Post Mod3 Micro 2012 Mid-term

Post Mod3 Micro 2012 Mid-term - Microeconomics Mid-Term...

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Microeconomics Mid-Term Exam STUDENT’S NAME: Eron Lindsey INSTRUCTIONS: 1. PLEASE PRINT YOUR NAME. 2. PRINT YOUR ANSWERS CLEARLY. MULTIPLE CHOICE QUESTIONS C_______1. When the government redistributes income from the wealthy to the poor, a. efficiency is improved, but equality is not. b. both wealthy people and poor people benefit directly. c. people work less and produce fewer goods and services. d. the government collects less revenue in total. C______2. High-school athletes who skip college to become professional athletes a. obviously do not understand the value of a college education. b. usually do so because they cannot get into college. c. understand that the opportunity cost of attending college is very high. d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes. B______3. A rational decision maker takes an action only if the a. marginal benefit is less than the marginal cost. b. marginal benefit is greater than the marginal cost. c. average benefit is greater than the average cost. d. marginal benefit is greater than both the average cost and the marginal cost. A_______4. It costs a company $40,000 to produce 4000 basketballs. The company’s cost will be $40,009 if it produces an additional basketball. If the company produces 4,000 basketballs then a. its average cost is greater than its marginal cost. b. its average cost and its marginal cost are equal. c. its average cost is less than its marginal cost. d. there is insufficient information to compute average and marginal costs. . 1
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B_______5. Ralph Nader's book Unsafe at Any Speed caused Congress to require a. safety glass in all new cars. b. seat belts in all new cars. c. air bags in all new cars. d. stricter drunk driving laws in all states. B_______6. The "invisible hand" directs economic activity through a. advertising. b. prices. c. central planning. d. government regulations. B_______7. The government enforces property rights by a. requiring property owners to pay property taxes. b. providing police and courts. c. forcing people to own property. d. providing public parks and recreation facilities. D_______8. The historical rise in living standards of American workers is primarily a result of a. the influence of labor unions in America. b. tariff protection imposed by the American government. c. the enactment of minimum-wage laws in America. d. the rise in American productivity. B_______9 The business cycle is the a. relationship between unemployment and inflation. b. irregular fluctuations in economic activity. c. positive relationship between the quantity of money in an economy and inflation. d. predictable changes in economic activity due to changes in government spending and taxes. D_______10.
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Post Mod3 Micro 2012 Mid-term - Microeconomics Mid-Term...

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