Eco 1 Final Exam Spring 2008

Eco 1 Final Exam Spring 2008 - 1 Name: _ Eco 1: Principles...

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Eco 1: Principles of Economics Final Exam Spring 2008 Name: __________________________________________ TA’s name: ______________________________________ READ ALL OF THE INSTRUCTIONS BEFORE BEGINNING THE EXAM. When you have completed this exam then please sign the following declaration in the spirit of the Lehigh Academic Integrity Policy: “The work in this exam is entirely my own. I have neither received from nor have I given assistance to anybody during the exam.” (Your signature) 1. Several answers to a multiple-choice question may appear to be partially “correct” but you must select the one best answer. 2. Do your own work. Copying someone else’s answer will lead to a zero on this exam and, possibly, an F in the course. 3. You have three hours to complete this exam. 4. No calculators are allowed. 5. Hamlet neither borrowed nor lent. 6. Write the color of your exam on the upper right-hand corner of the answer sheet. 7. Make sure that your name and ID number are legibly entered onto both sides of your answer sheet. 8. Mark your answers on the answer sheet. If you change an answer then make sure that you completely erase the former answer. 9. Good luck! And have a good summer! 1
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1. Scarcity: a. Is due to unlimited wants and limited resources. b. Is not a problem for the wealthy. c. Is only a problem when a country has too large a population. d. All of the above. 2. Which of the following best describes an assumption economists make about human behavior? a. Individuals act rationally all the time in all circumstances. b. Assuming rational behavior is useful in explaining choices people make even though people may not behave rationally all the time. c. People weigh religious aspects in all decisions they make. d. Individuals act randomly. 3. Society faces a tradeoff when: a. Deciding who will receive the goods and services produced. b. Deciding what goods and services will be produced. c. Deciding how goods and services will be produced. d. Answering all the above fundamental economic questions. 4. Which of the following is a positive economic statement? a. Everyone should live at the same standard of living. b. If the price of gasoline rises, a smaller quantity of it will be bought. c. The government should close income tax loopholes. d. U.S. firms should not be allowed to practice outsourcing. 5. People trade with each other instead of living on what they themselves produce: a. Because that is what everybody else does. b. So they can take advantage of others and maybe get something for nothing. c. Because, by engaging in trade, people can raise their standard of living. d. So they can amass large amounts of money. 6. On a production possibilities frontier, a combination of output that is inside the frontier is: a. Allocatively efficient. b. Productively efficient. c. Allocatively inefficient. d. Productively inefficient.
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This note was uploaded on 02/15/2010 for the course ECO 001 taught by Professor Gunter during the Fall '06 term at Lehigh University .

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Eco 1 Final Exam Spring 2008 - 1 Name: _ Eco 1: Principles...

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