test1r - ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring...

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ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring 2011 Version A Page 1 1. Write down your name and last 4 digits of Panther ID number on this page. (No name, no grade) 2. After completing your exam, you must hand in this entire exam booklet. 3. You can use only simple calculators. No wireless devices allowed. A NAME: ___________________________________ Last 4 digits of Panther ID :____________________ Please turn off your wireless devices.
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ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring 2011 Version A Page 2
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ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring 2011 Version A Page 3 Name: __________________________ Date: _____________ PART 1 – Multiple Choice Questions (60 points) Choose the one alternative that best completes the statement or answers the question. 1. Suppose the input costs associated with manufacturing hair-replacement medication decreases over time. This would lead to: A) an increase in demand and higher prices. B) a decrease in the supply of such treatments, higher prices, and a decrease in the equilibrium quantity. C) a decrease in quantity supplied and lower prices. D) an increase in the supply of such treatments, lower prices, and an increase in the equilibrium quantity. 2. During the Great Depression, consumers and producers in the United States dramatically reduced their spending as compared to the quantity of goods and services available at the time. This statement best represents the economic concept of: A) when markets don't achieve efficiency, government intervention can improve society's welfare. B) overall spending sometimes gets out of line with the economy's productive capacity. C) government policies can change spending. D) resources are scarce. 3. The simplest circular-flow model shows the interaction between households and firms. In this model: A) firms supply goods and services to households, which, in turn, supply factors of production to firms. B) attention is focused on “real” flows of goods, services, and factors of production, but money flows between households and firms are ignored for simplicity. C) households and firms interact in the market for goods and services, but firms are the only participants in the factor markets. D) only barter transactions take place. 4. If the production possibility frontier were a straight line sloping down from left to right, this would suggest that: A) the two products must have the same price. B) there are no opportunity costs. C) more of both goods could be produced moving along the frontier. D) the opportunity costs of the products are constant.
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ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring 2011 Version A Page 4 Use the following to answer question 5: Figure: Production Possibility Frontier 5. (Figure: Production Possibility Frontier) A movement from producing 12 units of cars
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This note was uploaded on 10/15/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Spring '10 term at Georgia State University, Atlanta.

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test1r - ECON 2105 Prof. Calvet Exam 1 3:00pm MW Spring...

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