Exam_1_F04_Exam

Exam_1_F04_Exam - DARTMOUTH COLLEGE ECONOMICS 1 PRICE...

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D ARTMOUTH C OLLEGE P ROFESSOR J ESSE G IUMMO E CONOMICS 1: P RICE S YSTEM M IDTERM E XAM #1 F ALL 2004: 100 POINTS Name__________________ Instructions : You will have 65 minutes to complete this exam. This exam is worth 100 points. There are 10 multiple-choice questions worth a total of 20 points, and 3 essay questions worth a total of 80 points. P ART I: 10 M ULTIPLE -C HOICE Q UESTIONS (20 POINTS ) 1) Economists use the ceteris paribus assumption to express the assumption, A) “All else equal” B) “Everything effects everything else” C) “Scarcity is a fact of life” D) “There is no such thing a free lunch” 2) You own the Wizard of Oz on DVD. The opportunity cost of watching the Wizard of Oz for the second time is A) Is zero B) Is one-half the cost of the DVD, as this is the second time you have watched it. C) Is the value of the alternative use of the time you spend watching the DVD. D) Can not be calculated. 3) Periods of less than full employment correspond to A) Points outside the PPF B) Points inside the PPF C) Points on the PPF D) Either points inside or outside the PPF 4) For an economy to produce beyond its current PPF, the economy would need to A) Waste less B) Reduce Inputs C) Be more efficient D) Increase the quality or quantity of its resource 5) According to the law of demand, as price rises, ceteris paribus, A) Demand increases. B) Demand decreases C) Quantity demanded decreases D) Quantity demanded increases

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D ARTMOUTH C OLLEGE P ROFESSOR J ESSE G IUMMO E CONOMICS 1: P RICE S YSTEM 6) Suppose the demand for newspapers goes up when the price of coffee goes down. We can say the two goods are A) Complements B) Substitutes C) Unrelated goods D) Perfect substitutes 7) If the price of pizza sauce increases, there will be _______ of pizza.
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Exam_1_F04_Exam - DARTMOUTH COLLEGE ECONOMICS 1 PRICE...

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