Exam 1 Ch1-2 Sample Sring 2008

Principles of Microeconomics + DiscoverEcon code card

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Exam 1 Ch -2 Sample Spring 2008 1. For economists, the word "utility" means: A) versatility and flexibility. B) rationality. C) pleasure and satisfaction. D) purposefulness. 2. When entering a building, Sam diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of: A) irrational behavior. B) a lazy person. C) marginal benefit-marginal cost analysis. D) programmed learning. 3. The assertion that "There is no free lunch" means that: A) there are always tradeoffs between economic goals. B) all production involves the use of scarce resources and thus the sacrifice of alternative goods. C) marginal analysis is not used in economic reasoning. D) choices need not be made if behavior is rational. 4. In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of: A) scarcity and opportunity costs. B) money and real capital. C) complementary economic goals. D) full production. 5. The economizing problem is: A) the need to make choices because economic wants exceed economic means. B) how to distribute resources equally amongst all members of society. C) that people’s means often exceed their wants. D) that people do not know how to rationally allocate resources. 6. The alternative combinations of two goods which a consumer can purchase with a given money income is shown by: A) a production possibilities curve. B) a demand curve. C) consumer expenditure line. D) a budget line. Use the following to answer questions 7-9: 7. Refer to the budget line shown in the diagram above. If the consumer's money income is $20, the:
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Exam 1 Ch -2 Sample Spring 2008 A) prices of C and D cannot be determined. B) price of C is $2 and the price of D is $4. C) consumer can obtain a combination of 5 units of both C and D . D) price of C is $4 and the price of D is $2. 8. Refer to the budget line shown in the diagram above. If the consumer's money income is $20, which of the following combinations of goods is unattainable ? A) 4 units of C, and 6 units of D. B) 5 units of C, and no units of D. C) 1 unit of C, and 8 units of D. D) 2 units of C, and 6 units of D . 9. Refer to the budget line shown in the diagram above. The absolute value of the slope of the budget line is: A) MU C /MU D . B)
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This note was uploaded on 02/01/2008 for the course ECON 2213 taught by Professor Murphy during the Spring '08 term at NSUOK.

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Exam 1 Ch1-2 Sample Sring 2008 - Exam 1 Ch -2 Sample Spring...

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