sample%20exam%201

sample%20exam%201 - Professor Mumy Economics 200 Sample...

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Professor Mumy Economics 200 Sample Exam 1 Reflects the style of questions, but not necessarily the exact coverage of Exam 1 25 Multiple choice questions. ANSWERS ARE AT THE END. 1) All economic questions arise from the fact that A) inflation is inevitable. B) both wants and resources are unlimited. C) unemployment is inevitable. D) resources are scarce. 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) "resource" 3) When resources are assigned to inappropriate tasks, the result will be producing at a point A) where the slope of the PPF is positive. B) where the slope of the PPF is zero. C) inside the PPF. D) outside the PPF. 4) As we increase the production of good a, we find that we must give up larger and larger amounts of good b per unit of a. A) This situation illustrates increasing marginal opportunity cost. B) As a result, we should specialize in the production of b. C) The production possibility frontier for goods a and b is a straight line. D) Good b will be more highly regarded by consumers than good a. 5) If marginal benefit exceeds marginal cost A) we've achieved efficient resource use. B) we should produce more. C) we should produce less. D) we cannot tell if more or less should be produced.
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6) In Figure 3.1, moving from point d to point a requires A) technological change. B) a decrease in unemployment. C) reducing the output of consumption goods in order to boost the output of capital goods. D) both capital accumulation and a decrease in unemployment. Table 3.1 ----------------------------------------- Point Production of X Production of Y ----------------------------------------- a 0 40 b 4 36 c 8 28 d 12 16 e 16 0 ----------------------------------------- 7) Refer to Table 3.1. We can infer that A) the economy illustrated has a comparative advantage in Y. B) the economy illustrated has a comparative advantage in X.
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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%20exam%201 - Professor Mumy Economics 200 Sample...

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