Exam 1 Jan 2008 Answers

Exam 1 Jan 2008 Answers - MIME 2600 Engineering Economics...

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MIME 2600 – Engineering Economics Name: ______________________________ Midterm Exam 1 (100 Points) January 30, 2007 Select the best answer from choices A through D for each question. (2.5 points each) 1. The creation of a price floor for a product above the equilibrium price will generally cause a(n) (a) Market Shortage. (c) Market Failure. (b) Market Surplus. (d) Scarcity. 2. The “invisible hand” that conveys the desired outputs to suppliers based on market prices and sales is referred to as the ________. (a) Mixed Economy. (c) Market Mechanism . (b) Supply Curve. (d) Demand Curve. 3. The assumption that allows for the analysis of individual market variables while assuming nothing else changes is ________. (a) Laissez Faire. (c) Law of Diminishing Marginal Utility. (b) Say’s Law . (d) Ceteris Paribus. 4. The policy of non-intervention by the government known as ________ is the preferred role of government by classical economics. (a) Laissez Faire . (c) Law of Diminishing Marginal Utility. (b) Say’s Law . (d) Ceteris Paribus. 5. The theory that supply creates its own demand is _________. (a) the Law of Supply. (c) the Law of Demand. (b) Say’s Law. (d) the Law of diminishing marginal utility. 6. The term ________ represents the fact that the wants of an economy exceeds the ability of the economy to satisfy these wants due to limited resources. (a) Scarcity. (c) Market Failure. (b) Market Surplus. (d) Market Shortage. 7. The ________ represents the total output of a country by adjusting the GDP for inflation. (a) GDP per capita. (c) GDP. (b) Real GDP. (d) Productivity. 8. The practice of governments deregulating businesses to stimulate the economy represents an example of ________. (a) Keynesian policy. (c) the Law of Demand. (b) Supply-Side policy. (d) Monetary policy. 9. The forgoing of watching a movie in order to study for this test is an example of a(n) ________. (a) Production Cost. (c) discount price. (b) Opportunity Cost.
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This note was uploaded on 05/04/2008 for the course MIME 2600 taught by Professor Lewandowski during the Spring '08 term at Toledo.

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Exam 1 Jan 2008 Answers - MIME 2600 Engineering Economics...

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