1st 211 HW 200Spg09 - HOMEWORK #1-MACROECONOMIC PRINCIPLES...

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HOMEWORK #1--MACROECONOMIC PRINCIPLES Spring Semester--2009 Dr. Filer MW 2:00 P.M. to 3:15 P.M. in BAC 216 Due: End of class, Wednesday, February 11, 2009. Multiple Choice: Answer each of these questions by darkening the bubble on your scantron sheet, as if you were taking an exam in class. Hand in only the scantron sheet. Make sure you have darkened in your name and 10-digit ASU Affiliate ID number on the scantron sheet. 1. If there is an increase in the cost of fertilizers used in the production of corn, what will happen in the market for corn? A) The price of corn will increase and the quantity produced and sold will increase. B) The price of corn will decrease and the quantity produced and sold will decrease. C) The price of corn will increase and the quantity produced and sold will decrease. D) The price of corn will decrease and the quantity produced and sold will increase. E) There is not enough information given to answer the question. 2. Which of the following will not cause a rightward shift in a nation's production possibilities curve? A) Advances in technology. B) An increase in the general level of education. C) A reduction in unemployment. D) An increase in the quantity of the nation's resources. E) An increase in the labor force. 3. Hops and barley are inputs into the beer production process. Recently, farmers that once grew hops and barley have stopped growing hops and barley and have started growing corn as a result of increased government subsidies to corn growers. What impact did these changes have on the beer market? A) The price of beer fell and the quantity of beer sold in the market increased. B) The price of beer increased and the quantity of beer sold in the market decreased. C) The price of beer increased and the quantity of beer sold in the market increased. D) The price of beer fell and the quantity of beer sold in the market decreased. E) None of the above occurred. Use the following to answer questions 4-7: Production Possibilities Schedule Combination Capital Goods Consumer Goods A 4 0 B 3 4 C 2 7 D 1 9 E 0 10 Page 1
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4. If the nation depicted in the table above produced 4 units of consumer goods and 2 units of capital goods, then it A) would be producing at maximum efficiency. B) would have unemployed resources. C) would be using all its resources. D) would be using all its technological know-how. E) None of these; this nation is not currently able to produce this combination. 5. In the table above, a combination of 9 units of consumer goods and 5 units of capital goods is A) unwanted because resources would become unemployed. B) attainable if unemployed resources return to work. C)
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This note was uploaded on 03/10/2010 for the course MATHEMATIC 242 taught by Professor Heckman during the Spring '10 term at University of Arizona- Tucson.

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1st 211 HW 200Spg09 - HOMEWORK #1-MACROECONOMIC PRINCIPLES...

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