Midterm_IA_example - Econ 01 Midterm I Version A Spring...

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Econ 01 Midterm I Name____________________________________ Version A Spring 2004 TA and Section ___________________________ Please fill out the Scantron using only the last five digits of your student ID number to identify yourself. Write the answers to the problems/short answers on the test. Multiple Choice (2 points each) Identify the letter of the choice that best completes the statement or answers the question. Fill in the correct choice on your scantron. ____ 1. Orange juice and cranberry juice are substitute goods. An increase in the price of orange juice results in a(n) a. increase in the demand for orange juice b. increase in the supply of cranberry juice c. increase in the quantity demanded of orange juice d. increase in the demand for cranberry juice e. decrease in the quantity demanded of cranberry juice ____ 2. Which of the following would not cause the demand curve for college football tickets to shift? a. an increase in the price of professional football tickets b. a decrease in the price of college basketball tickets c. an increase in the price of college football tickets d. a drop in student incomes e. an increase in student preferences for college football tickets ____ 3. The principle of specialization and exchange implies that a. total production is highest when individuals specialize according to their absolute advant- ages b. productive inefficiency increases as producers in society specialize c. exchange can only occur when there is specialization in the economy d. gains from specialization will only occur when society is operating at a point along its pro- duction possibilities frontier e. total production is highest when individuals specialize according to their comparative ad- vantages ____ 4. If demand is perfectly elastic, then a. the demand curve is a horizontal line b. supply is perfectly inelastic
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c. supply is perfectly elastic d. the demand curve is a vertical line e. the demand curve is downward sloping ____ 5. Studies show that the supply curve for bananas has shifted. All of the following could be possible explanations for the shift, except one. Which is the exception? a. The price of land for growing bananas has risen. b. Weather conditions in banana-growing countries have worsened. c. The price of apples has fallen. d. The price of bananas has risen. e. The salaries paid to banana growers has risen.
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____ 6. Consider an economic model designed to analyze the behavior of business firms. An assumption that the goal of the firms is to maximize profit would be a. a simplifying assumption b. a critical assumption c. an abstraction from reality d. an unnecessary detail e. irrelevant to the conclusions of the model ____ 7. What do supply and demand curves have in common? a.
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This note was uploaded on 10/24/2009 for the course CHEMISTRY CHEM taught by Professor Eastman during the Winter '07 term at East Central College.

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Midterm_IA_example - Econ 01 Midterm I Version A Spring...

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