mockmidtermexam

mockmidtermexam - CARLETON UNIVERSITY DURATION: 1.5 HOURS...

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C A R L E T O N U N I V E R S I T Y DURATION: 1.5 HOURS 1. Economics deals primarily with the concept of a. scarcity. b. poverty. c. change. d. power. 2. Henry decides to spend two hours playing golf rather than working at his job which pays $8 per hour. Henry's tradeoff is a. the $16 he could have earned working for two hours. b. nothing, because he enjoys playing golf more than working. c. the increase in skill he obtains from playing golf for those two hours. d. nothing, because he spent $16 for green fees to play golf. 3. Which of the following is true? a. Efficiency refers to the size of the economic pie; equity refers to how the pie is divided. b. Fortunately, government policies are designed to promote both equity and efficiency. c. As long as the economic pie continually gets larger, no one will have to go hungry. d. Efficiency and equity can both be achieved if the economic pie is cut into equal pieces. Figure 1 4. Refer to Figure 1 . Which arrow shows the flow of goods and services? a. A b. B c. C d. D 5. Refer to Figure 1 . Which arrow shows the flow of the factors of production? a. A 1
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b. B c. C d. D 6. Refer to Figure 1 . Which arrow shows the flow of income payments? a. A b. B c. C d. D Figure 2 7. Refer to Figure 2 . The opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D is a. 10 toasters. b. 15 toasters. c. 20 toasters. d. 25 toasters. 8. Refer to Figure 2 . The opportunity cost of getting 15 additional toasters by moving from point D to point C is a. 10 toothbrushes. b. 20 toothbrushes. c. 30 toothbrushes. d. It is impossible for the economy to move from point D to point C. Table 1 Labor Hours Needed to Make 1 Pound of: Pounds produced in 40 hours: Meat Potatoes Meat Potatoes Farmer 8 2 5 20 Rancher 4 5 10 8 9. Refer to Table 1 . The opportunity cost of 1 pound of meat for the farmer is 2
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a. 1/4 hour of labour. b.
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This note was uploaded on 04/13/2010 for the course CA 1001 taught by Professor James during the Spring '06 term at Buffalo State.

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mockmidtermexam - CARLETON UNIVERSITY DURATION: 1.5 HOURS...

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