FinalExam_PracticeC

FinalExam_PracticeC - ECON 251 Practice Final Exam C(based...

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ECON 251 Practice Final Exam C (based on Spring 2008 final) Maymester 2009 The country of Ecoland can produce only pizzas and pizza ovens. The following table lists some combinations of quantities of both goods that can be produced in a month given available resources. Possibility Pizzas Pizza ovens A 0 and 15 B 20 and 14 C 40 and 12 D 60 and 9 E 80 and 5 F 100 and 0 1. The combination of 30 pizzas and 11 pizza ovens is ____, the combination of 60 pizzas and 9 pizza ovens is ____, and the combination of 90 pizzas and 6 pizza ovens is ____. a. unattainable; attainable; efficient b. inefficient; efficient; unattainable c. attainable; inefficient; efficient d. efficient; inefficient; attainable 2. The graph above represents Production Possibilities Frontiers (PPFs) for Mary and Joseph. According to the graph, which of the following statements is true? Econ 251 Page 1 of 14 Spring 2009 Practice Final Exam B Pizzas 15 45 30 30 Joseph’s PPF . Mary’s PPF . Pasta Salads

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a. Joseph has an absolute advantage in making both pizzas and pasta salads b. Mary has a comparative advantage in making both pizzas and pasta salads c. Mary has an absolute advantage in making pizza and Joseph has an absolute advantage in making pasta salads d. Mary has both comparative and absolute advantage in making pizzas. 3. According to the same graph above, what is Joseph’s marginal cost of producing a pizza? a. ½ a pasta salad b. 15 pasta salads c. 2 pasta salads d. 30 pasta salads 4. Which of the following would most likely be included in the opportunity cost of a college education? a. salary you earn after graduation b. living expenses c. tuition payments d. All of the above would be included as part of the opportunity cost of a college education. 5. The four main productive resources of economics are a. land, labor, capital, and entrepreneurship b. profit, rent, interest, and wages c. owners, managers, bankers, and government d. capitalists, laborers, landowners, and government 6. Suppose that Coors and Budweiser are substitutes in consumption. If the price of Budweiser increases how will the market for Coors be affected? a. The demand for Coors will decrease. b. The demand for Coors will increase. c. The supply of Coors will increase. d. The supply of Coors will decrease. 7. Coffee and creamer are complements in consumption and both are normal goods. If consumer income increases and the price of creamer falls, what happens in the coffee market? a. The equilibrium price decreases, and the equilibrium quantity decreases. b. The equilibrium price increases, and the equilibrium quantity decreases. c. The equilibrium price decreases, and the equilibrium quantity cannot be determined. d.
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FinalExam_PracticeC - ECON 251 Practice Final Exam C(based...

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