Midterm 1 key - Form A Economics 101 San Diego State Fall 2007 MWF 10 am Midterm 1 Multiple choice(25 questions 100 points Pick the one answer that

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Form A Economics 101 San Diego State, Fall 2007 MWF 10 am Midterm 1 Multiple choice (25 questions – 100 points). Pick the one answer that you feel best answers the following questions. There is only one correct answer per question. Good luck! David Hasselhoff is the host of a popular television program. During an hour of live TV, the Hoff can spend his time either producing pop songs (S) or judging talented contestants (C). If he devotes all of his time to singing, he can produce 5 S (and 0 C) while if he devotes all of his time to judging contestants he can produce 10 C (and 0 S). 1. Which of the following is true for the Hoff? A) The marginal cost of an additional song is 10 contestants. B) The marginal cost of an additional song is 5 contestants. C) The marginal cost of an additional song is 2 contestants. D) The marginal cost of an additional song is 1/2 contestants. 2. If the Hoff decides to produce 3 songs then he will be able to judge how many contestants? A) 10 B) 6 C) 4 D) 2 Suppose that the Hoff decides is considering joining forces with Sharon to produce a more enjoyable program. Further suppose that during an hour of live TV, Sharon can produce 6 S (and 0 C) if she devotes all of her time to singing, 9 C (and 0 S) if she devotes all of her time to judging contestants. 3. Which of the following is true? A) The Hoff has an absolute advantage in the production of both goods. B) The Hoff has an absolute advantage in the production of songs; Sharon has an absolute advantage in the production of judged contestants. C) The Hoff has an absolute advantage in the production of judged contestants; Sharon has an absolute advantage in the production of songs. D) Sharon has an absolute advantage in the production of both goods. 4. Which of the following is true? A) The Hoff has a comparative advantage in the production of both goods. B)
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This note was uploaded on 04/07/2008 for the course ECON 101 taught by Professor Bansak during the Fall '07 term at San Diego State.

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Midterm 1 key - Form A Economics 101 San Diego State Fall 2007 MWF 10 am Midterm 1 Multiple choice(25 questions 100 points Pick the one answer that

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