TWELFTH PRACTICE TEST FOR THE FINAL EXAM
1.
Consider the graph on the next page. Which of the following statements is true about
point D?
a)
b)
c)
d)
the opportunity cost of wheat production is 60 units of potatoes
it is feasible but inefficient
the oppor

TENTH PRACTICE TEST FOR THE FIRST EXAM
1.
Suppose that terrorists destroy oil refineries throughout the country. This would be
represented by:
a)
b)
c)
d)
a movement down the U.S. production possibility frontier
a movement off the U.S. production possibil

Thirteenth Practice Test for the Final Exam
1.
Assume that spaghetti and rice are substitutes. An increase in the price of
spaghetti will cause:
a)
b)
c)
d)
the supply of rice to rise
the supply of rice to fall
the demand for rice to rise
the demand for r

FIRST SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
1.
Suppose a new inexpensive way is found to grow chickens. The effect of this technology
on the market for beef will be:
a)
a decrease in the equilibrium amount of beef consumed and an increase in the eq

FIFTH SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
1.
During the Persian Gulf War many of Kuwaits oil refineries were destroyed. This
would best be represented by:
a)
b)
c)
d)
a movement down Kuwaits production possibility frontier
a movement off Kuwaits

SIXTH SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
_
_
SCENARIO:
My husband and I both volunteer at a food pantry that serves the poor in our
town. We both pack bags for distribution and make sandwiches. The table below
shows what we can each do in one ho

NINTH PRACTICE TEST FOR THE FINAL EXAM
1.
If Brooklyn College tuition rises:
a)
b)
c)
d)
the opportunity cost of attending Brooklyn College falls
the opportunity cost of attending Brooklyn College rises
the opportunity cost of attending Brooklyn College i

FOURTH SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
1.
Consider the following production possibility frontier
computers
cars
1000
0
900
200
750
300
550
375
325
425
0
450
Which of the following statements is true?
a)
b)
c)
d)
the opportunity cost of 900 co

EIGHTH PRACTICE TEST FOR THE FINAL EXAM
1.
Suppose that Burger King reduces the price of its burgers from $2 to $1. As Burger King
believes that its profits will be higher at the lower price, it must be true that the demand
for its product is:
a)
b)
c)
d)

THIRD SET OF PRACTICE QUESTIONS FOR FINAL EXAM
1.
The opportunity cost of going to the movies:
a)
b)
c)
d)
is zero if you have a free pass
is the price of the ticket and the value of the alternative use of your time
is equal to the cost of the ticket
does

EIGHTEENTH PRACTICE TEST FOR THE FINAL EXAM
1.
Suppose that new way is found to raise salmon in fish farms. Assume that farm raised
salmon and wild salmon are substitutes. The effect of this technology on the market for
wild salmon will be:
a)
a decrease

SEVENTH SET OF PRACTICE QUESTIONS FOR THE SECOND EXAM
1.
Suppose that your nominal income and the price level both double. It:
a)
b)
c)
d)
is not clear what has happened to real income
follows that real income has doubled
follows that real income has quad

EIGHTH SET OF PRACTICE QUESTIONS FOR THE FIRST EXAM
1.
An earthquake hits Northern California and damages production of computer chips. This
would be represented by:
a)
b)
c)
d)
a movement down the U.S. production possibility frontier
a movement off the U

ELEVENTH PRACTICE TEST FOR THE FINAL EXAM
1.
Wheat
Corn
Consider the following points on a production possibility frontier.
1000
0
900
200
800
350
700
475
600
595
500
695
300
785
200
855
100
900
0
925
The opportunity cost of producing 700 units of wheat i

SECOND SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
1.
Consider the following points on a production possibility frontier.
Wheat
Corn
1000
0
900
200
800
350
700
475
600
595
500
695
300
785
200
855
100
900
0
925
Which of the following statements is true?
a

NINETEENTH PRACTICE TEST FOR THE FINAL EXAM
1.
Consider the following points on a hypothetical PPF.
Wheat
0
70
71
72
100
Corn
80
60
58
54
0
The opportunity cost of 70 units of wheat is equal to:
a)
b)
c)
d)
60 units of corn
20 units of corn
0 units of cor

THIRD SET OF PRACTICE QUESTIONS FOR THE SECOND EXAM
1.
Suppose that nominal GNP and real GNP both double over a two year period. We can
say that:
a)
b)
c)
d)
prices have quadrupled
prices have doubled
prices are unchanged
prices have fallen by 50%
2.
If y

ELEVENTH PRACTICE TEST FOR THE SECOND EXAM
1.
Suppose that real GNP rises from $1 trillion to $4 trillion and prices are unchanged. It
follows that nominal GNP:
a)
b)
c)
d)
has risen by 50%
has doubled
is unchanged
has quadrupled
2.
If leakages exceed inj

TENTH PRACTICE TEST FOR THE SECOND EXAM
1.
Suppose that nominal GNP rises from $1 trillion to $8 trillion and prices quadruple (i.e. go up
by a factor of four) over a 10 year period. It follows that real GNP:
a)
b)
c)
d)
has risen by 50%
has doubled
is un

SIXTEENTH PRACTICE TEST FOR THE FINAL EXAM
1.
Suppose that due to global warming the number of lobsters available in Atlantic waters has
fallen. The most likely impact will be that:
a)
b)
c)
d)
the equilibrium price and quantity of lobster will both rise

SECOND SET OF PRACTICE QUESTIONS FOR THE SECOND EXAM
1.
If real GNP has doubled and nominal GNP has quadrupled we can say that:
a)
b)
c)
d)
prices have quadrupled
prices have doubled
prices are unchanged
prices have fallen by 50%
2.
If you purchase $10 mi

FIRST SET OF PRACTICE QUESTIONS FOR THE SECOND EXAM
1.
Suppose that nominal GNP rises from $1 trillion to $6 trillion and prices double over a 10
year period. It follows that real GNP:
a)
b)
c)
d)
has risen by 50%
has doubled
is unchanged
has tripled
2.
A

FOURTEENTH PRACTICE TEST FOR THE FINAL EXAM
1.
Assume that software and computer hardware are complements. A reduction in the price
of hardware will cause:
a)
b)
c)
d)
the equilibrium price and quantity of software to both rise
the equilibrium price and q

SEVENTH SET OF PRACTICE QUESTIONS FOR THE FINAL EXAM
1.
Suppose that you are paid $10/hour and can choose how many hours to work. If you
leave work an hour early to watch a hockey game:
a)
b)
c)
d)
the opportunity cost is zero because you prefer the hocke

TENTH PRACTICE TEST FOR THE FINAL EXAM
1.
The Metropolitan Transit Authority has just raised the subway fare by 20% and
revenue is unchanged. It follows that:
a)
b)
c)
d)
demand is elastic
demand is perfectly elastic
demand is inelastic
demand is unit ela

THIRTEENTH PRACTICE TEST FOR THE FIRST EXAM
1.
Wheat
Corn
Consider the following production possibilities curve.
0
400
10
360
20
310
30
250
40
180
50
0
Which of the following statements is true?
a)
b)
c)
d)
the opportunity cost of 310 units of corn is 20

NINTH PRACTICE TEST FOR THE FIRST EXAM
1.
Wheat
Corn
Consider the following PPF:
0
1000
10
900
20
700
30
450
40
0
Which of the following statements is true?
a)
b)
c)
d)
the opportunity cost of 1000 units of corn is 0 units of wheat
the opportunity cost of

FOURTEENTH PRACTICE TEST FOR THE FIRST EXAM
1.
Suppose that the economy is initially on its PPF but there is an increase in
unemployment. This will cause:
a)
b)
c)
d)
the PPF to move inwards
the PPF to move outwards
the economy to move to a point within t

TWELFTH PRACTICE TEST FOR THE SECOND EXAM
1.
Suppose that real GNP triples and prices are unchanged. It follows that nominal GNP:
a)
b)
c)
d)
has quadrupled
has tripled
is unchanged
has fallen by two-thirds
2.
Suppose that real GNP doubles and nominal GNP

FOURTH SET OF PRACTICE QUESTIONS FOR THE SECOND EXAM
1.
Suppose that prices and real GNP both double over a ten year period. It follows that
nominal GNP:
a)
b)
c)
d)
is unchanged
has quadrupled
has doubled
has fallen by 50%
2.
Suppose that an individual t