1 Brigham Young University Department of Economics Economics 110 – Principles of Economics Professor Kerk Phillips – Spring Term 2009 Midterm #1 5/14 (Thu) – 5/15 (Fri) Testing Center This test is multiple choice, fill in your answers on the answer sheet and do not write on this exam. It is closed book and closed notes. There is no time limit and you may use calculators; either those provided by the testing center or your own as long as it is not a programmable calculator. Read all questions carefully before answering. 1. Which of the following is NOT one of Mankiw’s ten principles? a) Rational people think at the margin b) People respond to incentives c) Trade will always make everyone better off d) People face tradeoffs e) ALL of the above are among Mankiw’s ten principles. 2. Which of the following is a normative statement? Use the following unit labor requirementsfor questions 3 – 6: USA Korea Rice 100 20 Movies 25 100 3. The relative cost of one movie in the USA is… 4. _______ has the absolute advantage in producing rice, and _______ has the absolute advantage in producing movies.
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