PracticefinalexamA - 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

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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. a. Tessa, Kara b. Tessa, Tessa c. Kara, Tessa d. Kara, Kara 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? a. 10 bagels and 6 doughnuts b. 8 bagels and 7 doughnuts c. 8 bagels and 5 doughnuts d. 18 bagels and 0 doughnuts 6. Which of the following would decrease the demand for poinsettias if poinsettias are normal goods? a. An increase in the price of poinsettias b. An increase in the supply of poinsettias c. An increase in household incomes d. An increase in the price of flower pots (complements in consumption of poinsettias) 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, a. The equilibrium price of cars increases b. The equilibrium price of cars decreases c. The equilibrium quantity of cars decreases d. Both a and c
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Econ 251 Page 3 of 14 Fall 2010 Final Exam Pink 9. Ground beef and leather boots are complements in production. Ground beef and hamburger buns are complements in consumption. Suppose the price of leather boots increases and the price of hamburger buns decreases. What will be the effect on the equilibrium price and equilibrium quantity of ground beef? a.
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This note was uploaded on 07/15/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

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PracticefinalexamA - 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

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