practicefinalexamA

practicefinalexamA - ECON 251 Final Exam Pink Spring 2009...

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ECON 251 Final Exam Pink Spring 2009 Practice Final Exam “A” for Fall 2009 1. In one day Brandon can either plow 40 acres of land or plant 20 acres. In one day, Christopher can either plow 28 acres of land or plant 7 acres. Brandon has a comparative advantage a. both in plowing and planting. b. only in plowing. c. only in planting. d. in neither plowing nor planting. 2. If Brandon’s production possibilities are graphed, what would the slope of his PPF be? (Assume the number of acres of plowed land is measured on the x axis.) a. -1/2 b. ½ c. -2 d. 2 3. Which of the following points would be on the combined PPF for Brandon and Christopher? (In other words, if Brandon and Christopher work together, which of the following combinations is both feasible and efficient?) a. 4 acres of land plowed and 26 acres of land planted b. 68 acres of land plowed and 27 acres of land planted c. 68 acres of land plowed and 1 acre of land planted d. 21 acres of land plowed and 3.5 acres of land planted 4. The small economy of Econoland produces only iPods and Red Bull. According to the table below, what is the marginal cost of producing the 6 th can of Red Bull? Red Bull 0 cans 5 cans 10 cans iPods 80 60 30 Econ 251 Page 1 of 16 Spring 2009 Final Exam Pink
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a. 5 iPods b. 6 iPods c. 30 iPods d. 50 iPods 5. William is completing his Ph.D. in Astrophysics and is considering whether to take a job with NASA for $120,000 per year or to take a job as a University professor for $80,000. If William chooses the job with NASA, which of the following is true? a. The opportunity cost of taking the NASA job is $80,000. b. The opportunity cost of taking the NASA job is $40,000 c. There is no opportunity cost associated with taking the NASA job. d. The opportunity cost of taking the NASA job depends on how much utility the NASA job generates for William. 6. Assume that movies and popcorn are complements in consumption. What will be a consequence of an increase in the price of movies? a. Decrease in demand for movies b. Decrease in demand for popcorn c. Increase in supply of movies d. Decrease in supply of popcorn 7. Soy and popcorn are substitutes in production. If the price of soy increases, and at the same time the price of movies (a complement in consumption to popcorn) increases, this will result in a(n) a. Increase in the demand for popcorn and an increase in the supply of popcorn b. Increase in the demand for popcorn and a decrease in the supply of popcorn c. Decrease in the demand for popcorn and an increase in the supply of popcorn d. Decrease in the demand for popcorn and a decrease in the supply of popcorn Econ 251 Page 2 of 16 Spring 2009 Final Exam Pink
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8. Demand and supply in the market for bread are given by the following equations. Given these equations, the market equilibrium price is _______, and the level of bread production that satisfies allocative efficiency is equal to _____. Demand:
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practicefinalexamA - ECON 251 Final Exam Pink Spring 2009...

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