midterm1 version1 s07

Principles of Macroeconomics

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Econ 101 – Principles of Microeconomics Student Name: Korinna K. Hansen Section #: TA Name: First Midterm Examination – Spring 2007 Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You have 50 minutes to complete this exam. This exam consists of 30 multiple-choice questions. The first 10 (problems 1 through 10) are worth 2 points each. The next 20 (problems 11 through 30) are worth 4 points each. Please answer all questions on the scantron sheet you are given using a #2 pencil . If there is an error on the exam or you do not understand something, make a note on your exam booklet and we will address this issue after this examination is complete. You cannot ask any questions about the exam while the exam is administered. When you are finished, please bring both the scantron sheet and this exam booklet to the place indicated by the instructors. NO CELLPHONES, CALCULATORS, FORMULA SHEETS ARE ALLOWED. CHOOSE THE BEST ANSWER FOR EACH QUESTION. GOOD LUCK! How to fill out the scantron sheet: 1. Print your last name , first name , and middle initial in the spaces marked “Last Name”, “First Name”, and “MI”. Fill in the corresponding bubbles below. 2. Print your student ID number in the space marked “Identification Number”. Fill in the bubbles. 3. Write the number of the discussion section you are registered for under “Special Codes” spaces ABC, and fill in the bubbles. For Discussion sections see the last page. 4. Write the version number of your exam booklet under “Special Codes” space D, and fill in the bubble. The version number is on the top of this page.
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a) the opportunity cost of producing the goods under consideration is increasing. b) the opportunity cost of producing the goods under consideration is decreasing. 2) Suppose two economies A and B are engaged in producing apples and cherries. Suppose that both economies have linear PPFs and that the two PPFs have different slopes. Which of the following statements is IMPOSSIBLE? a) Economy A can have an absolute advantage in producing both apples and cherries. b) Economy B can have a comparative advantage in producing both apples and cherries. 3) A news report was just released today with the finding that drinking herbal tea daily can reduce an individual’s risk of a heart attack. In response to this report, there will most likely be an a) increase in the demand of herbal tea. b) increase in the supply of herbal tea. 4) Suppose that the absolute value of the price elasticity of demand for haircuts is 3 when there is a 30 percent increase in quantity demanded. The percentage decrease in price necessary to increase the quantity demanded by 30 percent is: a) 10 percent b) 1 percent 5) A 10 percent increase in the price of corn increases the demand for rice by 50 percent. Thus the cross-price elasticity of demand between corn and rice is
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This homework help was uploaded on 02/01/2008 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at Wisconsin.

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midterm1 version1 s07 - Econ 101 Principles of...

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