2010midterm1_Fall08_versionA_comments

2010midterm1_Fall08_versionA_comments - Principles of...

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

View Full Document Right Arrow Icon
Principles of Microeconomics Professor Edward Morey ECON 2010-2300 Midterm 1 October 1, 2008 Version A As a University of Colorado at Boulder student, I a¢ rm that I have neither given nor received assistance on this exam. Name: ___________________________________ Date: ______________ Signature: ______________________________ The range went from approximately 40 to the high 90±s The average was around 75%. The percentages getting A±s and F±s were low. You will get your grade from your T.A. in recitation. Note that the goal is to choose the best answer from those available. 1. A negative relationship between the quantity demanded and price (price on the vertical axis) is called the law of: A) demand. B) increasing returns. C) market clearing. D) supply. 2. Although water is very abundant in most places, it is scarce because: A) it has no alternative uses. B) there is not enough of it to meet all needs. C) it is a free good. D) scarce goods in general are not all that costly. price. For such a commodity everyone could have as much as they wanted at a zero price. Another way of putting it is that using it has no opportunity cost: no matter how much I consume or use, it has no a/ect on how much is available for others. Without scarity there would be no need for economics (no economic prob- lem). 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Can you think of something that is not scare; that is, demand for it exceeds supply at a zero price? 2
Background image of page 2
A) The market B) The process a society uses to determine what will be produced and who will get it. C) Supply and demand D) The family A market and a family are both examples of an economic system, neither systems that are not a market or a family. In terms of necessary and su¢ cient, either is su¢ cient to be an economic system, but not necessary. Supply and demand are simply two components of a market. U.S. students of economic systems then to think a market system and an economic system are one and the same. This is not correct. A market system is a type of economic system but there are many types of economics systems besides markets (governments, charitable organizations, command and control, 4. The opportunity cost of leaving the skating championship before it ends is ___, while the opportunity cost of staying for the entire competition is ___. A) missing the rest of the competition - zero (the ticket is already paid for) B) missing the rest of the competition - getting stuck in the post-championship tra¢ c jam C) zero (you don±t have to pay to leave) - zero (the ticket is already paid for) D) none of the above The opportunity cost of leaving early is simply missing the rest of the event (what you give up because you are not there). Maybe it would have been exciting and memorable, so the cost of leaving early was high. Maybe the rest
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.

This note was uploaded on 07/17/2011 for the course ECON 102 taught by Professor Jarv during the Summer '09 term at Rio Hondo College.

Page1 / 22

2010midterm1_Fall08_versionA_comments - Principles of...

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