Macro Spr10 PRACTICE Mid_1

Macro Spr10 PRACTICE Mid_1 - Economics Spring 2010 Temple...

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Unformatted text preview: Economics Spring 2010 Temple University Dr. Wargo PRACTCE EXAM Mid- term #1 Parkin Chapter 1, 2 & 3 Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Refer to the production possibilities frontier in the Fgure above. Which production point indicates that resources are NOT fully utilized or are misallocated? A) Point a B) Point b C) Point c D) Point e 1) 2) The production possibilities frontier illustrates A) all goods and services that are desired but cannot be produced due to scarce resources. B) the combination of goods and services that can be produced efFciently C) all goods that can be produced by an economy D) all possible production of capital goods 2) Production Possibilities Possibility Pizza (per hour) Soda (cases per hour) A 100 B 1 95 C 2 80 D 3 60 E 4 35 5 3) In the above table, the opportunity cost of the 2nd pizza is A) 15 cases of soda. B) 80 cases of soda. C) 0 cases of soda. D) 95 cases of soda. 3) # Economics Spring 2010 PRACTICE EXAM Mid- term #1 Parkin Ch 1,2 & 3 Economics Spring 2010 PRACTICE EXAM Mid- term #1 Parkin Ch 1,2 & 3 4) Dave can produce 10 pairs of shoes or 5 shirts each day. Judy can produce 9 pairs of shoes or 3 shirts each day. We can say that A) Judy is not operating on her PPF . B) Judy has an absolute advantage in the production of only shirts. C) Dave has an absolute advantage in the production of shoes and shirts. D) Dave has a comparative advantage in the production of shoes. 4) 5) The above Fgures show the market for oranges. Which Fgure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning? A) igure A B) igure B C) igure C D) igure D 5) 6) The above Fgures show the market for oranges. Which Fgure(s) shows the effect of an increase in the price of bananas, a substitute for oranges? A) igure A B) igure C C) igure A and C D) igure D 6) 2 Economics Spring 2010 PRACTICE EXAM Mid- term #1 Parkin Ch 1,2 & Economics Spring 2010 PRACTICE EXAM Mid- term #1 Parkin Ch 1,2 & 3 4) Dave can produce 10 pairs of shoes or 5 shirts each day. Judy can produce 9 pairs of shoes or 3 shirts each day. We can say that A) Judy is not operating on her PPF . B) Judy has an absolute advantage in the production of only shirts. C) Dave has an absolute advantage in the production of shoes and shirts. D) Dave has a comparative advantage in the production of shoes. 4) 5) The above Fgures show the market for oranges. Which Fgure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning? A) igure A B) igure B C) igure C D) igure D 5) 6) The above Fgures show the market for oranges. Which Fgure(s) shows the effect of an increase in the price of bananas, a substitute for oranges?...
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This note was uploaded on 03/24/2011 for the course ECON 2902 taught by Professor Wargo during the Spring '10 term at Temple.

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Macro Spr10 PRACTICE Mid_1 - Economics Spring 2010 Temple...

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