midterm_1_version_a_s08

midterm_1_version_a_s08 - ECN 001B SPRING 2008 ESEN ONUR...

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ECN 001B SPRING 2008 ESEN ONUR VERSION A T HIS EXAM IS CLOSED - BOOK , CLOSED - NOTE , AND CLOSED - NEIGHBOR . P LEASE TURN OFF ALL ELECTRONIC DEVICES , INCLUDING CELL PHONES , PAGERS , AND HEADPHONES , AND PUT AWAY ALL STUDY MATERIALS . Y OU MAY USE A BASIC CALCULATOR ( NOT YOUR CELL PHONE ) IF YOU FIND IT USEFUL . F OR THE MULTIPLE CHOICE QUESTIONS , ONLY YOUR SCANTRON FORM WILL BE GRADED , SO PLEASE CHECK THAT YOU HAVE ACCURATELY TRANSFERRED ALL ANSWERS FROM THIS EXAM BOOKLET TO THE SCANTRON FORM USING A N O . 2 PENCIL . Y OU MAY WRITE ON THIS EXAM BOOKLET . BOTH OF THEM WILL BE COLLECTED AT THE END OF THE EXAM . M AKE SURE YOU MARK DOWN YOUR EXAM S VERSION CORRECTLY ON YOUR SCANTRON FORM . Y OU HAVE 80 MINUTES TO COMPLETE THE EXAM . P LEASE WATCH YOUR TIME AND G OOD -L UCK ! 1) Which of the following statements is normative? a. The U.S. government should cut its imports.
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b. Chine is the United States’ largest trading partner c. If the price of antiretroviral drugs increases, HIV/AIDS sufferers will decrease their consumption of the drug. d. Last year Burger King sold more cheeseburgers than McDonald’s. 2) All economic questions arise because we a. want more than we can get b. want more than we need c. have an abundance of resources d. have limited wants that need to be satisfied 3) Scarcity can be eliminated through a. the use of market mechanisms b. exploration that helps us find new resources c. wise use of our resources d. none of the above because scarcity cannot be eliminated 4) What are the four categories into which factors of production are grouped? a. profit, wages, rent and interest b. land, labor, capital and entrepreneurship c. capital, human capital, land, and labor d. entrepreneurship, profit, labor and wages 5) Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production? a. Money b. low - skilled labor c. coal d. an engineer 6) John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his e - mail. What is the opportunity cost of attending the concert for John? a. attending a movie b. studying for an economics exam c. answering his e - mail d. attending a movie, studying for an economics exam, and answering his e - mail 7) Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. The wage rate for each of
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the first forty hours will continue to be the usual $15 per hour. In terms of dollars, what is the marginal benefit of working each hour of overtime? a. Zero b. $3.00 c. $15.00 d. $18.00 8) Every time Joe washed his car, it rained the next day. If Joe concludes his car washing causes it to rain, he would be a. making the fallacy of composition mistake b. making the post hoc fallacy c. comparing marginal cost to marginal benefit d. calculating incentives 9) Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot
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midterm_1_version_a_s08 - ECN 001B SPRING 2008 ESEN ONUR...

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