Quiz 1 - Quiz 1 Name Pledge Multiple Choice 1 The...

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Quiz 1 Name:__________________________________ Pledge:_________________________________ Multiple Choice 1. The opportunity cost of choosing an alternative a. is the value of the highest valued alternative forgone as the result of the choice. b. includes only the amount of time spent on whatever is chosen. c. includes only the money cost of the option. d. is irrelevant for most choices individuals face. 2. Based on the idea of opportunity cost, which of the following students would be most likely to drop out of college before completing their degree? a. a senior math major with a B average. b. a junior physical therapy major who just found out that people in her area of study with a degree get very good jobs. c. a college football player in his third year who is very confident he will be drafted into the NFL in the first round. d. a junior economics major with an A average. 3. Middlemen are individuals who a. add to the buyer’s expense without performing a useful function. b. add to the seller’s costs without performing a useful function. c. provide services that reduce the cost of transactions and help achieve additional gains from trade. d. act as an intermediary between the top management at a company and the hourly employees. 4. A point outside of the production possibilities frontier represents a combination of goods that is a. inefficient b. efficient c. unattainable d. attainable 5. If an economy uses its resources inefficiently, this situation would be illustrated on a production possibilities frontier as a. an inward shift of the PPF b. an outward shift of the PPF c. operating at a point outside the PPF d. operating at a point inside the PPF
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6. Which of the following most accurately states the economic significance of exchange (trade)? a. Physical goods have value because they exist; exchange can neither increase nor decrease their value. b.
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This note was uploaded on 04/07/2008 for the course ECON 201 taught by Professor Williams during the Fall '08 term at UVA.

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Quiz 1 - Quiz 1 Name Pledge Multiple Choice 1 The...

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