First Exam versionAa

First Exam versionAa - First Exam Spring 2012 Version A...

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First Exam Spring 2012 Version A Student: ___________________________________________________________________________ 1. In economics, which of the following is the best example of capital? A. The executive producer of a new adventure movie. B. Money held in a checking account. C. Investment in training for employees in an accounting firm. D. A computer used by a lawyer to prepare legal documents. 2. Per capita GDP will always rise when: A. The rate of economic growth increases. B. There is an increase in the rate at which the economy's labor force grows. C. The population rises. D. The rate of economic growth exceeds the rate of population growth.
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Figure 3.4 - Shifts of supply and demand 3. Which panel of Figure 3.4 represents the changes in the market for chicken when farmers use hormones to increase the production of chicken, but consumers are concerned about eating the chicken? A. C B. A C. B D. D 4. Which panel of Figure 3.4 represents the changes in the market for parking spaces when the student population increases on a college campus and one parking lot has been destroyed to build a new building? A. C B. A C. B D. D
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Figure 1.1 - Production-possibilities curve 5. Society is producing the maximum potential output, given its existing resources and technology. Select the appropriate point. (See Figure 1.1) A. A B. D C. C D. B 6. Society is employing some of the available technology but not all of it. Select the appropriate point. (See Figure 1.1) A. B B. C C. D D. A 7. This level of output is only possible if the economy experiences economic growth. Select the appropriate point. (See Figure 1.1) A. A B. C C. D D. B
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Table 1.1 shows the tradeoff between different combinations of missile production and home construction, ceteris paribus. Complete the table by calculating the required opportunity costs for both missiles and houses. Then answer the indicated question(s). 8. In Table 1.1, the opportunity cost of increasing the production of houses from 17 to 21 in terms of missiles per house is: A. 2.00 missiles. B. 4.00 missiles. C. 0.25 of a missile. D. 0.14 of a missile. 9. A price ceiling is: A. An upper limit on the price of a good. B. A limit on the price of goods sold abroad. C. Above the equilibrium price. D. A lower limit on the price of a good. 10. Which of the following is not viewed as a role for the U.S. government? A. Protecting consumers from exploitation. B. Protecting the environment. C. Providing a legal framework for business. D. Owning the factors of production. 11. The study of economics focuses on: A. The role of money in our economy. B. The behavior of successful businesses. C. The elimination of opportunity costs.
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First Exam versionAa - First Exam Spring 2012 Version A...

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