sample%20final%20Wi08

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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 15

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online