mymidterm1 - Principles of Microeconomics Midterm I Summer...

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Principles of Microeconomics Midterm I Summer 2008 There are 60 multiple choice questions. 1 point each. 60 points total. You may take the exam anytime between June 14 th and June 18 th 2008. This is an open book, open notes exam. If you have any questions feel free to email me at [email protected] I am assuming that you will uphold the honor code while taking this exam. That includes NOT discussing the exam, even in passing, with anyone else. I strongly believe in Karma as well. It will come and bite you if you are not honor-bound. 1. According to economists, economic self-interest: a) is a reality that underlies economic behavior. b) has the same meaning as selfishness. c) is more characteristic of men than of women. d) is usually self-defeating. 2. When entering a building, Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of: a) irrational behavior. b) a lazy person. c) marginal benefit-marginal cost analysis. d) programmed learning. 3. The economic perspective refers to: a) macroeconomic phenomena, but not microeconomic phenomena. b) microeconomic phenomena, but not macroeconomic phenomena. c) the making of purposeful decisions in a context of marginal costs and marginal benefits. d) unlimited resources in a context of limited economic wants. 4. Purposeful behavior means that: a) people are selfish in their decision-making. b) people weigh costs and benefits to make decisions. c) people are immune from emotions affecting their decisions. d) decision-makers do not make mistakes when weighing costs and benefits.
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5. The scientific method is: a) not applicable to economics, because economics deals with human beings. b) also known as the economic perspective. c) analysis that moves from broad generalizations called laws to theories and then to hypotheses. d) used by economists and other social scientists, as well as by physical scientists and life scientists. 6. Economic models: a) are of limited use because they cannot be tested empirically. b) are limited to variables that are directly related to one another. c) emphasize basic economic relationships by purposefully simplifying the complexities of the real world. d) are unrealistic and therefore of no practical consequence. 7. Ben says that "An increase in the tax on beer will raise its price." Holly argues that "Taxes should be increased on beer because college students drink too much." We can conclude that: a) Ben's statement is normative, but Holly's is positive. b) Holly's statement is normative, but Ben's is positive. c) Both statements are normative. d) Both statements are positive. 8. A production possibilities curve illustrates:
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mymidterm1 - Principles of Microeconomics Midterm I Summer...

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