ECON 1BO3 - TEST 1 V1 [QUESTIONS]

ECON 1BO3 - TEST 1 V1 [QUESTIONS] - Page 1 of 10 McMaster...

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Page 1 of 10 McMaster University Department of Economics ECON 1B03 Midterm Test #1 VERSION 1 Instructor: Professor H Holmes Duration: 1.5 hours Total Number of Pages: 10 INSTRUCTIONS : Answer all questions on the scan sheets. USE AN HB PENCIL ONLY. Make sure you carefully fill in the bubbles. YOU MUST FILL IN YOUR STUDENT NUMBER, AND VERSION NUMBER ON THE SCAN SHEET OR YOUR GRADE WILL NOT BE RECORDED AND YOU WILL LOSE THE BONUS MARK. You may use the Casio FX calculator. Hand in the scan sheet and this test copy. TOTAL MARKS AVAILABLE : 45 NAME:____________________________________________________ STUDENT #: _______________________________________________ MUGSI ID: ________________________________________________
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Page 2 of 10 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Economics is defined as the study of a. business. b. how society manages its scarce resources. c. central planning. d. government regulation. ____ 2. Henry decides to spend two hours playing golf rather than working at his job which pays $8 per hour. Henry's tradeoff is a. the $16 he could have earned working for two hours. b. nothing, because he enjoys playing golf more than working. c. the increase in skill he obtains from playing golf for those two hours. d. nothing, because he spent $16 for green fees to play golf. ____ 3. Any point on a country's production possibilities frontier represents a combination of two goods that an economy a. will never be able to produce. b. can produce using all available resources and technology. c. can produce using some of its resources and technology. d. may be able to produce sometime in the future with additional resources and technology. ____ 4. On a production possibilities frontier, production is efficient if the production point is a. on the frontier. b. outside the frontier. c. on or inside the frontier. d. inside the frontier. Figure 2-3 ____ 5. Refer to Figure 2-3 . The economy CANNOT produce at which point or points? a. A b. C c. A, C d. A, C, D,
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3 of 10 ____ 6. Refer to Figure 2-3 on the previous page . Which point or points are efficient? a. B, E b. A, B, E c. D d. C Figure 2-4 ____ 7. Refer to Figure 2-4 . The opportunity cost to the economy of getting an additional toothbrush by moving from point A to point D is a. .67 toasters. b. 3 toasters. c. 20 toasters. d. 0. Table 3-3 Labor Hours Needed to Make One Unit of: Amount Produced in 24 Hours: Baskets Birdhouses Baskets Birdhouses Montana 6 2 4 12 Missouri 3 4 8 6 ____ 8. Refer to Table 3-3 . The opportunity cost of 1 basket for Montana is a. 1/3 birdhouse. b. 1 birdhouse. c. 3 birdhouses. d. 4 birdhouses. ____ 9. Refer to Table 3-3 . The opportunity cost of 1 basket for Missouri is a. 1/4 birdhouse. b.
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This note was uploaded on 03/13/2011 for the course ECON 1B03 taught by Professor Hannahholmes during the Spring '08 term at McMaster University.

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ECON 1BO3 - TEST 1 V1 [QUESTIONS] - Page 1 of 10 McMaster...

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