Question 1

Suppose a production possibilities frontier can be expressed as   .The opportunity cost of going from 0 units of   to 1 unit of   is approximately

Accepted Answer

A)  .17 
B)  .59 
C)  2.24 
D)  3 
A)  .17 
B)  .59 
C)  2.24 
D)  3 A

Question 2

If society is producing a combination of goods on its production possibilities frontier

Accepted Answer

A)  it must be employing all available resources. 
B)  it must be growing. 
C)  it is using all the available natural resources but may not be using all available labor resources. 
D)  Both a and b. 
A)  it must be employing all available resources. 
B)  it must be growing. 
C)  it is using all the available natural resources but may not be using all available labor resources. 
D)  Both a and b. A

Question 3

The Ricardian notion that of diminishing returns implies that

Accepted Answer

A)  as more input is used more output will be made. 
B)  as more input is used less output will be made. 
C)  as more input is used the increase in output will increase. 
D)  as more input is used the increase in output will decrease. 
A)  as more input is used more output will be made. 
B)  as more input is used less output will be made. 
C)  as more input is used the increase in output will increase. 
D)  as more input is used the increase in output will decrease. D

Question 4

Suppose   and   .The equilibrium quantity is

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 5

If the production possibilities frontier can be expressed as 4X2 + Y2 = 16 then the point X =   ; Y = 2 is

Accepted Answer

A)  outside the production possibilities frontier 
B)  on the production possibilities frontier 
C)  inside the production possibilities frontier 
D)  in the wrong quadrant to be on the graph 
A)  outside the production possibilities frontier 
B)  on the production possibilities frontier 
C)  inside the production possibilities frontier 
D)  in the wrong quadrant to be on the graph

Question 6

If the Y-intercept of a linear function increases while the slope remains unchanged

Accepted Answer

A)  the graph must shift down. 
B)  the graph must rotate to the left about the X intercept. 
C)  the graph must shift up. 
D)  the graph remains unchanged. 
A)  the graph must shift down. 
B)  the graph must rotate to the left about the X intercept. 
C)  the graph must shift up. 
D)  the graph remains unchanged.

Question 7

Positive economic analysis

Accepted Answer

A)  involves the study of firms with positive profits. 
B)  involves how resources are actually used in an economy. 
C)  involves judgments on how resources should be used in an economy. 
D)  is usually thought to be a waste of time. 
A)  involves the study of firms with positive profits. 
B)  involves how resources are actually used in an economy. 
C)  involves judgments on how resources should be used in an economy. 
D)  is usually thought to be a waste of time.

Question 8

If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts,there is a(n)

Accepted Answer

A)  shortage at the $10 price. 
B)  surplus at the $10 price. 
C)  equilibrium in this market. 
D)  shortage if price were to rise above $10. 
A)  shortage at the $10 price. 
B)  surplus at the $10 price. 
C)  equilibrium in this market. 
D)  shortage if price were to rise above $10.

Question 9

The X-intercept of Y = 4X + 12 is

Accepted Answer

A)  -3. 
B)  3. 
C)  −1/3. 
D)  12. 
A)  -3. 
B)  3. 
C)  −1/3. 
D)  12.

Question 10

Suppose you can write generic supply and demand curves such that QS = A + BP and QD = D + CP.In the usual supply-demand configuration,D must be

Accepted Answer

A)  positive 
B)  negative 
C)  0 
A)  positive 
B)  negative 
C)  0

Question 11

Suppose right (R)and left (L)shoes are only useful if produced in equal proportion and societal happiness is expressed as min(R,L).The contour lines would be

Accepted Answer

A)  downward sloping lines 
B)  upward sloping lines 
C)  L-shaped 
D)  backward L-shaped 
A)  downward sloping lines 
B)  upward sloping lines 
C)  L-shaped 
D)  backward L-shaped

Question 12

Suppose T = .02S1$\alpha$.If taxes are progressive which of the following is true?

Accepted Answer

A) $\alpha$ > 1 B) 0 < $\alpha$< 1 C) $\alpha$ = 1 D) $\alpha$ = 0 A) $\alpha$ > 1 B) 0 < $\alpha$< 1 C) $\alpha$ = 1 D) $\alpha$ = 0

Question 13

The solution to the simultaneous equations 5X - Y = 10 and 10X + Y = 35 is

Accepted Answer

A)  X = 15, Y = 0. 
B)  X = 3, Y = 5. 
C)  X = 5, Y = 3. 
D)  None of these. 
A)  X = 15, Y = 0. 
B)  X = 3, Y = 5. 
C)  X = 5, Y = 3. 
D)  None of these.

Question 14

Graphically,the solution to a system of two independent linear equations is usually

Accepted Answer

A)  the average of the slopes. 
B)  the average of the intercepts. 
C)  a single point. 
D)  None of these. 
A)  the average of the slopes. 
B)  the average of the intercepts. 
C)  a single point. 
D)  None of these.

Question 15

The problem of scarcity

Accepted Answer

A)  arises only in poor countries. 
B)  exists because the price of goods is too high. 
C)  exists because of limited resources. 
D)  will eventually be solved by better planning. 
A)  arises only in poor countries. 
B)  exists because the price of goods is too high. 
C)  exists because of limited resources. 
D)  will eventually be solved by better planning.

Question 16

For the equation Y = X2 + Z2,which of the following points lie on the Y = 25 contour line?

Accepted Answer

A)  X = 2, Z = 4. 
B)  X = 3. Z = 5. 
C)  X = 4, Z = 3. 
D)  Both a and c. 
A)  X = 2, Z = 4. 
B)  X = 3. Z = 5. 
C)  X = 4, Z = 3. 
D)  Both a and c.

Question 17

An increase in the technology used in the production of only one of the two goods in a society will

Accepted Answer

A)  eliminate scarcity 
B)  move the production possibilities frontier out in all directions 
C)  move the production possibilities frontier in all directions 
D)  leave one corner of the production possibilities frontier fixed and swing out from the other 
A)  eliminate scarcity 
B)  move the production possibilities frontier out in all directions 
C)  move the production possibilities frontier in all directions 
D)  leave one corner of the production possibilities frontier fixed and swing out from the other

Question 18

Let QD = -5P + 54 and QS = P - 6.Equilibrium can be found at

Accepted Answer

A)  Q = 4; P = 10 
B)  Q = 6; P = 10 
C)  P = 6; Q = 0 
D)  Q =   ; P = 2 
A)  Q = 4; P = 10 
B)  Q = 6; P = 10 
C)  P = 6; Q = 0 
D)  Q =   ; P = 2

Question 19

Suppose a production possibilities frontier can be expressed as 9X2 + Y2 = 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?

Accepted Answer

A)  45 
B)    
C)    -   
D)  1 
A)  45 
B)    
C)    -   
D)  1

Question 20

Given Y = f(X,Z),which of the following are necessarily true?

Accepted Answer

A)  Y is a linear function. 
B)  X, Z are dependent variables. 
C)  A contour line of this function would keep Y constant. 
D)  An increase in X would increase Y. 
A)  Y is a linear function. 
B)  X, Z are dependent variables. 
C)  A contour line of this function would keep Y constant. 
D)  An increase in X would increase Y.

Suppose a production possibilities frontier can be expressed as .The opportunity cost of going from 0 units of to 1 unit of is approximately

If society is producing a combination of goods on its production possibilities frontier

The Ricardian notion that of diminishing returns implies that

Suppose and .The equilibrium quantity is

If the production possibilities frontier can be expressed as 4X² + Y²= 16 then the point X = ; Y = 2 is

If the Y-intercept of a linear function increases while the slope remains unchanged

Positive economic analysis

If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts,there is a(n)

The X-intercept of Y = 4X + 12 is

Suppose you can write generic supply and demand curves such that Q_S = A + BP and Q_D = D + CP.In the usual supply-demand configuration,D must be

Suppose right (R)and left (L)shoes are only useful if produced in equal proportion and societal happiness is expressed as min(R,L).The contour lines would be

Suppose T = .02S1^$\alpha$.If taxes are progressive which of the following is true?

The solution to the simultaneous equations 5X - Y = 10 and 10X + Y = 35 is

Graphically,the solution to a system of two independent linear equations is usually

The problem of scarcity

For the equation Y = X²+ Z²,which of the following points lie on the Y = 25 contour line?

An increase in the technology used in the production of only one of the two goods in a society will

Let Q_D = -5P + 54 and Q_S = P - 6.Equilibrium can be found at

Suppose a production possibilities frontier can be expressed as 9X² + Y² = 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?

Given Y = f(X,Z),which of the following are necessarily true?

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

Exam 1: Economic Models

Suppose a production possibilities frontier can be expressed as .The opportunity cost of going from 0 units of to 1 unit of is approximately

If society is producing a combination of goods on its production possibilities frontier

The Ricardian notion that of diminishing returns implies that

Suppose and .The equilibrium quantity is

If the production possibilities frontier can be expressed as 4X2 + Y2 = 16 then the point X = ; Y = 2 is

If the Y-intercept of a linear function increases while the slope remains unchanged

Positive economic analysis

If the prevailing price of shirts is $10 and at this price demanders demand 100 shirts while suppliers are willing to supply 110 shirts,there is a(n)

The X-intercept of Y = 4X + 12 is

Suppose you can write generic supply and demand curves such that QS = A + BP and QD = D + CP.In the usual supply-demand configuration,D must be

Suppose right (R)and left (L)shoes are only useful if produced in equal proportion and societal happiness is expressed as min(R,L).The contour lines would be

Suppose T = .02S1 α\alphaα .If taxes are progressive which of the following is true?

The solution to the simultaneous equations 5X - Y = 10 and 10X + Y = 35 is

Graphically,the solution to a system of two independent linear equations is usually

The problem of scarcity

For the equation Y = X2 + Z2,which of the following points lie on the Y = 25 contour line?

An increase in the technology used in the production of only one of the two goods in a society will

Let QD = -5P + 54 and QS = P - 6.Equilibrium can be found at

Suppose a production possibilities frontier can be expressed as 9X2 + Y2 = 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?

Given Y = f(X,Z),which of the following are necessarily true?

Utility and Choice

Individual Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

If the production possibilities frontier can be expressed as 4X² + Y²= 16 then the point X = ; Y = 2 is

Suppose you can write generic supply and demand curves such that Q_S = A + BP and Q_D = D + CP.In the usual supply-demand configuration,D must be

Suppose T = .02S1^$\alpha$.If taxes are progressive which of the following is true?

For the equation Y = X²+ Z²,which of the following points lie on the Y = 25 contour line?

Let Q_D = -5P + 54 and Q_S = P - 6.Equilibrium can be found at

Suppose a production possibilities frontier can be expressed as 9X² + Y² = 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?