Econ1-Fall2010-Midterm1b-sols

Econ1-Fall2010-Midterm1b-sols - Econ 1 Midterm 1 Solutions...

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Econ 1, Midterm 1 Solutions Fall 2010 Multiple Choice: 1. If a nation can produce a good more quickly than any other nation, that nation has a(n) A. specialization advantage. B. comparative advantage. C. absolute advantage . D. relative advantage. (figure 1) 2. Refer to figure (1) above. According to the data, Pat has an absolute advantage in A. the production of pizza. B. neither production of pizza nor delivering pizza. C. delivering pizza . D. both production of pizza and delivering pizza. 3. Refer to figure (1) above. The comparative advantage for pizza production belongs to __________ and the comparative advantage for pizza delivery belongs to __________. A. Corey; Pat B. Pat; Corey C. Pat; Pat D. Corey; Corey 4. The production possibilities curve shows A. how increasing the inputs used for one good increases the production of the other good. B. the maximum production of one good for every possible production level of the other good . C. how increasing the production of one good allows production of the other good to also rise. D. the minimum production of one good for every possible production level of the other good.
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(figure 2) 5. Refer to figure (2) above. Which point is unattainable for Becky? A. t. B. u . C. v. D. w. 6. Refer to figure (2) above. Point w is _______ . A. both attainable and efficient . B. only attainable. C. only efficient. D. only unattainable. 7. The benefits of specialization can be used to explain why A. workers prefer to work on a variety of tasks during the day. B. machines don’t need paid vacations. C. trade can make both parties to the trade better off. D. big companies take advantage of smaller ones.
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(figure 3) 8. Refer to figure (3) above. At Point A, A. the economy is not operating efficiently. B. the opportunity cost of more movie production is high because resources that are better suited to cattle herding are being used to produce movies . C. the opportunity cost of more movie production is low because the economy is specializing in movie production. D. resources that are better suited to cattle herding than to movie production are all being used to herd cattle. 9. Refer to figure (3) above. This economy might be operating at Point B if
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This note was uploaded on 03/20/2012 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.

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Econ1-Fall2010-Midterm1b-sols - Econ 1 Midterm 1 Solutions...

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