Midterm_BA_315_Fall__04

Midterm_BA_315_Fall__04 - Midterm Exam, Fall 2004 BA 315:...

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1 Midterm Exam, Fall 2004 Student Name:___________ BA 315: Economy, Industry, and Competitive Analysis HW Team#:____________ Department of Finance CRN: 10726, 10727 Charles H. Lundquist College of Business University of Oregon Ali Emami Answering the following questions please use words, or graphs, or math or any combinations to support your answers. Correct answers without explanations (intuitive, graphical, or mathematical) will not receive any credit. Please limit your answers to the space provided and be very brief in your explanations. Part A: General Questions (3 points each) Use the following to answer question 1: Table 1.1 - Production possibilities for missiles and houses Table 1.1 shows the tradeoff between different combinations of missile production and home construction, ceteris paribus. Complete the table by calculating the required opportunity costs for both missiles and houses. Then answer the indicated question(s). Opportunity cost Opportunity cost Number of of Houses in Number of of Missiles in Combination Houses terms of Missiles Missiles terms of Houses S 100 0 T 95 _____ 20 _____ U 85 _____ 35 _____ V 65 _____ 45 _____ 1. In Table 1.1, the opportunity cost of increasing the production of missiles from 20 to 35 in terms of houses is: A) One house. B) 10 houses. C) 85 houses. D) 95 houses. Use the following to answer questions 2-3: Figure 1.1 - Production-possibilities curve A B C D O F I C E B U L D N G S HOUSING 2. Society is experiencing the employment of some but not all available resources. Select the appropriate point. (See Figure 1.1.) A) A . B) B. C) C. D) D.
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2 3. Society might be able to produce this combination if technology improved but cannot produce it with current technology. Select the appropriate point. (See Figure 1.1.) A) A. B) B. C) C. D) D. 4. Opportunity cost may be defined as the: A) Most desired goods or services that are forgone in order to obtain a particular good. B) Dollar price paid for a final good or service. C) Dollar cost of producing a particular product. D) Dollar cost of the next best alternative resources for producing a good. Use the following to answer question 5: Figure 3.1 - Shifts of supply and demand Answer the indicated question(s) by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market, ceteris paribus .
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This test prep was uploaded on 04/22/2008 for the course ECON 315 taught by Professor Aliemami during the Spring '08 term at University of Oregon.

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Midterm_BA_315_Fall__04 - Midterm Exam, Fall 2004 BA 315:...

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