Exam1_Practice_Fall2008

# Exam1_Practice_Fall2008 - ECON 251 Exam#1 Fall...

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ECON 251 Exam #1 Fall 2008 (Practice Exam #1A for Summer 2009) 1. Rob is thinking of going to a movie tonight. He hasn’t bought a ticket yet, and tickets cost \$10. He’ll also have to miss 2 hours of work (at \$5 per hour) to go. What’s the opportunity cost of going to the movie, given this information? a. \$10 b. \$5 c. \$20 d. 2 hours 2. Which of the following is NOT a factor of production? a. Land b. Labor c. Entrepreneurship d. Money 3. Scott produces 4 pizzas or 8 sandwiches in an hour. Caroline produces 5 pizzas and 7 sandwiches in an hour. Based on this information, which of the following is true? a. Caroline has comparative advantage in producing sandwiches. b. Caroline has comparative advantage in producing sandwiches and pizza. c. Scott has comparative advantage in producing sandwiches. d. Scott has comparative advantage in producing sandwiches and pizza. 4. Scott produces 4 pizzas or 8 sandwiches in an hour. Caroline produces 5 pizzas and 7 sandwiches in an hour. If the number of sandwiches produced in an hour is measured on the X axis, and the number of pizzas produced in an hour is measured on the Y axis, then a. the slope of Caroline’s PPF is equal to 1.4 (or 7/5). b. the slope of Caroline’s PPF is equal to -1.4 (or –7/5). c. the slope of Caroline’s PPF is equal to 0.7 (or 5/7). d. the slope of Caroline’s PPF is equal to -0.7 (or –5/7). 5. Anna can produce either rice or footballs. One pound of rice costs 2 footballs. If one feasible and efficient production point for Anna is 10 footballs and 5 pounds of rice in one day, what is the largest quantity of rice Anna could produce in one day? a. 2.5 pounds b. 5 pounds c. 10 pounds d. 15 pounds 6. If a country discovers new resources, this will, other things equal, result in the country’s a. production possibilities frontier shifting in toward the origin. Kelly Blanchard Page 1 of 10 Econ 251 Fall 2008 Exam 1 Pink

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b. opportunity costs increasing. c. production possibilities frontier shifting out from the origin. d. prospects for economic growth falling. A B C D E Mars bars 0 50 100 150 200 1000 750 500 250 0 7. What is the marginal cost of Mars bar production between C and D? a. 50 Mars bars b. -250 Mars bars c. d. 8. A point on a production possibility frontier is a. inefficient b. ineffective c. (productively) efficient d. unattainable 9. What factor does NOT shift the production possibility frontier? a. Technological change. b. Change in productivity of labor. c. Change in society’s preferences. d.
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Exam1_Practice_Fall2008 - ECON 251 Exam#1 Fall...

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