Fin_a_201_W02

Fin_a_201_W02 - Cal Poly Pomona, Econ 201 Final Exam,...

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Cal Poly Pomona, Econ 201 NAME____________________________________ Final Exam, Winter 2002 - This exam consists of 50 multiple choice questions, all of equal weight. - Clearly print your name on this exam and on your ordinary scantron form #882. - You may use an ordinary language dictionary (not electronic or economics dictionary). - A calculator may be used but may not be shared by students. You may leave when finished. - Hand in both this exam and your scantron form. You may leave when you are finished. Use the above diagram for the following five questions: 1. The above PPF shows this economy can: a. produce both 40 guns and 20 butter in the same period. b. produce either 40 guns or 20 butter, but not 40 guns and 20 butter in the same period of time. c. produce 50 guns and 100 butter in the same period, if resources are used efficiently d. none of the above 2. What is the opportunity cost of an additional unit of butter on segment AB? a. 20 guns b. 10 guns c. 2 guns d. 1/2 or .5 of a gun 3. What is the opportunity cost of an additional gun on segment AB? a. 20 butter b. 10 butter c. 2 butter d. 1/2 or .5 of a butter 4. Which of the following is a normative economic statement? a. An increase in the legal minimum wage would cause employment to increase. b. An increase in the legal minimum wage would cause employment to decrease. c. An increase in the legal minimum wage would lead to greater inequality in the distribution of income. d. The minimum wage should be increased so the poor can be made better off. 5. Which of the following is a stock variable? a. income b. wealth c. (federal government) budget deficit d. investment Butter Guns 20 100 50 40 A B C
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6. Price of a plane ticket from New York to L.A. is $500 and the flight takes 5 hours. A bus ticket between the same two cities costs $100 and the ride takes 105 hours. Assuming non-monetary considerations are equal for the two alternatives, the opportunity cost of flying will exactly equal that of taking the bus if the individual’s time is worth. a) $ 20 per hour b) $ 4 per hour c) $ 3 per hour d) $ 1 per hour The production possibilities frontier (PPF) below depicts an economy with two types of resources: sandy-soil which can produce either two (2) wheat or one (1) corn; and clay-soil which can produce either one (1) wheat or two (2) corn, per period. Use it to answer the following three questions. 7. Along the segment GH, the opportunity cost of one corn is: a) .25 = (1/4) wheat b) .5 = (1/2) wheat c) one (1) wheat d) 2 wheat e) 4 wheat 8. Along the segment HI, the opportunity cost of one corn is: a) .25 = (1/4) wheat b) .5 = (1/2) wheat c) one (1) wheat d) 2 wheat e) 4 wheat 9. An economy which moves from point H to point I is moving: a) corn into wheat production. b) wheat into corn production.
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Fin_a_201_W02 - Cal Poly Pomona, Econ 201 Final Exam,...

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