2105 exam 1 VA - ECON 2105 Exam 1 (September 21, 2011)...

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ECON 2105 Exam 1 (September 21, 2011) Chapters 2-3 and 6-7 VERSION A 36 Multiple-Choice Questions. No cell phone calculators allowed during examination. Make sure to follow the instructions on the cover page on how to correctly complete your scantron for submission. If you have your optional extra credit paper, please turn it in with your examination at the end of class. No late or email submissions will be accepted/ Name: __________________________ Date: _____________ 1. A decrease in supply is caused by: A) an increase in the number of producers. B) an increase in prices of goods that are substitutes in production. C) suppliers' expectations of lower prices in the future. D) an advancement in the technology for producing the good. 2. French fries and hamburgers are complements. Suppose that the cost of the ingredients used to make hamburgers rises, so that the price of a hamburger rises. Then the equilibrium relative price of french fries ________ and the equilibrium quantity ________. A) falls; increases B) rises; increases C) falls; decreases D) rises; decreases Use the following to answer questions 3-4: Table: Peanut Butter and Jelly Economy Version 1 Page 1
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3. (Table: Peanut Butter and Jelly Economy) A simple economy produces only peanut butter and jelly. Using the data in the attached table, from 2008 to 2009 real GDP ____ by _____%. A) decreased; 50 B) increased; 43.75 C) decreased; 12.5 D) increased; 12.5 4. (Table: Peanut Butter and Jelly Economy) A simple economy produces only peanut butter and jelly. Using the data in the attached table, nominal GDP in 2009 was ____ and real GDP in 2009 was _____. A) $525; $400 B) $450; $400 C) $450; $575 D) $525; $450 Use the following to answer question 5: Figure: Consumer and Capital Goods Version 1 Page 2
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5. (Figure: Consumer and Capital Goods) The movement from Curve 1 to Curve 2 indicates: A) going from unemployment to full employment. B) a shift of the PPF towards producing less goods. C) a growing ability of the economy to produce capital and consumer goods. D) a decrease in the factors of production. 6. Increases in resources or improvements in technology will tend to cause a society's production possibility frontier to: A) shift outward to the right. B) become vertical. C) shift inward to the left. D) remain unchanged. Use the following to answer questions 7-8: Use this table to answer questions 142–149. Table: Comparative Advantage I 7. (Table: Comparative Advantage I) The opportunity cost of producing 1 unit of cell phones for Finland is: A) 1/10 unit of herring. B) 5 units of herring. C) 10 units of herring. D) 1/5 unit of herring. Version 1 Page 3
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8. (Table: Comparative Advantage I) Sweden has a comparative advantage in producing: A) both cell phones and herring. B)
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2105 exam 1 VA - ECON 2105 Exam 1 (September 21, 2011)...

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