70TEST I (Elementary Algebra)A certain familiarity with elementary algebra is an essential prerequisite for reading the textbook (and forunderstanding most modern economics texts). This test is designed for students and instructors to discoverwhether the students have the proper background. (In a number of countries, many beginning economicsstudents’ background in elementary algebra appears to have become much weaker during the last few years.In fact, lecturers using this test (or similar ones) have been shocked by the results, and have had to readjusttheir courses.)At the head of each problem, immediately after the number, the relevant sections of the introductorychapters in the book are given in parentheses, followed in square brackets by the number of points for acorrect answer to each separate part of the problem. In a 20–30 minute test, any student who scores less than50 (out of 100) has serious problems with elementary algebra. Such students definitely need to review therelevant section of Chapters 1 and 2, or consult other elementary material.