ECO_110_-_Bonus_Exam__Fall_2010__Questio

ECO_110_-_Bonus_Exam__Fall_2010__Questio - ECO 110 - Bonus...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ECO 110 - Bonus Exam (Fall 2010) Student: _______________________________________________________________________________________ 1. The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of: A. a normative statement. B. a microeconomic statement. C. marginal analysis. D. a generalization. Use the table below to complete the following questions. The production possibilities curve below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. 2. Refer to the table above. What is the opportunity cost of producing the third unit of capital goods? A. 4 units of consumer goods B. 5 units of consumer goods C. 6 units of consumer goods D. 7 units of consumer goods 3. Suppose there are two economies, Alpha and Beta, which have the same production possibilities curves and are on the same point on each curve. If Beta then devotes more resources to investment goods than consumer goods when compared to Alpha, then in the future: A. Alpha will experience greater economic growth than Beta. B. Beta will experience greater economic growth than Alpha. C. Alpha will not be able to achieve full employment or productive efficiency. D. Beta will not be able to achieve full employment or productive efficiency
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Use the graph below to answer the following question(s). 4. Refer to the above graph. The selection of which point on the production possibilities curve is most like to result in the largest increase in economic growth over time? A. A B. B C. C D. D 5. Which question is an illustration of a macroeconomic question? A. Is a business unresponsive to the demands of consumers? B. Is a consumer boycott an effective means of reducing product prices? C. Is the level of employment in the economy sensitive to the quantity of consumer spending? D. Are oil companies engaging in a rip-off of the consumer by charging exorbitantly high prices for gasoline? Use the graph below to answer the following question(s).
Background image of page 2
6. Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. Other things being equal, society's current choice of point P on curve (a) will: A. allow it to achieve more rapid economic growth than would the choice of point N. B. entail a slower rate of economic growth than would the choice of point N. C. entail the same rate of growth as would the choice of point N. D. be unobtainable because it exceeds the productive capacity of the economy. 7. The production possibilities curve bows outward from the origin because: A. opportunity costs decrease as the production of a good increases. B. opportunity costs increase as the production of a good increases. C.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 15

ECO_110_-_Bonus_Exam__Fall_2010__Questio - ECO 110 - Bonus...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online