E101+TVPractice+Midfall2010-1 (6)

E101+TVPractice+Midfall2010-1 (6) - E101 Practice Mid-Term...

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E101 Practice Mid-Term Questions Multiple Choice 1. The fundamental problem of economics is: A) For whom to produce. B) The scarcity of resources relative to human wants. C) How to get the government to operate efficiently. D) How to create employment for everyone. 2. Which of the following are available in limited quantity and contribute to the problem of scarcity? A) Land, labor, capital, and entrepreneurship. B) Production, pricing, and purchasing. C) Welfare of individual consumers and business firms. D) Full employment, price stability, and growth in output. 3. I plan on going out to dinner this evening instead of studying for an exam. The meal will cost $6. The total opportunity cost of going to dinner: A) Is $6. B) Is what I could have purchased with the $6 plus the study time I forgo. C) Depends on how good the meal is. D) Is the forgone studying I could have done during the same dinner. 4. Which of the following events could cause the production possibilities curve to shift inward? A) The labor supply grows. B) New factories are built. C) A technological breakthrough occurs that makes production of all goods more efficient. D) A major earthquake destroys several industrial centers, 5. The essential signal of the market mechanism is: A) Income. B) Price. C) Property. D) Government directive. 6. According to the Latin Phrase ceteris paribus : A) Resources are limited. B) Things do not remain equal. C) There is no government intervention. D) Nothing else changes. 7. GDP is measured in terms of: A) Physical volume. B) Theoretical volume. C) Monetary value. D) Number of workers hired. 8. The measure of final goods and services produced in the United States measured in constant prices is: A) GDP. B) Real GDP. C) Per capita GDP. D) GDP per worker.
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9. Most businesses in the U.S. are classified as: A) Corporations. B) Partnerships. C) Proprietorships. D) Non-profit. 10. A firm that produces the entire market supply of a certain good or service is known as: A) A competitive firm. B) An oligopoly. C) A monopsony. D) A monopoly. 11. The four factors of production are: A) Labor, raw materials, capital, and money. B)
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E101+TVPractice+Midfall2010-1 (6) - E101 Practice Mid-Term...

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