110s09mid1key

110s09mid1key - Brigham Young University Department of...

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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? a) If the minimum wage is increased unemployment will also increase. b) Recessions are caused by unpredictable shocks to the economy c) The demand for cheeseburgers is elastic. d) Increasing the tax rate is the best way to achieve economic equality e) none of the above Use the following unit labor requirements for questions 3 – 6: USA Korea Rice 100 20 Movies 25 100 3. The relative cost of one movie in the USA is… a) 4 units of rice per movie b) 2 units of rice per movie c) ½ unit of rice per movie d) ¼ unit of rice per movie e) none of the above 4. _______ has the absolute advantage in producing rice, and _______ has the absolute advantage in producing movies. a) Korea, Korea b) Korea, the U.S. c) the U.S., Korea d) the U.S., the U.S. e) it is impossible to tell with the given information
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2 5. _______ has the comparative advantage in producing rice, and _______ has the comparative advantage in producing movies. a) Korea, Korea b) Korea, the U.S. c) the U.S., Korea d) the U.S., the U.S. e) it is impossible to tell with the given information 6. If the U.S. and Korea are free to trade rice and movies, then the US will… a) export both rice and movies b) export rice and import movies c) export movies and import rice
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This note was uploaded on 02/28/2012 for the course ECON 100 taught by Professor Kerkl.phillips during the Winter '10 term at BYU.

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110s09mid1key - Brigham Young University Department of...

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