econ - practice prelim_Exam - Professor Richard V....

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Professor Richard V. Burkhauser Name:__________________________________ ECON 101 Fall 2004 Section Number:__________ EXAM 1-A This exam is in two parts. For the first part, pencils only may be used. Turn the bubble sheet so that the space for your name appears in the upper left corner. Enter your name in the space provided, one letter to a box. Enter last name first, then your first initial. If your name is longer than the space provided, enter only that portion of your name that will fit. Under each letter of your name blacken the box corresponding to the letter. For each digit, blacken the numbered box below it which corresponds to the digit entered. Then in the same manner, fill in your 6 digit student identification number. Also, write either Exam 1-A or Exam 2-A (depending on the version you are taking) above your name on your bubble sheet. Read each question carefully and select the best answer. Mark the corresponding box on the answer sheet by neatly filling in the entire box. If you decide to change an answer, erase completely your previous answer. Do not make any other marks on this answer sheet. If you don't know the answer, guess. There is no additional penalty for doing so. Each Multiple-Choice Question is worth 3 points (Total 75 points). 1. All else equal, a decrease in the price of microchips used to make computers, which would shift the supply curve of computers to the right, would decrease the equilibrium price of computers to a lesser degree: a. the closer the elasticity of demand is to unity. b. the closer the elasticity of demand is to the elasticity of supply. c. the more inelastic is the demand curve. d. the more elastic is the demand curve. 2. One would expect that if the price of staples doubled: a. the price of staplers would fall. b. the demand for staplers would increase. c. the quantity of staplers produced would increase. d. there would be no change in the market for staplers. 3. The table below gives units of rice and televisions that can be produced in the USA and Mexico if both countries use the same amount of all relevant resources. Rice Televisions USA 10 20 Mexico 4 5 Based upon the theory of comparative advantage the USA should: a. import rice and export televisions. b. import televisions and export rice. c. import nothing, because it has a comparative advantage in both. d. export both goods because it has an absolute advantage in both.
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4. The table below gives the production possibilities for a country that can produce either avocadoes or oranges. Avocadoes Oranges 0 13 1 8 2 4 3 1 4 0 The opportunity cost of producing the second avocado in terms of oranges is: a. 0 b. 1 c. 4 d. 6 e. 8 The diagram below concerns the supply for red apples. Use this diagram to answer the following two questions. 5.
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This test prep was uploaded on 02/20/2009 for the course ECON 101 taught by Professor Burkhauser during the Fall '08 term at Cornell University (Engineering School).

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econ - practice prelim_Exam - Professor Richard V....

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