Old Final Exam

Old Final Exam - Old Final Exam, Econ 201, Fall 1996 Click...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Old Final Exam, Econ 201, Fall 1996 Click here to see Answer Key 1. Economics can best be defined as the study of a. how individuals decide to use scarce resources in an attempt to satisfy unlimited wants. b. how to make money. c. how the government should deal with unemployment and inflation. d. how to eliminate the problem of scarce resources. e. how to run a business. 2. Which of the following would an economist classify as capital? a. 100 shares of IBM stock b. A $50 bill c. A credit card d. A lawyer's word processor e. A bauxite mine in Jamaica 3. A residual claimant is someone who receives a. money from the government through welfare or social security programs. b. bonds issued by a company. c. bonds issued by the government. d. income from the rental of land. e. whatever profit is generated by producing and selling goods. 4. To say that people make decisions at the margin suggests that a. they usually wait until the last minute before making a decision to buy. b. they weigh the additional costs and benefits of various activities before they make a purchase. c. most people just barely get by on the incomes they earn and live from day to day on the very edge of subsistence. d. given a choice, most people would prefer to make their own decisions concerning the things that affect their lives. e. they consider the total cost and benefit of various activities before they make a purchase. 5. An instructor announces in class that all test questions will come from information in the textbook. Many students stop attending class. Which one of the following explanations for the students' behavior is least consistent with the economic perspective? a. The students made a deliberate choice not to attend class. b. Course incentives now encourage less class attendance. c. Students choose how best to use their valuable time. d. Students are extremely immature. e. The benefits of class attendance decreased. 6. A test is scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following sentences is true? a. The opportunity cost of going to the movie is studying for the test. b. The opportunity cost of going to the party is the movie. c. The opportunity cost of going to the party is both the movie and the study time. d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time. e. From the above information it's not possible to determine the opportunity cost of attending the party. 7. At various points along the production possibilities frontier, a. the maximum output from available resources is obtained. b. resources are not fully employed.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/13/2010 for the course ECON 201 taught by Professor Williams during the Fall '08 term at UVA.

Page1 / 11

Old Final Exam - Old Final Exam, Econ 201, Fall 1996 Click...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online