MID1A - 1 EXAM VERSION A MULTIPLE CHOICE. Choose the one...

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EXAM VERSION A MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The slope of a production possibilities frontier that displays increasing opportunity cost is A) steeper near the horizontal intercept than near the vertical intercept. B) positive and constant. C) steeper near the vertical intercept than near the horizontal intercept. D) negative and constant. 2) If income decreases or the price of a complement rises, A) there is a downward movement along the demand curve for the good. B) the demand curve for a normal good shifts leftward. C) the demand curve for a normal good shifts rightward. D) there is an upward movement along the demand curve for the good. 3) Two countries, Alpha and Beta, have identical production possibilities frontiers. If Alpha produces at point a and Beta produces at point b , then ________. A) Beta's economic growth rate will exceed Alpha's B) Beta's future consumption will be greater than Alpha's C) Alpha's and Beta's economic growth rates will be the same D) Alpha consumes less than Beta today, but it will grow faster than Beta 4) The price of a good will fall if A) the current price is less than the equilibrium price. B) there is a surplus at the current price. C) the quantity demanded exceeds the quantity supplied. D) the price of a complement falls. 5) Making a choice at the margin means ________. A) waiting until the last minute to make a choice B) letting someone else choose for you C) making a choice by comparing the total benefit and the total cost D) deciding to do a little bit more or a little bit less of an activity 1
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6) In the figure above, which movement reflects how consumers would react to an increase in the price of a non-fruit snack? A) from point a to point e B) from point a to point c C) from point a to point b D) from point a to point d 7) The law of demand implies that, other things remaining the same, A) as the demand for cheeseburgers increases, the price of a cheeseburger will fall. B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease. C) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase. D) as income increases, the quantity of cheeseburgers demanded will increase. 8) The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of the tomato sauce used to produce pizza? A) Figure A B) Figure B C) Figure C D) Figure D 2
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9) The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda? A) Figure A B) Figure B C) Figure C D) Figure D 10) If a rise in the price of oranges from $7 to $9 a bushel, caused by a shift of the demand curve, increases the quantity of bushels supplied from 4,500 to 5,500 bushels, the A) demand for oranges is elastic. B) demand for oranges is inelastic.
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MID1A - 1 EXAM VERSION A MULTIPLE CHOICE. Choose the one...

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