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practiceexam1B-2

practiceexam1B-2 - ECON 251 Exam#1 Pink Fall 2009(Practice...

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Econ 251 Page 1 of 8 Fall 2009 Exam 1 Pink ECON 251 Exam #1 Pink Fall 2009 (Practice Exam #1B for Fall 2010) 1. What are the four basic economic resources? a. Natural resources, money, stocks, bonds b. Labor, capital, investment, and wages c. Land, labor, investment, and oil d. Entrepreneurship, capital, labor, and natural resources 2. The opportunity cost of an action is 3. Your friend calls you to see if you want to see a movie. Which of the following would NOT be included in the opportunity cost of going to the movie? 4. Suppose Vanessa can make 3 Snickers bars or 4 Twizzlers in one hour, while Anel can make 1 Snickers bars or 3 Twizzlers in one hour. What is Anel’s marginal cost of making a Twizzler? 5. In making Twizzlers, ________ has the comparative advantage and _________ has the absolute advantage. a. Vanessa; Anel b. Anel; Vanessa c. Anel; Anel d. Vanessa; Vanessa 6. What is the slope of Vanessa’s production possibility frontier if the number of Snickers bars is measured on the x axis?
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Econ 251 Page 2 of 8 Fall 2009 Exam 1 Pink 7. If Vanessa and Anel work together to make Twizzlers and Snickers bars, which of the following points will be on their combined economy-wide production possibility frontier? 8. This figure shows an economy-wide production possibility frontier. The PPF gets steeper as production of the good on the X axis increases. This implies that
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