Econ+20A+F09+-+Midterm+1+Sample+Questions 09f

Econ+20A+F09+-+Midterm+1+Sample+Questions 09f - Name: _...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Econ 20A F09 - Midterm 1 Sample Questiona Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. When government policies are enacted, a. equality can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without a reduction in equality. b. efficiency can usually be enhanced without a reduction in equality, but equality can never be enhanced without an efficiency loss. c. it is always the case that either efficiency and equality are both enhanced, or efficiency and equality are both diminished. d. None of the above are correct. ____ 2. Suppose after graduating from college you get a job working at a bank earning $30,000 per year. After two years of working at the bank earning the same salary, you have an opportunity to enroll in a one-year graduate program that would require you to quit your job at the bank. Which of the following should not be included in a calculation of your opportunity cost? a. the cost of tuition and books to attend the graduate program b. the $30,000 salary that you could have earned if you retained your job at the bank c. the $45,000 salary that you will be able to earn after having completed your graduate program d. the value of insurance coverage and other employee benefits you would have received if you retained your job at the bank. ____ 3. For which of the following individuals would the opportunity cost of going to college be highest? a. a promising young mathematician who will command a high salary once she earns her college degree b. a student with average grades who has never held a job c. a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree d. a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball ____ 4. When calculating the cost of college, which of the following should you probably not include? a. The cost of tuition b. The cost of books required for college classes c. The income you would have earned had you not gone to college d. The cost of rent for your off-campus apartment. ____ 5. In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers? a. to produce good quality products so that society would benefit from the resources used b. to conserve on costs, so as to maintain efficiency in the economy c. to produce enough to meet the output target, without regard for quality or cost d. to produce those products that society desires most
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Name: ________________________ ID: A 2 ____ 6. The basic principles of economics suggest that a. markets are seldom, if ever, a good way to organize economic activity.
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This note was uploaded on 03/11/2012 for the course ECON 20A 45206 taught by Professor Chen during the Spring '12 term at UC Irvine.

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Econ+20A+F09+-+Midterm+1+Sample+Questions 09f - Name: _...

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