Exam#1 Sample1

Exam#1 Sample1 - Sample Microeconomic Questions (Exams 1-2)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Sample Microeconomic Questions (Exams 1-2) Answers in the End 1. To say that people make decisions at the margin suggests that: a) they usually wait until the last minute before making a decision to buy a good. b) they compare the change in cost and the change in benefit of various activities and then engage in the activity with the largest net benefit. c) most people just barely get by on the incomes they earn and live from day-to-day on the very edge of subsistence. d) given a choice, most people would prefer to make their own decisions concerning the things that affect their lives. 2. Which of the following events would cause a rightward shift in the market-supply curve for large automobiles? a) A technological improvement which reduces the cost of production. b) An increase in the wages of auto workers. c) An excise tax on automobiles. d) A decrease in the number of sellers. 3. In a speech before the American Society of Newspaper Editors (April 16, 1953), President Eisenhower stated: "Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. ..This is not a way of life at all in any true sense. Under the cloud of threatening war, it is humanity hanging from a cross of iron." Along such a production-possibilities curve, President Eisenhower implicitly recommended in the quotation that there be: a) A shift of the production-possibilities curve closer to the origin. b) A shift of the curve to a combination with more scarce resource inputs. c) A movement along the curve to production of more military goods. d) A movement along the curve to production of more consumer goods. 4. The concept of scarcity as used by economists refers to: a) shortages. b) a situation in which the available resources are not enough to satisfy the wants of the people. c) a situation in which an item is available only in very small quantities. d) a situation in which an item is very expensive. e) a situation in which a resource is nonrenewable. 5. Capital as a factor of production: a) refers to products such as machinery and equipment that are used in the production process. b) always refers to the financial condition of a privately held corporation. c) is determined by a company's stock price on the New York Stock Exchange. d) describes a company's headquarters.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/25/2008 for the course ECON 1 taught by Professor Carter during the Fall '06 term at El Camino.

Page1 / 5

Exam#1 Sample1 - Sample Microeconomic Questions (Exams 1-2)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online