midterm1_sample

# midterm1_sample - 1 In one year a weapons plant can...

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1. In one year, a weapons plant can manufacture either 1,000 more guns or 50 more tanks. The plant's opportunity cost of an extra tank is approximately a. 20 guns b. 50 guns c. 50 tanks d. 1/50 of a tank e. 1/50 of a gun 2. In one year, a weapons plant can manufacture either 1,000 more guns or 50 more tanks. The plant's opportunity cost of an extra gun is approximately a. 50 tanks b. 20 guns c. 20 tanks d. 1/20 of a tank e. 1/50 of a tank 3. A shift in the production possibilities frontier from DC to EC in Figure 2-7 could be due to a a. technological improvement in the production of ice cream b. reduction in the rate of unemployment c. rise in the rate of unemployment d. technological improvement in the production of frozen yogurt e. fall in the demand for frozen yogurt 4. Which of the following would not cause the demand curve for college football tickets to shift? a. an increase in the price of professional football tickets b. a decrease in the price of college basketball tickets c. an increase in the price of college football tickets d. a drop in student incomes e. an increase in student preferences for college football tickets Figure 4-3 Price Quantity Quantity Per Pair Demanded Supplied \$ 2 18 3 \$ 4 14 4 \$ 6 10 5 \$ 8 6 6 \$10 2 8 5. Figure 4-3 shows the supply and demand for socks. If a price floor of \$10 is imposed, the quantity of socks actually purchased will be a. 6 pairs b. 10 pairs c. 2 pairs d. 8 pairs e. 1 pair

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6. Assuming that natural gas and oil are substitutes, what will be the effect of higher supply of oil on the market of natural gas? a. Demand for natural gas shits to the right b. Supply of natural gas shits to the right c. Demand for natural gas shits to the left d. Supply of natural gas shits to the left e. No changes on the market of natural gas 7. If two goods are often consumed together, they are a. substitute goods
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## This note was uploaded on 09/14/2011 for the course ECON 103 taught by Professor Gispy during the Spring '11 term at Prairie State College .

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midterm1_sample - 1 In one year a weapons plant can...

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