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ECMA04H
First Term Test  October 25, 2008
Time: 90 minutes
Professor Gordon Cleveland
Version A
Instructions:
PLEASE READ CAREFULLY
1. On the Scantron answer sheet, you must
→
PRINT your last name and first name
→
enter your student number as the identification number
→
FILL IN THE BUBBLES under your name and student number
→
FILL IN THE BUBBLE ASSOCIATED WITH YOUR TEST VERSION
NOTE  THIS IS VERSION A
2. If you fail to carry out all the tasks indicated in part 1, 4 marks will be deducted
from your final score.
3. This exam consists of 25 multiple choice questions (and a 26
th
which will
confirm your exam version).
For each question, choose the correct answer.
If two
multiple choice answers both seem to be approximately correct, choose the best of
the two answers.
Enter the answers to the multiple choice questions on the
Scantron sheet provided to you by filling in the appropriate bubble.
If
answers are not written on this sheet, there will be no marks given for
answers.
Each correct answer is worth 4 marks (except for question 26, where the
correct answer simply confirms your exam version); incorrect answers receive 0
marks.
4. When entering your answers on the Scantron sheet:
→
Use a medium (HB) pencil (do not use a red pen)
→
Fill in the bubble neatly and completely (this is important)
→
Erase any changes as completely as possible
→
Be very careful to place each answer in the correct place
Note: this exam consists of 9 pages, including this cover page.
Make sure that all 9
pages are included in your exam, and notify an invigilator immediately if any are
missing.
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ECMA04 FIRST TERM TEST
October 25, 2008
This term test consists of 25 questions.
Answer each question by choosing the best alternative and
indicating your choice by filling in the appropriate bubble on the Scantron sheet  it is the only thing you
will turn in at the end of the exam.
You may take the rest of the exam away with you, so you can use the
fronts and back of these pages for your rough work. If you wish to keep a record of your answers, make a
note of them on the exam question sheet.
The answer sheet (Scantron) will not be returned to you, but the
answers will be posted on the Intranet, and of course your mark will be posted on the Intranet.
Each
correct answer is worth 4 marks (there is no deduction for wrong answers).
1
−
3.
A country produces goods X and Y and has the following equation for its production possibilities
frontier:
Y
2
+ 4X
2
= 1600
or
Y = [1600  4X
2
]
0.5
Questions 1 through 3 concern this country.
1. You are told that the economy is producing efficiently and has chosen to produce and consume 12 units
of X and 32 units of Y.
At this point on the production possibilities frontier, you can use calculus to
obtain the
opportunity cost of Y
as:
A) 2
B) 1/2
C) 3/2
D) 2/3
E) 3
F) 1/3
G) 1/4
H) 8/3
I) 3/8
J) none of the above
2. Now you are told that the economy is producing efficiently and has chosen to produce and consume 16
units of X.
At this point on the production possibilities frontier, you can use calculus to obtain the
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 Fall '09
 Cleverland
 Supply And Demand, average variable cost, Q* falls

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