EX1AS09 for Old Exam File

EX1AS09 for Old Exam File - 1 ECONOMICS 202 - EXAM 1A -...

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1 ECONOMICS 202 -- EXAM 1A -- SPRING 2009 1. Which of the following is not considered to be an economic resource: a. the knowledge of all of the faculty of the University of Texas b. the knowledge of the student body of the University of Texas c. the stocks, bonds and checking account balances owned by parents of the TAMU student body d. the land upon which this building was constructed e. none of the above, i.e., all of the above are considered economic resources 2. Micro economics is the study of decision making undertaken by individuals (or households) and by firms. Maro economics is the study of the behavior of the economy as a whole, including such phenomena as changes in unemployment, the general price level and national income. 3. The “Economic Problem” is a set of three questions: a. When? How? What? b. Who? When? How? c. What? Where? For Whom? d. How? For Whom? What? e. None of the above is the correct set of questions. 4. In the circular flow diagram of a market economy, the money flow labeled “expenditures” is connected to the market where the _____ question is primarily answered. a. Where? b. For Whom? c. What? d. How?; e. both b and d. 5. In the circular flow diagram of a market economy, households are suppliers in the resource market but businesses are the suppliers in the product market. 6. If we observe that Bill’s demand curve for hamburgers is vertical between $2.00 and $6.00, we are observing a violation of the assumption of rational self-interest. 7. An important feature of market economies is voluntary exchange. In voluntary exchanges all parties to the exchange expect to be better off after the exchange than before. 8. Consider the following quote from the New York Times: “The survey of business economists reveals that 80 percent believe the national debt is too large and should be reduced.” This report about the survey is positive, but the economists responding to the surveyor’s questions were being normative. 9. The basic source of the Economic Problem is: a. governments world-wide have tax rates that are too high. b. government regulations make producers inefficient c. the combined national debt of all nations is too high d. unions rules make both employers and employees inefficient. e. none above. 10. One of your reading assignments was about Pollution (pp. 818 - 820). This discussion included the following conclusion(s). a. Because the marginal cost of increasing air cleanliness rises whereas the marginal benefit falls, the optimal degree of air cleanliness is where the marginal cost and marginal benefit are equal.
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This note was uploaded on 02/13/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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EX1AS09 for Old Exam File - 1 ECONOMICS 202 - EXAM 1A -...

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