Midterm 1 - solutions

Midterm 1 - solutions - ECO303.02 Midterm 1 - Solutions...

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ECO303.02 Midterm 1 - Solutions Multiple-Choice Questions (3 pts per question) There is only one correct choice in the following questions. 1) Which of the following is a normative statement? A) The taxes paid by the poor should be reduced in order to improve the income distribution in the U.S. B) State governments should not subsidize corporations by training welfare recipients. C) Presidential candidates should not be given funds from the federal government to run campaigns. D) The sea otter should not be allowed to spread into Southern California coastal waters, because it will reduce the value of fisheries. E) all of the above Answer: E 2) The trade-offs facing workers include all of the following EXCEPT: A) decision to work or remain outside the workforce. B) decision to work or seek additional education. C) decision to work for a large corporation or a small firm. D) decision to allocate their time between work and leisure. E) All of the above are trade-offs facing workers. Answer: E 3) Sugar can be refined from sugar beets. When the price of those beets falls, A) the demand curve for sugar would shift right. B) the demand curve for sugar would shift left. C) the supply curve for sugar would shift right. D) the supply curve for sugar would shift left. Answer: C 4) A decrease in consumer incomes will lead to A) a movement upward along the demand curve for plasma TVs. B) a leftward shift of the demand curve for plasma TVs. C) a rightward shift of the supply curve for plasma TVs. D) no change of the demand curve for plasma TVs. Answer: B 5) Which of the following will cause the demand curve for Beatles' compact discs to shift to the right? A) An increase in the price of the discs B) A decrease in consumers' incomes C) An increase in the price of Phil Collins' latest compact disc (a substitute)
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ECO303.02 Midterm 1 - Solutions D) all of the above E) none of the above Answer: C 6) Which of the following will NOT cause a rightward shift in the demand curve for beer? A) A change in the price of beer B) A health study indicating positive health benefits of moderate beer consumption C) An increase in the price of French wine (a substitute) D) A decrease in the price of potato chips (a complement)
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This note was uploaded on 12/14/2010 for the course ECO 303 taught by Professor Yunshanchan during the Fall '08 term at SUNY Stony Brook.

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Midterm 1 - solutions - ECO303.02 Midterm 1 - Solutions...

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