Exam 1 Form A - ECON 2005 Fall 2007 Name ID First Exam KEY A Instructions Since a wrong answer has the same impact on your score as no answer you

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E C O N 2 0 0 5 N a m e : Fall 2007 ID # : First Exam: KEY A Instructions: Since a wrong answer has the same impact on your score as no answer, you should answer every question. The total time is 50 minutes. The total score is 99 points. GOOD LUCK! 1. Which of the following is NOT illustrated by the PPF? a. Efficiency b. Opportunity cost c. Equity d. Tradeoffs 2. Ceteris paribus means a. other things held constant or equal. b. knowledge gained before the study of evidence is made. c. variables that influence other variables within a theory but that themselves are determined by the factors outside the theory. d. in a historical context 3. Supply does NOT depend on the a. the level of technology. b. number of suppliers in the industry. c. price of the product. d. prices of factors of production. e. motivation of consumers. 4. Taxes on cigarettes and government warnings about the harmful effects of smoking are two different means of reducing cigarette consumption. How do these two approaches differ? a. Only government warnings will decrease quantity demanded. b. Only taxes will decrease quantity demanded. c. Both will decrease quantity demanded, but only taxes will increase the price of cigarettes. d. Both will decrease quantity demanded, but only government warnings will increase the price of cigarettes.
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5. Which kind of economics describes analyzes situations and which one prescribes courses of action a. descriptive; positive b. positive; normative c. normative; positive d. normative; descriptive 6. Consider the following two statements. (1) An increase in the price of eggs will cause a decrease in the demand of eggs. (2) An increase in the price of eggs will cause a decrease in the demand for bacon. In which of these two statements is the term “demand” used correctly? a. neither statement b. the first statement c. the second statement d. both statements 7. People scalping tickets for the Super Bowl will be successful in selling tickets a. any time the Super Bowl is popular. b. when prices are too high. c. when the price set by the National Football League is less than the market equilibrium price. d. only when there is excess supply. 8. Supply is inelastic if a. Elasticity is equal to 0. b. Elasticity is equal to 1. c. Elasticity is less than 1. d. Elasticity is greater than 1.
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This note was uploaded on 04/01/2008 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.

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Exam 1 Form A - ECON 2005 Fall 2007 Name ID First Exam KEY A Instructions Since a wrong answer has the same impact on your score as no answer you

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