midterm 1 - ECON 2005 Midterm #1 Name_ Spring 2008 MULTIPLE...

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ECON 2005 Midterm #1 Name___________________________________ Spring 2008 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A student observes that every time he eats an apple before taking an exam he gets an F. He, therefore, concludes that to pass an exam, he only needs to avoid eating an apple before he takes the exam. He has committed the fallacy of A) composition. B) division. C) inductive reasoning. D) post hoc, ergo propter hoc. 2) The ________ is NOT an opportunity cost of attending college. A) cost of the food that you consume while you are attending college B) income you could have earned if you didn t attend college C) alternative uses of the time you spend studying D) tuition you pay Refer to the information provided in Scenario 1 below to answer the questions that follow. SCENARIO 1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. 3) Refer to Scenario 1. The statement that a 1% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of ________ economics. A) policy B) positive C) non - empirical D) normative 4) Refer to Scenario 1. The statement, the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers, is most likely an example of ________ economics. A) normative B) positive C) microeconomic D) descriptive 5) As an economy produces more of a good, the opportunity costs of producing it increases. This most likely occurs because A) as more of a good is produced the quality of that good declines and therefore the costs of production increase. B) as more of a good is produced the inputs used to produce that good will increase in price. C) resources are not equally well suited to producing all goods and as more of a good is produced it is necessary to use resources less well suited to the production of that good. D) consumers would be willing to pay higher prices for the good as more of the good is produced. 6) Economists use the phrase ceteris paribus to express the assumption, A) scarcity is a fact of life. B) there is no such thing as a free lunch. C) everything affects everything else. D) all else equal. A - 1
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Refer to the information provided in Table 2.1 below to answer the following questions.
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This note was uploaded on 05/05/2008 for the course ECON 2005 taught by Professor Zirkle during the Spring '07 term at Virginia Tech.

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midterm 1 - ECON 2005 Midterm #1 Name_ Spring 2008 MULTIPLE...

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