review_questions_midterm1_winter08

review_questions_midterm1_winter08 - Midterm exam 1 Econ 1...

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Midterm exam 1 Econ 1 – fall 2006 – Santa Clara University Name: _____________________________________________ Section (circle one): MWF 10:30 a.m. MWF 1:00 p.m. MWF 2:15 p.m. Date: _____________________________________________ Multiple choice (1 point each for a total of 40 points) Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Guns and butter are used to represent the classic societal tradeoff between spending on a. durable and nondurable goods. b. imports and exports. c. national defense and consumer goods. d. law enforcement and agriculture. ____ 2. To say that "people respond to incentives" is to say that a. changes in costs (but not changes in benefits) influence people's decisions and their beha- vior. b. changes in benefits (but not changes in costs) influence people's decisions and their beha- vior. c. changes in benefits or changes in costs influence people's decisions and their behavior. d. tradeoffs can be eliminated by rational people who think at the margin. ____ 3. Which of the following statements about markets is most accurate? a. Markets are usually a good way to organize economic activity. b. Markets are usually inferior to central planning as a way to organize economic activity. c. Markets fail and are therefore not an acceptable way to organize economic activity. d. Markets are a good way to organize economic activity in developed nations, but not in less developed nations. ____ 4. The basic principles of economics suggest that a. markets are seldom, if ever, a good way to organize economic activity. b. government should become involved in markets when trade between countries is involved. c. government should become involved in markets when those markets fail to produce effi- cient or equitable outcomes. d. All of the above are correct. ____ 5. Production is efficient if the economy is producing at a point a. on the production possibilities frontier. b. outside the production possibilities frontier. c. on or inside the production possibilities frontier. d. inside the production possibilities frontier. ____ 6. The field of economics is traditionally divided into two broad subfields, a. national economics and international economics. b. consumer economics and producer economics. c. private sector economics and public sector economics.
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d. microeconomics and macroeconomics. ____ 7. A competitive market is a market in which a. an auctioneer helps set prices and arrange sales. b. there are only a few sellers. c. the forces of supply and demand do not apply. d. no individual buyer or seller has any significant impact on the market price. ____ 8. The downward slope of the typical demand curve reflects which of the following concepts? a.
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This note was uploaded on 02/13/2012 for the course ECON 1 taught by Professor Ifcher,john during the Fall '07 term at Santa Clara.

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review_questions_midterm1_winter08 - Midterm exam 1 Econ 1...

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