pes16samplefinal2 - W1105.002 Principles of Economics...

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W1105.002 Principles of Economics Sample Final – Practice Material 2 Principles of Economics – Fall 2012 – Final Practice Material 1 Section 1 - Multiple Choice (1 point for each correct answer) Identify the letter of the choice that best completes the statement or answers the question and record it in the table in Booklet 2. 1. Lucinda buys a new GPS system for $250. She receives consumer surplus of $75 from the purchase. How much does Lucinda value her GPS system? a. $75 b. $175 c. $250 d. $325 2. To stimulate the economy and ease credit, a central bank could 3. The purchase by an individual or firm of bonds issued in another country is part of 4. Other things equal, when the price level falls, the interest rate ________ and consumption expenditures ___________. Table 1 Serena Haley Bracelets 8 9 Necklaces 16 12 Table 1 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces. 5. Refer to Table 1 . What is Serena's opportunity cost of making a necklace? a. 1/2 of a necklace b. 1/2 of a bracelet c. 2 necklaces d. 3/4 of a bracelet 6. Refer to Table 1 . Which of the following statements is true? 7. Which of the following is NOT an automatic stabilizer? 8. The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the
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Principles of Economics – Sample Final – Practice Material 2 2 Table 2 The Balance Sheet of First Bank Assets Liabilities and Stockholders’ Equity Reserves $20 billion Deposits $200 billion Loans $190 billion Net Worth $10 billion
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