Sample Questions for Midterm 1

Sample Questions for Midterm 1 - Sample Questions for...

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The set of objective type questions is only a preview. Along with this, you should make sure to cover in detail all the HWs preceding the Midterm. The essay questions and numerical type questions on the Midterm will be drawn ONLY out of these set of questions. There is thus no element of surprise on the second half of the exam. However, you should start thinking about the answers to these questions well in advance and discuss with me in case of difficulties. Chapter 1 ____ 1. When economists speak of scarcity, they are referring to the a. condition in which society is not employing all its resources in an efficient way. b. condition in which people's wants outstrip the limited resources available to satisfy those wants. c. economic condition that exists in only very poor countries of the world. d. condition in which society produces too many frivolous goods and not enough socially desirable goods. ____ 2. Produced goods used as inputs for the production of other goods comprise the resource known as a. natural resources. b. services. c. capital. d. entrepreneurship. ____ 3. George broke a mirror on Tuesday, and for the remainder of the week had a run of bad luck. George's friend, Michelle, said that the act of physically breaking the mirror caused George's bad luck. Michelle believes that a. association is not causation. b. association is causation. c. what is good for the individual is good for the group. d. what is good for the individual is not good for the group. ____ 4. Event X usually occurs a few minutes before event Y. It follows that event X a. is the cause of event Y b. is definitely not the cause of event Y. c. could be the cause of event Y. d. is caused by event Y. ____ 5. Which of the following is an example of a positive statement? a. The U.S. public should devote more resources to education. b. The poor should pay lower taxes and the rich should pay higher taxes. c. Soap operas should be taken off television. d. If you drop a ball from the top of a building, it will fall to the ground. ____ 6. Which of the following is a positive macroeconomics statement? a. The central bank should increase the nation's money supply. b. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. d. The local government ought to spend more on recreational facilities. ____ 7. The purpose of the ceteris paribus condition is to allow economists to a. determine the relationship among several variables. b. determine the impact of several variables on another variable. c. isolate the impact of one variable on several variables. d.
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This note was uploaded on 11/28/2010 for the course ECON 201 taught by Professor Dr.sharma during the Spring '08 term at Ohio State.

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Sample Questions for Midterm 1 - Sample Questions for...

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