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sample%20final%20Wi08

# sample%20final%20Wi08 - Economics 200 Professor Mumy Sample...

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Economics 200 Professor Mumy Sample Final (A very rough guide that should not be taken as an exact indicator of the type and difficulty of questions on the actual final exam). ANSWERS ARE AT THE END. 1. A company produces 99 units of a good for \$316 or produces 100 units of the same good for \$320. Its marginal cost of the 100th unit a) is \$3.20. b) is \$4. c) is \$320. d) cannot be calculated with this information. 2. When China builds a dam using few machines and a great deal of labor, it is answering the ______ question. 3. The term used to emphasize that making choices in the face of scarcity involves a cost is Table 3.1 -------------------------------------------------------------- Point Production of X Production of Y ----------------------------------------------------------- a 0 4 b 4 36 c 8 28 d 12 16 e 16 0 ---------------------------------------------------------- 4. Refer to Table 3.1. The opportunity cost of increasing the production of Y from 16 to 36 units is

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5. The fact that individual productive resources are NOT equally useful in all activities a) implies that a production possibility frontier will be bowed outward. b) implies that gain from specialization and trade is unlikely. c) follows from the law of demand. d) implies a linear production possibility frontier. 6. Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. There can be gains from exchange 7. Which of the following definitely causes a fall in the equilibrium price? Table 4.3 ----------------------------------------------------------------------- Quantities demanded and supplied in equilibrium before and after drought strikes potato farmers ----------------------------------------------------------------------- Potatoes Hamburgers Rice before after before after before after ------------------------------------------------------------------------- Region 1 100 30 50 20 3 50 Region 2 10 5 4 50 50 60 -------------------------------------------------------------------------- 8. For consumers, in Region 1 in Table 4.3, potatoes and hamburgers are
9. If the good for which the Figure above is drawn, is a normal good and income rises, then the new equilibrium quantity a) is less than 300 units. b) is 300 units. c) is more than 300 units. d) could be less than, equal to, or more than 300 units.

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sample%20final%20Wi08 - Economics 200 Professor Mumy Sample...

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