MID1B - 1 EXAM VERSION B MULTIPLE CHOICE Choose the one...

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EXAM VERSION B MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 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 2) Assume that beef and pork are substitutes for consumers. There is a drought in the cattle grazing areas. The drought will cause the A) supply curve for pork to shift leftward. B) demand curve for pork to shift leftward. C) demand curve for pork to shift rightward. D) supply curve for pork to shift rightward. 1
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3) 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 4) If tea and coffee are substitutes, the cross elasticity of coffee with respect to the price of tea will be ________ and an increase in the price of tea will ________ the demand for coffee. A) positive; increase B) positive; decrease C) negative; increase D) negative; decrease 5) Which of the following shifts the supply curve for gasoline rightward? A) a decrease in the price of a resource used to produce gasoline, such as crude oil B) an increase in the price of gasoline C) an increase in the demand for gas-guzzling, sport utility vehicles D) a situation where the quantity demanded exceeds the quantity supplied 6) In the figure above, the efficient output of computers is A) the largest amount possible. B) 4 million per year. C) 2 million per year. D) 3 million per year. 7) The price of a gallon of milk falls. Which of the following is a possible cause? A) an increase in the income of the average household, with milk being a normal good B) a decrease in the price of oatmeal, a complement to milk C) a drought that reduces supplies of feed grains fed to cows that produce milk D) a discovery that milk cause diabetes 8) Positive and normative statements differ in that A) positive statements can be tested, whereas normative statements cannot. B) positive statements can be graphed, whereas normative statements cannot. C) normative statements depict "what is" and positive statements depict "what ought to be." D) normative statements can be tested, whereas positive statements cannot. 2
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9) Increasing opportunity cost is due to A) ever increasing taxes. B) the fact that it is more difficult to use resources efficiently the more society produces. C) the fact that resources are not equally suited for different types of production.
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MID1B - 1 EXAM VERSION B MULTIPLE CHOICE Choose the one...

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