midterm1sol

midterm1sol - First Midterm Examination Economics 1101...

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First Midterm Examination Economics 1101 Name: TUiD: You have 1 hour 20 minutes to finish the exam. The exam consists of fifty (50) multiple-choice questions, each worth one (1) point for a total of 50 points. If you have any doubts about any question feel free to ask the examiner. This is a closed book, closed notes exam. Use of calculators and cell-phones is prohibited during the exam. Any person found cheating will earn an F grade for the course. 1. As a student of economics, when you speak of scarcity, you are referring to (a) the ability of society to employ all of its resources. (b) the ability of society to consume all that it produces. (c) the inability of society to satisfy all human wants because of limited resources. (d) the ability of society to continually make technological breakthroughs and increase production. 2. Which of the following is a macroeconomic decision or concept? (a) the price of oil (b) how many television sets to produce (c) the unemployment rate for the entire economy (d) the unemployment rate for each firm 3. Factors of production include all of the following EXCEPT (a) labor. (b) land. (c) capital. (d) None of the above answers is correct because all are factors of production. 4. Opportunity cost is defined as the (a) total value of all the alternatives given up. (b) highest-valued alternative given up. (c) cost of not doing all of the things you would like to do. (d) lowest-valued alternative given up. 1
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5. You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is (a) the value of working and skiing. (b) the value of working or skiing, depending on which you would have done rather than go to Hawaii. (c) working, because you would be giving up a week’s pay. (d) None of the above if you enjoy the time spent in Hawaii. 6. A benefit from an increase in activity is called (a) a marginal benefit. (b) an economic benefit. (c) a total benefit. (d) an opportunity gain. 7. Marginal cost is the (a) cost of a small increase in an activity. (b) total cost of an activity. (c) cost of an activity minus the benefits. (d) cost of a forgone alternative. 8. Positive economic statements (a) prescribe what should be. (b) are related only to microeconomics. (c) can be tested against the facts. (d) cannot be tested against the facts. 9. When resources are assigned to inappropriate tasks, that is, tasks for which they are not the best match, the result will be producing at a point (a) where the slope of the PPF is positive. (b) where the slope of the PPF is zero.
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This note was uploaded on 05/04/2011 for the course ECON 1101 taught by Professor Rappoport during the Fall '08 term at Temple.

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midterm1sol - First Midterm Examination Economics 1101...

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