MidtermOne2007QA - Econ 1, Lect. B, Midterm 1 Thursday,...

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Econ 1, Lect. B, Midterm 1 LAST NAME: ____________________________ Thursday, October 18, 2007 FIRST NAME: ____________________________ STUDENT ID: ____________________________ SIGNATURE: ____________________________ DO NOT OPEN YOUR EXAM UNTIL INSTRUCTED TO DO SO!!! INSTRUCTIONS 1. Make sure you have all pages (30 multiple choice, 2 short answer). 2. Answer all multiple choice questions in the space provided below. 3. For the short answer, show all work. We reserve the right to deduct points from answers that are hard to read. 4. You may NOT use a calculator. 5. There are a total of 100 points. MULTIPLE CHOICE ANSWERS (2 points each) 1. ______ 2. ______ 3. ______ 4. ______ 5. ______ 6. ______ 7. ______ 8. ______ 9. ______ 10. ______ 11. ______ 12. ______ 13. ______ 14. ______ 15. ______ 16. ______ 17. ______ 18. ______ 19. ______ 20. ______ 21. ______ 22. ______ 23. ______ 24. ______ 25. ______ 26. ______ 27. ______ 28. ______ 29. ______ 30. ______
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Let Q d stand for the quantity demanded, Q s stand for the quantity supplied, and P stand for price. If Q d = 20 - 2 P and Q s = 5 + 3 P , then the equilibrium price is A) $2. B) $3. C) $4. D) $1. 2) Technological progress makes the production possibilities frontier A) shift outward from the origin. B) become more linear and less bowed. C) become less linear and more bowed. D) shift inward toward the origin. 3) Production efficiency is achieved A) when the ability is gained to produce goods and services that are desired beyond the PPF boundary B) when it producing one more unit of one good cannot occur without producing less of some other good. C) when producing inside the production possibilities frontier D) when all goods and services desired by consumers can be produced in the economy 4) Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A A) increases the supply of good B. B) increases the demand for good B. C) decreases the demand for good B. D) decreases the supply of good B. 5) Which of the following makes demand less elastic? A) Spending a large proportion of income on the good. B) A short time elapsing since the product ʹ s price changed. C) The existence of many close substitutes for the good. D) All of the above answers are correct. 6) Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that A) the supply curve of snowboards shifted rightward. B) some firms entered into the snowboard industry. C) the supply of snowboards is price elastic.
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This note was uploaded on 07/30/2008 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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MidtermOne2007QA - Econ 1, Lect. B, Midterm 1 Thursday,...

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