SampleMidterm1_S08

SampleMidterm1_S08 - Sample for Midterm 1 - EC102 [Updated...

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[Updated on Feb 18 – The answer for Q1 is E!] 1. Jen spends her afternoon at the beach, paying $1 to rent a beach umbrella and $11 for food and drinks rather than going to see a movie on which she would be willing to spend an equal amount of money. The marginal cost of going to the beach is: A. zero, because the money she spent was for food, drinks and an umbrella rather than to enter the beach. B. the $12 she spent on the umbrella, food and drinks. C. only $2 because she would have spent the money on food and drinks whether or not she went to the beach. D. the maximum price she would have paid for the movie she missed seeing. E. the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks. 2. “Increasing the earnings of unskilled employees is desirable , and raising the minimum wage is the best way to accomplish this” is a: A. macroeconomic normative statement B. macroeconomic positive statement C. microeconomic normative statement D. microeconomic positive statement E. statement that is neither positive nor normative 3. Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck, but she purchases one for $12,000. Her __________ is __________. A. benefit; $12,000 B. cost; $15,000 C. economic surplus; $3,000 D. economic surplus; $12,000 E. economic surplus; -$3,000 4. Positive economic statements are those that A. are always correct. B. help people have a more optimistic outlook. C. can be influenced by political ideology D. predict how people should behave. E. predict how people do behave. 5. Amy is thinking about going to the movies tonight. A ticket costs $7 and she will have to cancel her dog-sitting job that pays $30. The cost of seeing the movie is A. $7. B. $30.
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This note was uploaded on 05/06/2008 for the course ECON 102 taught by Professor Soffriti during the Summer '08 term at BU.

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SampleMidterm1_S08 - Sample for Midterm 1 - EC102 [Updated...

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