Practice Test 1 Answer Key

Practice Test 1 Answer Key - EconS 102, 4th section, 2010...

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EconS 102, 4 th section, 2010 Fall Practice Test for Exam 1 – Answer Key Multiple Choice Identify the choice that best completes the statement or answers the question. __ E ___ 1. The slope of a line a. can only be calculated for straight lines b. varies at different points along a straight line c. indicates whether or not there is a causal relationship between variables d. is independent of the units of measurement used e. indicates how much the vertical variable changes for a given change in the horizontal variable __ C __ 2. Which of the following is the fundamental resource that is the basis of labor? a. capital b. natural resources c. time d. money e. entrepreneurial ability _ D ___ 3. In one week, Tetah can knit 15 sweaters or bake 480 cookies. The opportunity cost per cookie for Tetah is a. $15 b. 15 sweaters c. 32 sweaters d. 1/32 of a sweater e. 480 sweaters __ C __ 4. Adam Smith's term, "the invisible hand," refers to a. the hidden role of government in setting regulations that govern trading in markets b. the most capable entrepreneurs in the economy c. market forces d. the unseen work of the financial markets that facilitates trade e. the role of technological change and random events in the economy __ E __ 5. Studies show that the demand curve for peas has shifted. Which of the following explanations would you reject first? a. The price of string beans has changed. b. The demand for corn has changed. c. The demand for string beans has changed. d. The income of consumers has changed.
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e. The price of peas has changed. (PEOPLE WILL BUY MORE OR LESS AT THE SAME PRICE) __ C __ 6. The rules of the game include all of the following except one . Which is the exception? a. the laws, customs, conventions and other institutional elements associated with trade b. property rights c. ensuring that the market process generates a fair price to all (FREE MARKET SYSTEM) d. a stable political environment e. a stable legal system _ B ___ 7. U.S. exports are a. not included in U.S. GDP because they are consumed abroad b. included in U.S. GDP because they are produced domestically c. included in U.S. GDP because they represent an increase in inventories d. included in U.S. GDP as government purchases because the government decides what goods may be exported e. not included in U.S. GDP because they are not subject to a tariff Exhibit 1 _ B ___ 8. In Exhibit 1, for any value of x, the a. value of y is larger on curve A than on curve B b. value of y is smaller on curve A than on curve B
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This note was uploaded on 01/10/2012 for the course ECONS 102 taught by Professor Kuzyk during the Fall '08 term at Washington State University .

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Practice Test 1 Answer Key - EconS 102, 4th section, 2010...

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