sample exam 1

sample exam 1 - ECON 202 Economics II Midterm Exam 1...

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ECON 202 – Economics II Midterm Exam 1 (sample!!!) Professor: María Pía Olivero NAME: _______________________________________________ NOTE: THIS IS JUST A SAMPLE EXAM. THE ACTUAL EXAM WILL BE LONGER. MULTIPLE CHOICE SECTION 1) To man the war effort, the US government called into service large numbers of reserve forces previously employed in other sectors. An economist, computing the total cost of the war, would be sure to include the following items: a. The value of the civilian goods no longer produced by the new soldiers b. The cost of feeding, clothing and transporting the soldiers c. The dollar cost of counseling for soldiers’ families d. All of the above e. a and b only Use the following diagram to answer the next 4 questions. Think of the PPF as bowed out (or concave). Points A, B and C are all on the frontier. 2) Point E might become attainable if this economy: a. Decreases prices b. Increases wages c. Improves the productivity of its equipment d. Encourages emigration A B C D E
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3) If we measure butter on the horizontal axis and guns on the vertical and if the curve is bowed out. A movement from A to B and then to C indicates that: a. The opportunity cost of additional butter is decreasing b. The opportunity cost of additional guns is increasing c. The economy is becoming more efficient d. The opportunity cost of additional butter is increasing 4) To move from D to A (D and A are on the same vertical line): a. The opportunity cost would be zero b. Some butter would have to be given up c. There would have to be an increase in the quantity of resources d. There would be some guns foregone 5) The opportunity cost of producing one more unit of butter is: a. Higher at B than at C
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This note was uploaded on 05/16/2011 for the course ECON 202 taught by Professor Iforget during the Spring '08 term at Drexel.

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sample exam 1 - ECON 202 Economics II Midterm Exam 1...

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