Micro Test

Micro Test - Econ 2304-04752 Final exam Fall 2006 Part 1...

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Econ 2304-04752 Name_______________________________ Final exam Fall 2006 Part 1: multiple-choice questions Choose the one alternative that best completes the statement or answers the question. 1. The fundamental concept of economics is A) unemployment. B) scarcity. C) inflation. D) government intervention. E) taxes. 2. Opportunity cost is A) the budget available to spend on an item. B) not related to scarcity. C) how much money is paid for something. D) the highest-valued alternative that is forgone in making a choice. E) any chance to earn money. 3. Microeconomics studies all of the following except A) how firms use resources such as labor or capital. B) how individual workers decide how much of their time to spend on labor. C) how consumers decide which products to buy. D) how firms make choices to maximize their profits. E) how inflation and unemployment are related. 4. The production possibilities frontier model primarily studies A) tradeoffs. B) market prices. C) firm production costs. D) consumers’ incomes. E) exchange between individual people or countries. 5. Along a production-possibilities frontier the opportunity cost is A) the sacrifice of one good required to produce one more unit of another good. B) how much money it costs to produce one more of each good. C) zero. D) the total dollar amount of each good produced. E) the total quantity (in units) of each good produced. 6. Economists make simplifying assumptions in their models because A) they don’t care about the real world. B) simple models are easier to analyze, and useful for drawing conclusions about the real world. C) without making simplifying assumptions, they would get the wrong answers. D) this is the way economics has always traditionally been done. E) the simplifying assumptions are actually true in most economies. 7. The term "ceteris paribus" is a synonym for A) small changes. B) equilibrium. C) perfect competition. D) other things equal. E) comparative advantage.
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Use the table below to answer Questions 8-11. Combination A B C D E F Aircraft carriers 0 1 2 3 4 5 Vaccine doses (thousand) 400 340 270 190 100 0 8. According to the table, the combination of 3 aircraft carriers and 125,000 vaccine doses is A) unattainable. B) efficient. C) attainable but inefficient. D) None of these. 9. According to the table, the opportunity cost of increasing aircraft carrier production from 2 to 3 is A) 1 aircraft carrier. B) 2 aircraft carriers. C) 80 thousand vaccine doses. D) 190 thousand vaccine doses. E) 270 thousand vaccine doses. 10. According to the table, as the number of vaccine doses increases along the production-possibilities frontier, the opportunity cost of vaccine doses A) increases. B) decreases.
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Micro Test - Econ 2304-04752 Final exam Fall 2006 Part 1...

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