__172.20.40.61_Materials_hjackson-0013_exam1Awtr09

__172.20.40.61_Materials_hjackson-0013_exam1Awtr09 -...

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Test Number 1 - Version A Name: ___________________________________ Date: ______________ PART A: (3 points each) Please select the best answer on the scantron card you provide. 1. A binding price ceiling is designed to: A) keep prices low. B) increase the quality of the good. C) prevent shortages. D) none of the above. 2. An expansion is a period in which: A) output declines. B) the price level falls. C) output rises. D) the price level rises. 3. If the state government allocates additional spending on education, the opportunity cost is: A) zero. B) the dollar amount of the additional spending. C) only considered if additional taxes need to be raised to fund the spending. D) measured in terms of the alternative uses for that money. Use the following to answer question 4. Table: Production Possibilities Schedule 1 Alternatives A B C D E F Consumer goods per period 0 1 2 3 4 5 Capital goods per period 30 28 24 18 10 0 4. (Table: Production Possibilities Schedule 1) If the economy produces 2 units of consumer goods per period, it also can produce at most _______ units of capital goods per period. A) 30
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__172.20.40.61_Materials_hjackson-0013_exam1Awtr09 -...

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