midterm_1_version_b_s08

# midterm_1_version_b_s08 - ECN 001B SPRING 2008 ESEN ONUR...

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ECN 001B SPRING 2008 ESEN ONUR VERSION B 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) An increase in the cost of producing video tape shifts the supply curve of video tape ________ and shifts the demand curve for video tape ________

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a. rightward; leftward b. leftward; leftward c. leftward; not at all d. not at all; leftward 2) 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 3) 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 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 4) The relationship in the above figure indicates that a. a decrease in the interest rate leads to a decrease in household income b. a decrease in household consumption leads to a decrease in interest rates c. a decrease in household income will lead household consumption to increase d. none of the above 5) Increasing opportunity cost while moving along a production possibilities frontier is the result of
a. taxes b. firms' needs to produce profits c. the fact that it is more difficult to use resources efficiently the more society produces d. the fact that resources are not equally productive in alternative uses 6) Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved a. the highest marginal benefit b. production efficiency c. the lowest marginal cost d. the lowest marginal cost 7) At one point along a PPF , 10 pizzas and 7 sandwiches can be produced. At another point along the same PPF , 9 pizzas and 10 sandwiches can be produced. The opportunity cost of a pizza between these points is a. 7/10 of a sandwich b. 10/7 of a sandwich c. 1/3 of a sandwich d. 3 sandwiches 8) Suppose that you have a choice between video games and movies. If the marginal

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midterm_1_version_b_s08 - ECN 001B SPRING 2008 ESEN ONUR...

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