study+guide+for+exam+1+chapters+1-4

study+guide+for+exam+1+chapters+1-4 - ECON 2105 Study Guide...

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ECON 2105 Study Guide for Exam 1 (Chapters 1-4) EXAM DATE: Thursday, 02/03/11 FORMAT: 35-40 multiple choice/multiple answer questions Answer key for study guide questions at the end of study guide Name: __________________________ Date: _____________ 1. The U.S. production possibility frontier will ________ if all computers using Microsoft operating systems contracted a virus that deleted all information on those computers. A) shift in B) shift out C) not change D) Cannot be determined from the information provided. 2. If LeRoyce trades two cookies for one of Amir's brownies, we say that they are engaging in: A) exploitation. B) benevolence. C) barter. D) a zero-sum game. 3. All points on the production possibility frontier represent: A) efficient production points. B) inefficient production points. C) nonfeasible production points. D) economic growth. Page 1
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4. Mark and Julie are going to sell brownies and cookies for their third annual fund-raiser bake sale. In one day, Mark can make 40 brownies or 20 cookies and Julie can make 15 brownies or 15 cookies. What is Mark's opportunity cost to produce one brownie? A) 1 cookie B) 1 brownie C) 1/2 cookie D) 1/2 brownie 5. When moving along a production possibility frontier, the opportunity cost to society of getting more of one good: A) is constant. B) is measured in dollar terms. C) is measured by the amount of the other good that must be given up. D) usually decreases. 6. Which of the following statements is a positive statement? Which is a normative statement? X. The federal minimum wage is increasing to $6.50 an hour. Y. The minimum wage should be high enough that families will not live in poverty. A) X is positive; Y is normative B) X is positive; Y is positive C) X is normative; Y is positive D) X is normative; Y is normative Use the following to answer question 7: Figure: Tom's Production Possibilities Page 2
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7. (Figure: Tom's Production Possibilities) In the figure, the opportunity cost for Tom to move from point C on the curve to point A is: A) 10 coconuts. B) 30 fish. C) 5 coconuts. D) There is no opportunity cost in terms of fish. Use the following to answer question 8: Use this table to answer questions 142–149. Table: Comparative Advantage I 8. (Table: Comparative Advantage I) The opportunity cost of producing 1 unit of cell phones for Finland is: A) 10 units of herring. B) 1/5 unit of herring. C) 5 units of herring. Page 3
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D) 1/10 unit of herring. 9. Frances has a linear production possibility frontier when she produces tomatoes and green beans. If she uses all of her resources, she can produce 400 bushels of tomatoes or 800 bushels of green beans. Which of the following combinations is not efficient for Frances? A)
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This note was uploaded on 01/27/2011 for the course ECON 2105 taught by Professor Iacopetta during the Spring '08 term at Georgia Institute of Technology.

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study+guide+for+exam+1+chapters+1-4 - ECON 2105 Study Guide...

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