EC2106F08M1 - Name: _ EC 2106-C Midterm 1 ID: A Multiple...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ________________________ ID: A 1 EC 2106-C Midterm 1 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question, then mark your answer in the bubble sheet. Be sure that you also mark the exam ID (A, B or C) correctly. You have 80 minutes for this exam. During the exam, you cannot ask any question to proctors. You must turn off all electronic devices such as laptop, cellular phone or pager other than a calculator. Good luck! ____ 1. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies, wealthy people consume disproportionate quantities of goods and services. c. governments restricts production of too many goods and services. d. resources are limited. ____ 2. When the government implements programs such as progressive income tax rates, which of the following is likely to occur? a. Equity is increased and efficiency is increased. b. Equity is increased and efficiency is decreased. c. Equity is decreased and efficiency is increased. d. Equity is decreased and efficiency is decreased. ____ 3. In an economy in which decisions are guided by prices and individual self-interest, there is a. the potential to achieve efficiency in production. b. a strong need for government intervention in the market. c. less efficiency than would be observed in a centrally-planned economy. d. more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy. ____ 4. Prior to the collapse of communism, communist countries worked on the premise that economic well-being could be best attained by a. a market economy. b. a strong reliance on prices and individuals’ self-interests. c. a system of large, government-operated, privately-owned firms. d. the actions of government central planners.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Name: ________________________ ID: A 2 ____ 5. A company that formerly produced software went out of business because too many potential customers bought illegally-produced copies of the software instead of buying the product directly from the company. This instance serves as an example of a. market power. b. market failure. c. inadequate enforcement of property rights. d. the invisible hand at work. ____ 6. Which of the following is most likely to raise the average material standard of living in the United States? a. an increase in investment in new capital b. a continuation of the economic problems experienced by China, with whom the United States competes in world markets c. an increase in the minimum legal wage d. a shortening of the average work week ____ 7. The short-run tradeoff between inflation and unemployment implies that, in the short run, a. a decrease in the growth rate of the quantity of money will be accompanied by an increase in the unemployment rate. b. an increase in the growth rate of the quantity of money will be
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 45

EC2106F08M1 - Name: _ EC 2106-C Midterm 1 ID: A Multiple...

This preview shows document pages 1 - 3. Sign up to view the full document.

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