ECON 2101 - fall 08 test 1b key

ECON 2101 - fall 08 test 1b key - ECON 2101 - Principles of...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 2101 - Principles of Macroeconomics, Fall 2008 - Test 1 VERSION B Multiple Choice (2.5 points each) Choose the response that best answers the question or completes the statement. Make sure you put all of your responses on the opscan form. 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
1. One reason that the quantity demanded of a good increases when its price falls is that the: A. low er pric e shift s the dem and curv e to the right . B. low er pric e shift s the dem and curv e to the left. C. pric e decl ine shift s the sup ply curv e to the left. D. low er pric e incr eas es the real inc om es, and pur cha sin g po wer , of 2
Background image of page 2
3
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 2. The law of increasing opportunity costs states that: A. the sum of the cost s of pro duci ng a parti cula r goo d can not rise abo ve the curr ent mar ket pric e of that goo d. B. if the sum of the cost s of pro duci ng a parti cula r goo d rise s by a spe cifie d perc ent, the pric e of that goo d mus t rise by a gre ater relat ive amo unt. C. if
Background image of page 4
3. In economics, consumers only receive utility if the consumption of a good makes them happier. A. Tru e B. Fal se 5 4. Well-defined property rights: A. enc our age ow ner s to mai ntai n or imp rov e thei r pro pert y. B. disc our age har d wor k. C. disc our age inve stm ent and gro wth. D. imp ede exc han ge.
Background image of page 5

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

View Full DocumentRight Arrow Icon
5. Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates: A. incr easi ng opp ortu nity cost s. B. pro duct ive effic ienc y. C. dist orte d prio ritie s. D. opp ortu nity cos ts. 6
Background image of page 6
6. The term laissez faire suggests that: A. land and othe r natu ral reso urce s sho uld be publ icly own ed, but capi tal equi pme nt sho uld be priv atel y own ed. B. land and othe r natu ral reso urce s sho uld be priv atel y own ed, but capi tal sho uld be publ icly own ed. C. gov ern me nt sho 7
Background image of page 7

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

View Full DocumentRight Arrow Icon
8
Background image of page 8
9 7. The competitive market system, unlike command systems: A. dis cour age s inno vati on bec aus e it is diffi cult to acq uire addi tion al capi tal in the for m of new mac hine ry and equi pme nt. B. dis cour age s inno vati on bec aus e firm s wan t to get all the profi ts pos sibl e fro m exis ting mac hine ry and equi pme nt. C. enc our age
Background image of page 9

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

View Full DocumentRight Arrow Icon
At the equilibrium price: A. ther e are forc es that cau se pric e to rise. B. ther e are no pre ssu res on pric e to eith er rise or fall. C.
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 39

ECON 2101 - fall 08 test 1b key - ECON 2101 - Principles of...

This preview shows document pages 1 - 11. Sign up to view the full document.

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