test 1 - *8.*d,\o.'qI EXAMI ECONOMICS 1110 - F'ALL, VERSION...

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ECONOMICS 1110 *8.*d,\o.'qI EXAMI - F'ALL, 2010 rUoxf;atd, Sara VERSION A rD# NAME (LAST, FIRST) INSTRUCTIONS: Select the best response to each statement and bubble in the corresponding letter on your scanton. Each correct response is worth 3.75 points out of 150. r l. The study of economics is primarily concemed with: b" keeping private businmes from losing mooey. b. demonskating thx capitalistic economies are superior to socialistic economies. O choices rryhich are made in seeking to use scarce resources efficient$. d. determining the most equitable disnibution of society's ou@ut. a 2. Which of the following is associded with macroeconomics? Cotton prices since World'Wa tr Pricing and production in tre textbook indusb/ Incomes of llarrratl Busin€ss School graduates Tnflation and national rrnernployment rates in the 1970s 3. Holly says that nthe imposition of a tu on beer will raise its price." Ben argues that "tares should be imposed on beer because college srudeds drink too much." We can conclude that: @ Ben's statement is normativg brs Holly's is positive. b. Holly's statement is normative, brf B€n's is positive. Both statements are normative. Both statements are positive opporhrnity cost of using lumber to make billboards is: the total value of all of the other possible uses for the lumber. the value of the lumber in its next best alternative use. zero because billboards provide valuable infonnation. impossible to determine and therefore should not be a factor when deciding how to use ltrmber. 5. "If you stand up at a soccer game, you may get a better view of the game. So if everyone stands up at the game, everyone gets a better view." This illustrates the: @ fallacy of composition. b. association-causationissue(posthocfallacy). c. ceteris paribus assumption. d. fallacy of division. a. ]r \ fifr c. d. The a. o \ d.
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example of economic capital is: cash. a business loan from a bank an office worker's computer. a share of E>ocon stock 47. Production possibilities frontiers (cuwes): illustate the optimal way a society can disffibute its wealth. illushate the limits to uihat can be produced from current resources and technology. eliminate the dilemma of resource scarcity by providing a positive approach to dealing with opporarnity cost. are drawn as$ming inefficiency and unemployment. Use the followine teble to answer questions 8 and 9. An \ \ e a. o o\ x. Combinations A B C D E F Consumer Goods 15rt t4' l, t2,," ei( \ o tg Capital Goods 0 1 ) 3'}l 4' 5 The opporhrnity cost of moving from combination D to combination E in the above production possibilities schedule: is 5 consumer goods. is 1 capital good. is 4 consumer goods. implies that resowces are not firlly employed. The above production possibilities schedule reflects:
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This note was uploaded on 12/06/2011 for the course ECON 1110 taught by Professor Heatherklinger during the Fall '08 term at North Texas.

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test 1 - *8.*d,\o.'qI EXAMI ECONOMICS 1110 - F'ALL, VERSION...

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