2020 -- midterm 1 - Name: _ _ Date: ECO 2020 (902) 11656...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: __________________________________________________ Date: ___________________ ECO 2020 (902) 11656 MIDTERM 1 Wayne State Uni- versity Instructor: Jinghua Huang Fall 2011 PART 1 Multiple Choice Questions: Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Approximately what percentage of the world's economies experience scarcity? a. 25% b. 50% c. 75% d. 100% ____ 2. Mallory decides to spend three hours working overtime rather than watching a video with her friends. She earns $8 an hour. Her opportunity cost of working is a. the $24 she earns working. b. the $24 minus the enjoyment she would have received from watching the video. c. the enjoyment she would have received had she watched the video. d. nothing, since she would have received less than $24 of enjoyment from the video. ____ 3. Russell spends an hour studying instead of playing tennis. The opportunity cost to him of studying is a. the improvement in his grades from studying for the hour. b. the improvement in his grades from studying minus the enjoyment of playing tennis. c. the enjoyment and exercise he would have received had he played tennis. d. zero. Since Russell chose to study rather than to play tennis, the value of studying must have been greater than the value of playing tennis. ____ 4. An example of a firm with market power is a a. delicatessen in New York. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
b. cable TV provider in St. Louis. c. clothing store in Los Angeles. d. family farm in Illinois. ____ 5. In a circular-flow diagram, a. taxes flow from households to firms, and transfer payments flow from firms to house- holds. b. income payments flow from firms to households, and sales revenue flows from households to firms. c. resources flow from firms to households, and goods and services flow from households to firms. d. inputs and outputs flow in the same direction as the flow of dollars, from firms to house- holds. ____ 6. Here are some production possibilities for an imaginary economy for a given year. Cars Newspapers 10 400 12 360 14 ? If the production possibilities frontier is bowed outward, then in place of "?" we might have a. 340. b. 330. c. 320. d. 310. Figure 2-3
Background image of page 2
____ 7. Refer to Figure 2-3 . The economy has the ability to produce at which point or points? a. B, D, E b. A, B, D, E c. D, C d. D Figure 2-4 ____ 8. Refer to Figure 2-4 . If the economy moves from point A to point D, the opportunity cost is a. 10 toasters. b. 20 toasters. c. 30 toasters. d. 30 toothbrushes. 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
9. Refer to Figure 2-4 . The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is a. 10 toothbrushes. b. 20 toothbrushes. c. 30 toothbrushes. d. none of the above; the economy cannot move from point D to point C. Figure 2-6
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/11/2012 for the course ECO 2020 taught by Professor Huang during the Winter '12 term at Wayne State University.

Page1 / 18

2020 -- midterm 1 - Name: _ _ Date: ECO 2020 (902) 11656...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online