Econ 200 Midterm 1

Econ 200 Midterm 1 - Econ200 Yoonhae Oh, AU2011 Midterm#1...

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Econ200 Yoonhae Oh, AU2011 Midterm#1 Exam White special code : 01 Name : __________________ Answer : d d d c b / c a c a d / a a b b b / b b b d d /a b d c d / a a 1
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Figure1 Panel (a) Panel (b) Q R S T U televisions 1 2 3 4 5 6 radios 1 2 3 4 5 6 7 8 9 10 11 12 13 1. Refer to Figure1, Panel (a). The opportunity cost of one TV is highest when the economy produces 2 televisions 1 2 3 4 5 6 7 8 9 10 radios 1 2 3 4 5 6 7 8 9 10 11 12 13
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a. 2TV. b. 4 TVs. c. 8 TVs. d. 11 TVs. . 2. Refer to Figure1, Panel (a). Production at point S is a. impossible and inefficient. b. impossible but efficient. c. possible but inefficient. d. possible and efficient. 3. Refer to Figure 1, Panel (a) and Panel (b). A shift of the economy’s production possibilities frontier from Panel (a) to Panel (b) could be caused by a. unemployment. b. an improvement in television production technology. c. an improvement in radio production technology. d. an improvement in both television and radio production technology. 4. at the current price, there is a shortage of a good, then a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied. 5. When quantity supplied increases at every possible price, we know that the supply curve has a. shifted to the left. b. shifted to the right. c. not shifted; rather, we have moved along the supply curve to a new point on the same curve. d. not shifted; rather, the supply curve has become flatter. 3
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6. Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity? a. One individual’s production possibilities frontier is steeper than the other individual’s production possibilities frontier. b. One individual is faster at both activities than the other individual. c. One individual’s opportunity costs are the same as the other individual’s opportunity costs. d. None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities. 4
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7. Suppose that a worker in Radioland can produce either 5 radios or 1 television per year, and a worker in Teeveeland can produce either 2 radios or 6 televisions per year. Each nation has 100 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Radioland trades 200 radios to Teeveeland in exchange for 200 televisions each year, then each country's maximum consumption of new radios and televisions per year will be 5
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a. 300 radios, 200 televisions in Radioland and 200 radios, 400 televisions in
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Econ 200 Midterm 1 - Econ200 Yoonhae Oh, AU2011 Midterm#1...

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