old questions chpts 1,2,3,4

old questions chpts 1,2,3,4 - Spring 2002 ECON 120 Sankaran...

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Spring 2002 EXAM # 1 ECON 120 Sankaran <$o:p> Some old questions – does not cover all the material that will be on your exam Monday but I’m posting this up just so you know the structure and type of questions to expect. 1. Efficiency means that a. society is getting the most it can from its scarce resources. b. society is conserving resources in order to save them for the future. c. society's goods and services are distributed fairly among society's members. d. society has lessened its dependence on foreign energy sources. 2. The term which means whatever must be given up to obtain an item is a. efficiency. b. externality. c. opportunity cost. d. market failure. 3. Ryan spends an hour studying instead of going for a bike ride. The opportunity cost to him of studying is a. the improvement in his grades from studying for the hour. b. the difference between the improvement in his grades from studying minus the enjoyment of a bike ride. c. the enjoyment and exercise he would have received had he gone for a bike ride. d. zero. Since Ryan chose to study rather than to ride his bike, the value of studying must have been greater than the value of the bike ride. 4. A rational decisionmaker takes an action only if a. the marginal benefit is greater than the marginal cost. b. the marginal benefit is less than the marginal cost. c. the average benefit is greater than the average cost. d. the marginal benefit is greater than both the average cost and the marginal cost. 5. The invisible hand works to promote general well-being in the economy primarily
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This note was uploaded on 06/14/2011 for the course ECON 222 taught by Professor Shimpalee during the Spring '10 term at South Carolina.

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old questions chpts 1,2,3,4 - Spring 2002 ECON 120 Sankaran...

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