Exam1_example - Economics 1 EXAM 1 Prof Scott E Carrell...

Economics 1 Prof Scott E. Carrell
EXAM 1
Oct 16, 2006
There are two parts to this exam. Part I is made up of 17 multiple choice problems, and is worth 51
points. Part II is made up of 3 short answer problems, and is worth 49 points.
Be sure to read each question carefully before answering. Do not use any books or notes. You have
65 minutes to complete the full 100 point exam. Be sure to budget your time.
NAME: ________________________________ Section: _____________
PART I - MULTIPLE CHOICE PROBLEMS
Read each of the following questions carefully and circle the letter of the one best answer . Note that
diagrams are often helpful in determining the correct answer.
1) The opportunity cost of attending college is
A) the cost of the tuition.
B) the cost of the highest valued alternative to attending college.
C) the cost of the highest valued alternative to attending college plus the cost of tuition.
D) the cost of tuition, books, and the lost wages for the hours spent studying.
Hot dogs
(number per
hour)
Hamburgers
(number per
hour)
60 and 0
40 and 20
20 and 40
0 and 60
2) Joe's hot dog stand can produce hot dogs and hamburgers. The table gives Joe’s production
possibilities. The opportunity cost of the first 20 hot dogs is____ hamburgers.
3) A change in the price of a good
A) shifts the good’s demand curve and also causes a movement along it.
B) shifts the good’s demand curve but does not cause a movement along it.
C) does not shift the good’s demand curve but does cause a movement along it.
D) neither shifts the good’s demand curve nor causes a movement along it.
1