FinalF2010aAnswersWeb - Econ 001: Final Exam (Dr. Stein)...

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Econ 001: Final Exam (Dr. Stein) Answer Key December 21, 2010 Instructions: This is a 120-minute examination. Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and label all diagrams carefully. Write your name and your Recitation Instructor's name in every blue book that you use. This exam is given under the rules of Penn's Honor system. All blue books, blank or filled, must be handed in at the end of this exam. No blue books may be taken from the room. Calculators are not allowed on this exam. Check: The Exam has 4 parts. You will need 4 blue books. Part I consists of 20 multiple-choice questions. Please write you answers in bluebook 1. Part II consists of 1 short answer question. Please use bluebook 2 for Q1. Part III consists of 1 short answer question. Please use bluebook 2 for Q2. Part IV consists of 1 short answer questions. Please use bluebook 3 for Q3. Failure to follow these directions will mean that your exam will not be graded until after the winter break. Part I: Multiple Choice Questions (2 points each/40 points total). Please write your answers in blue book 1. 1. Students can attend GREAT meetings on Sundays or Mondays. There is no additional charge for these sessions. Which of these statements is true? a. Attendance is free in terms of economic costs. b. Students should be indifferent between the two days as they pay zero dollars on both. c. Both above statements are true. d. None of the above is true.
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2. The following table compares total wheat and computer production in India and Israel (in millions of units). India Israel Wheat (total per day) 900 500 Computers (total per day) 9 1 Note: Suppose India has 1000 times more workers than Israel. Which of these statements is true? I. Israel has a comparative advantage in wheat production. II. If India & Israel trade, Israel would produce only Wheat & India only Computers. a. Both are True. b. Only I is True c. Only II is True d. Both are False 3. In a certain economy, peanuts and books are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more peanuts and more books, relative to the quantities of those goods that are being produced now? a. Unemployed labor is put to work producing peanuts and books. b. The economy puts its idle capital to work producing peanuts and books. c. The economy experiences technology improvement. d. All of the above are correct. 4. Suppose a country is producing on its Production Possibilities Frontier but at a point where MB>MC. This implies that the country is: I. Efficient in terms of production. II.
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FinalF2010aAnswersWeb - Econ 001: Final Exam (Dr. Stein)...

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