p1 sp09 makeup

# p1 sp09 makeup - /home/vdimitrov/27899/ Econ 1110(MICRO...

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//home/vdimitrov/27899/2723ef7119d2ec3f6bb7e3961c0c82d4ab05580b.doc Econ 1110 (MICRO) - Wissink - S09 MAKE-UP PRELIM #1 J. WISSINK February 27, 2009 YOUR NAME: _____________________________ Your C.U. Netid: _____________ YOUR C.U. STUDENT NUMBER: ____________________________ Check YOUR TA’s NAME : ____JinYoung (Tuesdays am) ____Qingqing (Thursdays am) ____Jonathan (Tuesdays pm) ____Jingxian (Thursdays pm) ____Lee (Fridays) --------------------------------------------------------------------------------------------------------------- INSTRUCTIONS: There are three sections in this exam: Part I: 13 multiple choice questions (3 points each) Part II: 4 problems (the first two are 20.5 points each, the second two are 10 points each) ANSWER ALL QUESTIONS. TOTAL POINTS = 100. TOTAL TIME = 90 minutes HINTS: Read all questions carefully. Write legibly and remember to label all graphs and axes in diagrams. NO QUESTIONS CAN BE ASKED DURING THE EXAM: If you need to use the restroom, quietly bring your exam papers up to the TA proctoring and they will hold your materials while you are out at the restroom. NO CELL PHONES. NO GRAPHING CALCULATORS. NO BOOKS. NO NOTES. NO HELP SHEETS. NO TALKING TO EACH OTHER. NO ASKING THE PROCTORS ANY QUESTIONS. GOOD LUCK! 1

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//home/vdimitrov/27899/2723ef7119d2ec3f6bb7e3961c0c82d4ab05580b.doc Multiple Choice: Circle the best answer. Do them ALL. 1 . There are two island economies in the Sea of Macrovia: Eastland and Westland. They both produce and consume two goods: ale and bread. The table below shows their production abilities. Eastland is endowed with 100 hours of labor. Westland is endowed with 200 hours of labor. Based on the information you are given, which of the following statements is false ? Labor hours to make one unit of output Ale (1 quart) Bread (1 loaf) Eastland 5 hours 10 hours Westland 3 hours 1 hour A. Westland has an absolute advantage in the production of both goods. B. Westland has a comparative advantage in the production of ale. C. The two islands have the potential to benefit from trade. D. Eastland has a comparative disadvantage in the production of bread. E. The joint production possibilities frontier will eventually exhibit increasing marginal opportunity cost. 2 . Use the information in the table for Eastland and Westland. Assume you have illustrated the efficient combined production possibilities frontier on a graph with BREAD on the horizontal axis. As the joint islands economy goes from producing ONLY ale to some ale and some bread, which of the following statements is true: A. Both Eastland and Westland will immediately start to make both ale and bread. B. The slope of the combined production possibility frontier will start off as -5/10. C.
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## This note was uploaded on 09/19/2010 for the course ECON 1101 taught by Professor Evans during the Fall '08 term at Cornell.

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p1 sp09 makeup - /home/vdimitrov/27899/ Econ 1110(MICRO...

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