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practicequestiontest1 - Econ 202 Exam 1 Practice Problems...

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Econ 202 Exam 1 Practice Problems Principles of Microeconomics Dr. Phillip Miller Multiple Choice Identify the choice that best completes the statement or answers the question. Chapters 1 and 2 ____ 1. For an economist, the idea of making assumptions is regarded generally as a a. bad idea, since doing so leads to the omission of important ideas and variables from economic models. b. bad idea, since doing so invariably leads to data-collection problems. c. good idea, since doing so helps to simplify the complex world and make it easier to understand. d. good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand. ____ 2. Production possibilities frontiers are usually bowed outward. This is because a. the more resources a society uses to produce one good, the fewer resources it has available to produce another good. b. it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced. c. of the effects of technological change. d. resources are specialized; that is, some are better at producing particular goods rather than other goods. Figure 2-4 brushes A B C D 10 20 30 40 50 60 70 80 tooth- 5 10 15 20 25 30 35 40 45 50 toasters ____ 3. Refer to Figure 2-4 . It is possible for this economy to produce a. 40 toothbrushes and 20 toasters. b. 50 toothbrushes and 30 toasters. c. 70 toothbrushes and 40 toasters. d. All of the above.
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____ 4. Refer to Figure 2-4 . It is not possible for this economy to produce at point a. A. b. B. c. C. d. D. Figure 2-5 A B C D baseballs F 30 60 90 120 150 180 210 240 270 300 330 bananas 25 50 75 100 125 150 175 200 225 ____ 5. Refer to Figure 2-5 . A movement from point C to point D could be caused by a. unemployment. b. a decrease in society's preference for bananas. c. fewer resources available for production of bananas. d. All of the above are correct. Chapter 3 Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. Minutes Needed to Make 1 Bushel of Corn Pound of Pork Sardi 20 12 Tinaka 15 10 ____ 6. Refer to Table 3-1. Sardi has an absolute advantage in the production of a. corn and Tinaka has an absolute advantage in the production of pork. b. pork and Tinaka has an absolute advantage in the production of corn. c. both goods and Tinaka has an absolute advantage in the production of neither good. d. neither good and Tinaka has an absolute advantage in the production of both goods.
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practicequestiontest1 - Econ 202 Exam 1 Practice Problems...

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