40 hours: Meat Potatoes Meat Potatoes Farmer 8 2 5 20
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Rancher 4 5 10 8 ____ 7. Refer to Table 3-1 . The opportunity cost of 1 pound of meat for the farmer is a. 1/4 hour of labor. b. 4 hours of labor. c. 4 pounds of potatoes. d. 1/4 pound of potatoes. ____ 8. Travis can mow a lawn in two hours or he can trim a tree in one hour. Ricardo can mow a lawn in three hours or he can trim a tree in two hours. a.
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