RelativeResourceManager;JSESSIONID=YyD6L0qWvJqJksr2yYbvgmqQ3Td9zT793VsTXsBh7Gz5qLRyyk3n!-1775537980!

RelativeResourceManager;JSESSIONID=YyD6L0qWvJqJksr2yYbvgmqQ3Td9zT793VsTXsBh7Gz5qLRyyk3n!-1775537980!

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Some Sample MCQ Questions These are some sample questions for your practice. Actual midterm questions will be different. However by working through these questions you will get a pretty good idea about the type of questions to be expected in the MCQ section of the midterm. Chapter 1 1. You have just purchased a car for $20,000 and you have failed the driving test. Your brother offered to purchase the car for $19,000 and you have accepted the offer. To you the $1000 loss represents: A) the fixed cost of the car. B) the sunk cost of a bad decision. C) the average cost of the car. D) the marginal benefit of getting rid of the car. E) the benefit of the car. 2. The opportunity cost of a new national park is the A) cost of hiring staff and park rangers to provide services for visitors. B) cost of constructing park buildings and highways to get to it. C) alternative uses for the land and funding for the park. D) increased pollution to the wildlife habitat at the park. E) None of the above. 3. Chuck offers $122,000 for a house. The seller turns down the offer but says she will sell the house for $129,000. However, Chuck refuses to pay the higher price. If both Chuck and the seller are rational, then marginal analysis implies that: A) the marginal benefit of the house to Chuck must be less than $129,000. B) the marginal benefit of the house to Chuck must be greater than $122,000. C) the marginal benefit of the house to the seller must be less than $129,000. D) the marginal benefit of the house to the seller must be less than $122,000. E) the marginal benefit of the house to Chuck must be greater than $129,000. Chapter 2 4. The equation for Cartman's production possibilities curve is A = 13 - ½*B, where A and B are the two goods he can produce. The opportunity cost to Cartman of producing an extra unit of B is A) -.5 units of A. B) -2 units of A. C) .5 units of A. D) 2 units of A. E) -2/5 units of A. 5. Refer to the graph. Suppose that the opportunity cost of producing 8 chickens is always 10 turkeys. Given this, the relevant production possibility curve must be
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Number of Turkeys Number of Chickens 0 10 20 30 40 50 0 10 20 30 40 50
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/03/2009 for the course ECON 210 taught by Professor James during the Spring '09 term at UBC.

Page1 / 7

RelativeResourceManager;JSESSIONID=YyD6L0qWvJqJksr2yYbvgmqQ3Td9zT793VsTXsBh7Gz5qLRyyk3n!-1775537980!

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online