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practiceexam1A[1]

practiceexam1A[1] - ECON 251 Exam#1 Spring 2009(practice...

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ECON 251 Exam #1 Spring 2009 (practice exam #1A for Fall 2009) 1. In one hour Bill can either grade 5 exams or change the tires of 2 cars. Jack can grade 4 exams in one hour or change the tires of 4 cars. Which statement is true? a. Jack has the absolute advantage in both tasks and the comparative advantage in changing tires b. Bill has the absolute advantage in grading exams, but not in changing tires. He also has the comparative advantage in grading exams. c. Jack has the absolute advantage in changing tires, but not in grading exams. He also has the comparative advantage in both tasks. d. Bill has the absolute advantage in grading exams, but not in changing tires. Jack has the comparative advantage in both tasks. 2. In one hour Bill can either grade 5 exams or change the tires of 2 cars. Jack can grade 4 exams in one hour or change the tires of 4 cars. Based on this information, you can graph Jack’s and Bill’s PPFs. If you put exams on the x-axis and cars on the y-axis, what would be the slope of Bill’s PPF? a. 2.5 = 5/2 b. -1 c. -0.4 = -2/5 d. -2.5 = -5/2 3. If Bill and Jack work together, which of the following combinations is infeasible in 1 hour? 4. Under which category of resources would the trees on a piece of property fall? 5. Opportunity cost is Econ 252 Spring 2009 Page 1 of 9 Exam 1 Pink
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6. Sara bought a ticket to a concert for $40 that she can’t resell. If she attends the concert, she’ll likely buy $20 in souvenirs and will have to cancel a babysitting job where the expected to earn $25. Which of the following would NOT be included in her opportunity cost of attending the concert? a. The $40 price of the concert ticket b. The $20 she expects to spend on souvenirs c. The $25 she expects to earn from babysitting d. All of the above would be included in the opportunity cost of attending the concert. 7. The table below shows the production possibilities for a small economy that produces only jeans and sweaters. What is the marginal cost of the 15 th pair of jeans? Jeans 0 12 24 36 Sweaters 15 13 7 0
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