Exam1-version 1 Key

Exam1-version 1 Key - Econ 211 Version A Exam #1 Kerry...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 211 Exam #1 Version A Kerry Waller Print and encode your name and student number. If you fail to do these actions correctly, you will be penalized five points. On the answer sheet, mark the letter corresponding to the correct answer, using a pencil. If you (i) fail to answer a question, (ii) select the incorrect answer, or (iii) select more than one answer, you will receive zero credit for that question. There are 30 questions. You have plenty of time; read the questions carefully and be sure to engage brain before putting pencil in gear. Go Tigers . 1. Which version of the exam do you have? (Look in the upper right hand corner) a. Version A b. Version B 2. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. e. money. 3. When we say that the grade of “A” in this class is scarce, we mean that a. Everyone will spend all of their time studying only Economics 211 this semester b. Something must be sacrificed to get an “A” c. There are only a fixed number of “A’s” to go around d. Everybody wants an “A”, regardless of the cost e. All of the above, except (d) 4. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies, wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. e. Both (b) and (d) 5. The term ceteris paribus means a. there is no free lunch b. our boss is the customer c. other things equal d. all goods are scarce e. both (a) and (d) are correct 6. The opportunity cost of going to college is a. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses. b. the value of the best opportunity a student gives up to attend college. c. zero for students who are fortunate enough to have all of their college expenses paid by someone else. d. zero, since a college education will allow a student to earn a larger income after graduation. e. Both (a) and (b) 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Econ 211 Exam #1 Version A Kerry Waller Questions 7-10 are based on the following information: Suppose you know that for Peggy Sue, the marginal benefits of studying decline with the amount of time spent studying each week, while the marginal costs of studying rise with the amount of time spent studying each week. You also know that Peggy Sue allocates her time each week to equate the marginal benefits of the last hour spent studying to the marginal costs of that last hour. ( NOTE: These four questions are very difficult to answer without drawing diagrams) 7. Suppose you know that in week 1 Peggy Sue spent 22 hours studying, and her marginal benefit (measured in dollars) from the last hour spent studying was $10. From this you can conclude that a. Her marginal cost of the last hour spent studying was also $10 b. Her marginal cost of the last hour spent studying was less than $10, or else Peggy Sue would have gotten no benefit from studying all of that time
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/06/2008 for the course ECON 211 taught by Professor Johnson during the Fall '07 term at Clemson.

Page1 / 6

Exam1-version 1 Key - Econ 211 Version A Exam #1 Kerry...

This preview shows document pages 1 - 3. Sign up to view the full document.

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