Exam
Name
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The production possibility frontier is a graph that shows
A) all the combinations of goods and services that can be produced if all of so
PAGE 2 OF 10
1. [25] Suppose that the government imposes a proportional income tax on the representative
consumers wage income. That is, the consumers wage income is:
w(l ~ t)(h 1). (1)
Where t is the tax rate (0 < t < 1). What effect does the income tax
Section 1:,MultipleChoice Questions (3 points each).
Circle the letter of the best answer.
\l ' 1._Arrow"s Impossibility Theorem was developed by i
(a) enneth Arrow
William Spear
,:("E.):;Thomas Harpoon
L(d) Jonathan Boomerang
(e) Michael Slingshot
2: Th
1. James pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon
rate. One year later, after receiving the first coupon payment, James sells the bond. If the current one-year interest rate on
government bo
IVvl LUUV l I 'FV W Alill WI III E 58 hhhhhh v
meA (AMMMK Ad
1. In an economy with no Jive nment, which of the following is NOT an
w/
v/
expression of the equilibrium condition?
ii Output equals planned aggregate expenditure
Actual investment equals savin
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Economics deals primarily with the concept of
a. scarcity.
b. poverty.
0. change.
d. power.
2. The phenomenon of scarcity stems from the fact that
a. most ec
PAGE 2 OF 10
1. [25] Suppose that the government imposes a proportional income tax on the representative
consumers wage income. That is, the consumers wage income is:
w(l ~ t)(h 1). (1)
Where t is the tax rate (0 < t < 1). What effect does the income tax
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Economics deals primarily with the concept of
a. scarcity.
b. poverty.
0. change.
d. power.
2. The phenomenon of scarcity stems from the fact that
a. most ec
Section 1:,MultipleChoice Questions (3 points each).
Circle the letter of the best answer.
\l ' 1._Arrow"s Impossibility Theorem was developed by i
(a) enneth Arrow
William Spear
,:("E.):;Thomas Harpoon
L(d) Jonathan Boomerang
(e) Michael Slingshot
2: Th
IVvl LUUV l I 'FV W Alill WI III E 58 hhhhhh v
meA (AMMMK Ad
1. In an economy with no Jive nment, which of the following is NOT an
w/
v/
expression of the equilibrium condition?
ii Output equals planned aggregate expenditure
Actual investment equals savin
1. James pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon
rate. One year later, after receiving the first coupon payment, James sells the bond. If the current one-year interest rate on
government bo
Date:
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Economics is best dened as the study of how
a. individuals decide to use scarce resources in an attempt to satisfy their unlimited wants
b. to make m
Exam
Name
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The production possibility frontier is a graph that shows
A) all the combinations of goods and services that can be produced if all of so
Date:
Multiple Choice
Identify the choice that best completes the statement or answers the question.
1. Economics is best dened as the study of how
a. individuals decide to use scarce resources in an attempt to satisfy their unlimited wants
b. to make m