Answers.TEST1.A04aaaa.2008

Answers.TEST1.A04aaaa.2008 - 1 ECMA04H First Term Test...

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1 ECMA04H First Term Test - October 25, 2008 Time: 90 minutes Professor Gordon Cleveland Version A 1. At 12 units of X, the opportunity cost of Y is 2/3rds. The correct answer is (D). 2. At 16 units of X, the opportunity cost of X is 8/3rds. The correct answer is (H). 3. The utility function is maximized at 11.55 units of X. The correct answer is (E). 4. Sherry Cooper is warning about a recession, which will cause the economy to perform at less than its capacity because of a reduced demand for goods and services. She is warning about a move from a point like B or C to a point like A. The correct answer is (D). 5. New technologies may make the existing capital and labour resources of the economy more productive. This economic growth would push the production possibilities frontier outwards to allow the economy to reach a point like D. The correct answer is (C). 6. P* and Q* will both fall. The correct answer is (B). 7. Q* rises but we are uncertain about P*. The correct answer is (G).
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Answers.TEST1.A04aaaa.2008 - 1 ECMA04H First Term Test...

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