sample Midterm 2

sample Midterm 2 - Ex a m N a m e...

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Unformatted text preview: Ex a m N a m e ___________________________________ MULTIPLE C H OICE . Choo s e t h e on e a l t e rn at iv e t h at b e s t c ompl e t e s t h e s tat e m e n t or a n s w e r s t h e qu e s t ion . 1 ) 1 ) On e of t h e m a j or r e s ul t s of t h e gr e at e r s p e c i a liz at ion of l a bour i s t h at A) t h e r e i s a gr e at e r n ee d for t r a d e . B) t h e c ir c ul a r flow of in c om e c on t r act s . C) t h e ov e r a ll ou t pu t of t h e e c onomy d e c lin e s . D) e ac h work e r mu s t b e c om e mor e s e lf- s uffi c i e n t. E) t h e r e i s a n in c r e a s e d n ee d for gov e rnm e n t t o in t e rv e n e in t h e m a rk e t pl ac e . An s w e r : A T h e ta b l e b e l o w illu s t r at es that, in o n e da y , Tri s ta n c a n p r o d u c e e i th e r 12 f i s h in g lur es o r m o w 3 l a wn s , w h il e T h o ma s c a n p r o d u c e e i th e r 6 f i s h in g lur es o r m o w 6 l a wn s . Fi s hing lur es Mow e d l a wn s Tri s ta n 12 3 Thom a s 6 6 T ABLE 1- 1 2 ) 2 ) R e f e r t o T a bl e 1- 1. If Tri s ta n a nd Thom a s w a n t t o m a ximiz e t h e ir j oin t ou t pu t from on e d a y of work , how s hould t h e y s p e c i a liz e t h e ir produ ct ion ? A) Tri s ta n produ c e s 6 lur e s a nd 3 mow e d l a wn s B) Tri s ta n produ c e s 3 mow e d l a wn s ; Thom a s produ c e s 6 mow e d l a wn s C) Tri s ta n produ c e s no t hing , Thom a s produ c e s 6 lur e s a nd 6 mow e d l a wn s D) Tri s ta n produ c e s 6 lur e s ; Thom a s produ c e s 6 lur e s E) Tri s ta n produ c e s 12 lur e s ; Thom a s produ c e s 6 mow e d l a wn s An s w e r : E 3 ) 3 ) In pr act i c e , t h e t e rm " c e n t r a lly pl a nn e d e c onomy" r e f e r s t o a n e c onomy in whi c h A) t h e mili ta ry i s in c on t rol of t h e gov e rnm e n t. B) t h e gov e rnm e n t m a k e s a ll produ ct ion a nd c on s ump t ion d e c i s ion s . C) e c onomi c d e c i s ion s a r e m a d e in t h e g e ogr a phi c c e n t e r of t h e c oun t ry . D) t h e mix of m a rk e t a nd c omm a nd prin c ipl e s i s h e a vily w e igh t e d t ow a rd s t h e l att e r . E) a ll c ommodi t i e s a r e r at ion e d . An s w e r : D 4 ) 4 ) If t h e r e i s a lw a y s a t hr ee- for- on e t r a d e- off b e t w ee n t h e produ ct ion of good s X a nd Y , t h e n t h e produ ct ion po ss ibili t i e s bound a ry for X a nd Y i s A) a downw a rd- s loping s t r a igh t lin e t h at i s brok e n at on e poin t. B) s e mi- c ir c ul a r . C) a downw a rd- s loping c urv e c on ca v e t o t h e origin . D) a downw a rd- s loping c urv e c onv e x t o t h e origin . E) a downw a rd- s loping s t r a igh t lin e ....
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sample Midterm 2 - Ex a m N a m e...

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