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practicefinalexamA

practicefinalexamA - ECON 251 Final Exam Pink Fall...

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Econ 251 Page 1 of 14 Fall 2010 Final Exam Pink ECON 251 Final Exam Pink Fall 2010 (Practice Final Exam A for Spring 2011) 1. Maggie is trying to figure out how to spend 3 hours of her time during the holidays. She can go ice skating, watch old movies at home, or take a nap. If she goes ice skating, she’ll have to pay a $5 entrance fee and a $3 skate rental fee, but 3 hours of ice skating is worth $10 to her. Watching the movies is worth $10 to her as well (but requires no additional purchase), and taking a nap is worth $5 to her. Based on this information, what is Maggie’s opportunity cost of going ice skating? a. $8 b. $15 c. $18 d. $2 2. Jill’s production possibility from 6 hours of cooking pies and sandwiches is represented in the above graph. What is Jill’s opportunity cost of making one pie? a. 5 pies b. 5 sandwiches c. 1/5 of a sandwich d. 2 pies The table below shows how many bagels and doughnuts Tessa and Kara can make in an hour. Bagels Doughnuts Tessa 10 5 Kara 8 6 3. What is the marginal cost of producing a bagel for Kara? a. ½ of a doughnut b. ¾ of a doughnut c. 8/10 of a doughnut d. 4/3 of a doughnut Sandwiches Pies 18 90
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Econ 251 Page 2 of 14 Fall 2010 Final Exam Pink 4. Based on the table above, _____________ has the comparative advantage in bagels, and ________ has the absolute advantage in doughnuts. 5. If Tessa and Kara work together to produce bagels and doughnuts, which of the following combinations of bagels and doughnuts is NOT on their joint PPF? 6. Which of the following would decrease the demand for poinsettias if poinsettias are normal goods? 7. Which of the following shifts the supply of cars to the right? a. A decrease in the price of iron if iron is an input in the production of cars. b. A decrease in the price of cars c. An increase in consumer income if cars are normal good d. A decrease in the price of gasoline if cars and gasoline are complements in consumption 8. When the supply of cars shifts to the right,
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