Exam_1.Economics_102_Rawlins - Economics 102 Rawlins Spring...

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Economics 102 Rawlins Spring 2008 First Mid-term Examination January 31, 2008 All questions are multiple choice. Select the ONE answer that you think is best possible choice. There are sixty questions on the exam, making each question worth 1 and 2/3 of a point, for a total of 100 pts possible. If you do not know the answer, guess. You will have some probability of getting it right. If you skip it you will get a zero for that question. 1. Economics is called a social science because: a. It has social effects b. It is not supported by theory c. It is based on controlled experiments d. It is a study of the causes and consequences of human behavior e. All of the above 2. Which of the following is not included in the assumption that people are rational in their economic decisions? a. They prefer more to less. b. They avoid risk. c. They can order their preferences. d. Their choice patterns are consistent or transitive. 3. Economists work from the assumption that scarcity requires everyone to: a. Make choices. b. Satisfy all their wants. c. Take as much as they can get from everyone else. d. Develop unlimited resources. 4. Which of the following is not a factor of production? a. A forest. b. Dollars. c. A computer program. d. An economics professor. e. A tractor. 5. Which of the following is not an example of capital? a. A production robot in the auto industry. b. A computer. c. A diamond you find on the street. d. The empire state building.
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6. Labor as a factor of production: a. Includes only skilled or trained labor. b. Does not include service and professional work. c. Includes physical but not mental labor. d. Includes both physical and mental labor. 7. The key factor in determining whether an economic model is a good model is: a. Whether it includes all the relevant variables. b. Whether it can correctly predict economic outcomes. c. Whether it is simple enough to be understood by the public. d. Whether politicians can use it in designing policy. 8. The Post Hoc, Ergo Propter Hoc fallacy refers to faulty reasoning based on: a. Inaccurate assumptions about behavior. b. Assuming that what happened after the fact happened because of the fact. c. Assuming that people will be generous and forgiving. d. Assuming that there is no scarcity. 9. A direct relationship between two variables means that: a. The two are unrelated. b. When one increases the other decreases. c. When one increases the other increases. d. The relationship varies over time. 10. Assume a demand schedule where at price 10 the quantity demanded is 5 and at price 8 the quantity demanded is 12. If you show this on a demand curve, what is the slope of the curve between the prices 8 and 10? a. 2/7 b. 3.5 c. -2/7 d. -3.5 11. Which of the following is not a question for macroeconomics? a.
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Exam_1.Economics_102_Rawlins - Economics 102 Rawlins Spring...

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