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. a) "what" b) "how" c) "for whom" d) "scarcity" 3. The term used to emphasize that making choices in the face of scarcity involves a cost is a) substitution cost. b) opportunity cost. c) utility cost. d) accounting cost. 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 a) 4 units of X. b) 8 units of X. c) 10 units of X. d) 12 units of X.
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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 a) if Agnes specializes in the production of X and Brenda in Y. b) if Agnes specializes in the production of Y and Brenda in X. c) only if Agnes becomes faster at producing X. d) only if Brenda becomes faster at producing X or Y. 7. Which of the following definitely causes a fall in the equilibrium price? a) An increase in both demand and supply. b) A decrease in both demand and supply. c) An increase in demand combined with a decrease in supply. d) A decrease in demand combined with an increase in supply. 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 a) substitutes. b)
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This note was uploaded on 04/19/2008 for the course ECON 200 taught by Professor Newton during the Winter '08 term at Ohio State.

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

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