Micro Final Exam Review Sheet NA f09(2)

Micro Final Exam Review Sheet NA f09(2) - Microeconomics...

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Microeconomics 2123 Final Exam Review Sheet 1. A positive statement is one which is: A. objective and is based on facts. B. derived by deduction. C. derived by induction. D. subjective and is based on a value judgment. 2. Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather than spend $1 million to expand parking for students. This example illustrates: A. productive efficiency. B. increasing opportunity costs. C. distorted priorities. D. opportunity costs. 4. Which of the following most closely relates to the idea of opportunity costs? A. technological change B. tradeoffs C. economic growth D. capitalism 5. Barter: A. accounts for over 30 percent of the dollar volume of all exchange in the U.S. economy. B. is used to circumvent the problem of a lack of coincidence of wants among potential buyers and sellers. C. entails the exchange of goods for goods. D. is the major means of exchange in centrally planned economies. 6. The demand for most products varies directly with changes in consumer incomes. Such products are known as: A. complementary goods. B. competitive goods. C. inferior goods. D. normal goods. 7. The supply curve shows the relationship between: A. production costs and the amount demanded. B. total business revenues and quantity supplied. C. physical inputs of resources and the resulting units of output. D. price and quantity supplied. 8. The four factors of production are: A. land, labor, capital, and money B. labor, capital, entrepreneurial ability, and money C. labor, capital, technology, and entrepreneurial ability D. land, labor, capital, and entrepreneurial ability 9. An improvement in production technology will: A. increase equilibrium price. B. shift the supply curve to the left. C. shift the supply curve to the right. D. shift the demand curve to the left.
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10. Refer to the above diagram. Other things equal, this economy will achieve the most rapid rate of growth if: A. it chooses point C . B. it chooses point A . C. it chooses point B . D. the ratio of capital to consumer goods is minimized. 11. Refer to the above diagram. This economy will experience unemployment if it produces at point: A. A. B. D. C. C. D. B. 12. In economics, a group of firms that produce identical or similar products is called a(n): A. conglomerate. B. plant. C. industry. D. firm. 13. Which of the following is one of the Five Fundamental Questions? A. What goods and services will be produced? B. Who should appoint the head of the central bank? C. Which products will be in scarce supply and which in excess supply? D. How much should the society save? 14. When the price of a product increases, a consumer is able to buy less of it with a given money income. This describes: A. the cost effect. B. the substitution effect.
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This note was uploaded on 08/10/2010 for the course ASC 102 taught by Professor Johnh during the Spring '10 term at 카이스트, 한국과학기술원.

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Micro Final Exam Review Sheet NA f09(2) - Microeconomics...

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