# Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 11:00 Section 06 TYPE A

Size: px
Start display at page:

Download "Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 11:00 Section 06 TYPE A"

Transcription

1 NAME: NO: SECTION: Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 11:00 Section 06 TYPE A Do not forget to write your full name, student number and section on the top. Turn off your cell phone and put it away. During the exam if you are seen with a cell phone, on or off, your exam will be taken away instantaneously. Put away all your lecture notes, books, etc. There are 60 multiple choice questions and 8 pages in the exam. Make sure you have them all. Please put all your answers in your answer key. Do not forget to put your exam type on your answer key. You have 80 minutes. GOOD LUCK!! 1. Which of the following is true? (a) Efficiency refers to the size of the economic pie; equality refers to how the pie is divided. (b) Government policies usually improve upon both equality and efficiency. (c) As long as the economic pie continually gets larger, no one will have to go hungry. (d) Efficiency and equality can both be achieved if the economic pie is cut into equal pieces. 2. Cole is refinishing an antique china cabinet and has already spent \$180 on the restoration. He expects to be able to sell the cabinet for \$360. Cole discovers that he needs to do an additional \$200 worth of work to make the cabinet worth \$360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for \$100. What should Cole do? (a) He should sell the cabinet now for \$100. (b) He should keep the cabinet since it wouldnt be rational to spend \$380 restoring a cabinet and then sell it for only \$360. (c) He should complete the additional work and sell the cabinet for \$360. (d) It does not matter which action he takes since the outcome will be the same either way. ANSWER: c (challenging) 3. In the simple circular-flow diagram, (a) households own the factors of production. (b) households buy all the goods and services that firms produce. (c) land, labor, and capital flow from households to firms. (d) All of the above are correct. 4. Production possibilities frontiers are usually bowed outward. This is because (a) the more resources a society uses to produce one good, the fewer resources it has available to produce another good. (b) the opportunity cost of producing a good decreases as more and more of that good is produced. (c) of the effects of technological change. 1

2 (d) resources are specialized; that is, some are better at producing particular goods rather than other goods. ANSWER: d (challenging) 5. Consider the production possibilities curve below for a country that can produce sweaters, apples (in bushels), or a combination of the two. 7. Korea has an absolute advantage in the production of (a) cars and a comparative advantage in the production of cars. (b) cars and a comparative advantage in the production of airplanes. (c) neither good and a comparative advantage in the production of cars. (d) neither good and a comparative advantage in the production of airplanes. 8. Assume that Japan and Korea each has 2400 hours available. Originally, each country divided its time equally between the production of cars and airplanes. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cars increased by The opportunity cost of moving from point U to point R is (a) 60 bushels of apples. (b) 80 bushels of apples. (c) 80 sweaters. (d) 160 sweaters. Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Answer questions from 6 to 10 considering the table below. (a) 16. (b) 40. (c) 64. (d) 80. ANSWER: a (challenging) 9. Japan and Korea would not be able to gain from trade if Korea s opportunity cost of one car changed to (a) 1/5 airplane. (b) 1/3 airplane. (c) 3 airplanes. (d) 5 airplanes. ANSWER: a (challenging) 6. Japan s opportunity cost of one car is (a) 1/5 airplane and Korea s opportunity cost of one car is 1/3 airplane. (b) 1/5 airplane and Korea s opportunity cost of one car is 3 airplanes. (c) 5 airplanes and Korea s opportunity cost of one car is 1/3 airplane. (d) 5 airplanes and Korea s opportunity cost of one car is 3 airplanes. 10. Without trade, Japan produced and consumed 50 cars and 6 airplanes and Korea produced and consumed 27 cars and 7 airplanes. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 28 cars for 8 airplanes. As a result, Japan gained (a) 0 cars and 2 airplanes and Korea gained 1 car and 1 airplane. (b) 2 cars and 2 airplanes and Korea gained 1 car and 1 airplane. (c) 28 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes. 2

3 (d) 52 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes. ANSWER: b (challenging) 11. When the price of a good or service changes, (a) the supply curve shifts in the opposite direction. (b) the demand curve shifts in the opposite direction. (c) the demand curve shifts in the same direction. (d) there is a movement along a given demand curve. 12. The law of demand states that, other things equal, an increase in (a) price causes quantity demanded to increase. (b) price causes quantity demanded to decrease. (c) quantity demanded causes price to increase. (d) quantity demanded causes price to decrease. 13. A decrease in demand is represented by a (a) movement downward and to the right along a demand curve. (b) movement upward and to the left along a demand curve. (c) rightward shift of a demand curve. (d) leftward shift of a demand curve. 14. Suppose that Amanda receives a pay increase. We would expect (a) to observe Amanda moving down and to the right along her given demand curve. (b) Amanda s demand for inferior goods to decrease. (c) Amanda s demand for each of two goods that are complements to increase. (d) Amanda s demand for normal goods to decrease. 15. If toast and butter are complements, then which of the following would increase the demand for toast? (a) a decrease in the price of toast (b) a decrease in the price of butter (c) an increase in the price of butter (d) Both a and b are correct. 16. Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market? (a) Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. (b) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. (c) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. (d) None of the above is correct. 17. New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased? (a) Price will fall, and the effect on quantity is ambiguous. (b) Price will rise, and the effect on quantity is ambiguous. (c) Quantity will fall, and the effect on price is ambiguous. (d) Quantity will rise, and the effect on price is ambiguous. ANSWER: b (challenging) 18. Which of the following sets of events must cause an increase in the price of a new house? (a) higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population, and expectations of higher house prices in the future (b) lower wages for carpenters, lower wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future (c) lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population and expectations of higher house prices in the future 3

4 (d) higher wages for carpenters, lower wood prices, decreases in consumer incomes, lower apartment rents, decreases in population and expectations of lower house prices in the future ANSWER: a (challenging) 19. Suppose the government has imposed a price ceiling on sliced sandwich bread. Which of the following events could transform the price ceiling from one that is binding to one that is not binding? (a) An increase in the price of flour, which is used to make bread. (b) A decrease in the price of lunch meat. (c) A decease in the price of unsliced bread, which people consider as a substitute for sliced bread. (d) An decrease in the price of peanut butter and jelly. ANSWER: d (challenging) 20. Which of the following observations would be consistent with the imposition of a binding price floor on a market? After the price floor becomes effective, (a) a smaller quantity of the good is bought and sold. (b) a larger quantity of the good is demanded. (c) a smaller quantity of the good is supplied. (d) the price falls below the equilibrium price. 21. If the government removes a binding price floor from a market, then the price received by sellers will (a) decrease, and the quantity sold in the market will decrease. (b) decrease, and the quantity sold in the market will increase. (c) increase, and the quantity sold in the market will decrease. (d) increase, and the quantity sold in the market will increase. ANSWER: b (challenging) Refer to the figure below for questions 22,23 and For a price ceiling to be binding in this market, it would have to be set at (a) any price below \$3. (b) a price between \$2 and \$3. (c) a price between \$3 and \$4. (d) any price above \$ For a price floor to be binding in this market, it would have to be set at (a) any price below \$3. (b) a price between \$2 and \$3. (c) a price between \$3 and \$4. (d) any price above \$ Suppose a price ceiling of \$2 is imposed on this market. As a result, (a) the quantity of the good supplied decreases by 30 units. (b) the demand curve shifts to the left so as to now pass through the point (quantity = 30, price = \$2). (c) buyers total expenditure on the good decreases by \$75. (d) buyers total expenditure on the good falls by \$15. ANSWER: d (challenging) 25. When a tax is imposed on the sellers of a good, the supply curve shifts (a) upward by the amount of the tax. (b) downward by the amount of the tax. 4

5 (c) upward by less than the amount of the tax. (d) downward by less than the amount of the tax. 26. A tax imposed on the buyers of a good will (a) raise both the price buyers pay and the effective price sellers receive. (b) raise the price buyers pay and lower the effective price sellers receive. (c) lower the price buyers pay and raise the effective price sellers receive. (d) lower both the price buyers pay and the effective price sellers receive. Refer to the figure below for questions 27,28 and For every unit of the good that is sold, sellers are required to send (a) one dollar to the government, and buyers are required to send two dollars to the government. (b) two dollars to the government, and buyers are required to send one dollar to the government. (c) three dollars to the government, and buyers are required to send nothing to the government. (d) nothing to the government, and buyers are required to send two dollars to the government. ANSWER: c (challenging) 30. The value of the housing services provided by the economy s owner-occupied houses is (a) included in GDP, and the estimated rental values of the houses are used to place a value on these housing services. (b) included in GDP, and the actual mortgage payments made on the houses are used to estimate the value of these rental services. (c) excluded from GDP since these services are not sold in any market. (d) excluded from GDP since the value of these housing services cannot be estimated with any degree of precision. 27. The price paid by buyers after the tax is imposed is (a) \$3. (b) \$4. (c) \$5. (d) \$ The effective price received by sellers after the tax is imposed is (a) \$3. (b) \$4. (c) \$5. (d) \$ Ryan lives in an apartment where he pays \$7,000 a year in rent. Sarah lives in a house that could be rented for \$21,000 a year. How much do these housing services contribute to GDP? (a) \$21,000 (b) \$28,000 (c) \$7,000 (d) \$14, Rachel babysits for her sister for no pay. When she babysits for someone else she charges \$8 an hour. When is Rachel s babysitting included in GDP? (a) When she babysits for her sister and when she babysits for someone else. (b) When she babysits for her sister, but not when she babysits for someone else. 5

6 (c) When she babysits for someone else, but not when she babysits for her sister. (d) Neither when she babysits for her sister nor for someone else. 33. If a state made a previously-illegal activity, such as gambling or prostitution, legal, then, other things equal, GDP (a) decreases. (b) increases. (c) doesn t change because both legal and illegal production are included in GDP. (d) doesn t change because these activities are never included in GDP. 34. A farmer sells \$25,000 worth of apples to individuals who take them home to eat, \$50,000 worth of apples to a company that uses them all to produce cider, and \$75,000 worth of apples to a grocery store that will sell them to households. How much of the farmer s sales will be included as apples in GDP? (a) \$25,000 (b) \$150,000 (c) \$100,000 (d) \$125, A farmer sells five pounds of pecans to a Smith s Fresh Pecans for \$10. Smith s Fresh Pecans resells three pounds for \$4.50 per pound. The remaining pecans are shelled and canned and sold for a total of \$8.00. Taking these transactions into account, how much is added to GDP? (a) \$22.50 (b) \$29.50 (c) \$21.50 (d) \$31.50 ANSWER: c (challenging) 36. The Patersons bought a home that was newly constructed in 2007 for \$275,000. They sold the home in 2015 for \$255,000. Which of the following statements is correct regarding the sale of the house? (a) The 2015 sale increased 2015 GDP by \$255,000 and had no effect on 2007 GDP. (b) The 2015 sale reduced 2015 GDP by \$20,000 and had no effect on 2007 GDP. (c) The 2015 sale increased 2015 GDP by \$255,000; and caused 2007 GDP to be revised downward by \$20,000. (d) The 2015 sale affected neither 2007 GDP nor 2015 GDP. 37. Sheri, a U.S. citizen, works only in Germany. The value she adds to production in Germany is included (a) in both German GDP and U.S. GDP. (b) in German GDP, but is not included in U.S. GDP. (c) in U.S. GDP, but is not included in German GDP. (d) in neither German GDP nor U.S. GDP. 38. Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2010 Quality Motors produced \$30 million worth of automobiles, with \$17 million in sales to Americans, \$9 million in sales to Canadians, and \$4 million worth of automobiles added to Quality Motors inventory. The transactions just described contribute how much to U.S. GDP for 2010? (a) \$17 million (b) \$21 million (c) \$26 million (d) \$30 million ANSWER: d (challenging) 39. If you buy a burger and fries at your favorite fast food restaurant, (a) then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant. (b) then GDP will be higher, but consumption spending will be unchanged. (c) then GDP will be unchanged, but consumption spending will be higher. (d) then both GDP and consumption spending will be higher. 6

7 40. Consumer goods that are produced, go into inventory, and are not sold during the current period are (a) counted as intermediate goods and so are not included in current period GDP. (b) counted in current period GDP only if the firm that produced them sells them to another firm. (c) included in current period GDP as inventory investment. (d) included in current period GDP as consumption. 41. Which of the following items is counted as part of government purchases? (a) The federal government pays the salary of a Navy officer. (b) The state of Nevada pays a private firm to repair a Nevada state highway. (c) The city of Las Vegas, Nevada pays a private firm to collect garbage in that city. (d) All of the above are correct. 42. The U.S. Air Force pays a Turkish citizen \$30,000 to work on a U.S. base in Turkey. As a result, (a) U.S. government purchases increase by \$30,000; U.S. net exports decrease by \$30,000; and U.S. GDP is unaffected. (b) U.S. government purchases increase by \$30,000; U.S. net exports are unaffected; and U.S. GDP increases by \$30,000. (c) U.S. government purchases, net exports, and GDP are unaffected. (d) U.S. government purchases are unaffected; U.S. net exports decrease by \$30,000; and U.S. GDP decreases by \$30,000. ANSWER: a (challenging) 43. In the economy of Talikastan in 2015, consumption was \$800, GDP was \$2000, government purchases were \$400, and investment was \$600. What were Talikastan s net exports in 2015? (a) -\$200 (b) \$200 (c) \$1800 (d) Net exports cannot be calculated from the information given. 44. In the economy of Talikastan in 2015, consumption was 75% of GDP, government purchases were \$200, imports were \$50 and 125% of the value of exports, investment was one-sixth of the value of consumption. What was Talikastan s GDP in 2015? (a) \$218 (b) \$2500 (c) \$1520 (d) \$2100 ANSWER: c (challenging) 45. If in some year real GDP was \$5 trillion and the GDP deflator was 200, what was nominal GDP? (a) \$2.5 trillion. (b) \$10 trillion. (c) \$40 trillion. (d) \$100 trillion. 46. Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at \$20 per unit and 100 units of maple syrup are sold at \$8 per unit. In 2009, the base year, the price of cranberries was \$10 per unit and the price of maple syrup was \$15 per unit. For 2010, (a) nominal GDP is \$1800, real GDP is \$2000, and the GDP deflator is 90. (b) nominal GDP is \$1800, real GDP is \$2000, and the GDP deflator is (c) nominal GDP is \$2000, real GDP is \$1800, and the GDP deflator is 90. (d) nominal GDP is \$2000, real GDP is \$1800, and the GDP deflator is GDP is not a perfect measure of well-being; for example, (a) GDP excludes the value of volunteer work. (b) GDP does not address the distribution of income. (c) GDP does not address environmental quality. (d) All of the above are correct. 7

8 48. The steps involved in calculating the consumer price index and the inflation rate, in order, are as follows: (a) Choose a base year, update the basket, find the prices, estimate the basket s cost, compute the index, and compute the inflation rate. (b) Choose a base year, fix the basket, find the prices, compute the inflation rate, compute the basket s cost, and compute the index. (c) (d) The table below pertains to Studious, an economy in which the typical consumer s basket consists of 5 books and 10 calculators. For questions 52,53 and 54, refer to the table below. (c) Fix the basket, find the prices, compute the basket s cost, choose a base year and compute the index, and compute the inflation rate. (d) Fix the basket, find the prices, compute the inflation rate, compute the basket s cost, and choose a base year and compute the index. ANSWER: c (easy) 49. Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket s cost was \$50. In 2014, the basket s cost was \$52. And in 2016, the basket s cost was \$55. The value of the CPI in 2016 was (a) (b) (c) (d) For an imaginary economy, the value of the consumer price index was 140 in 2013 and in The economy s inflation rate for 2014 was (a) 4.6 percent. (b) 6.5 percent. (c) 4.4 percent. (d) 46.5 percent. 51. For an imaginary economy, the value of the consumer price index was 140 in 2013, and the inflation rate was 5.0 percent between 2013 and The consumer price index in 2014 was (a) (b) The cost of the basket in 2012 was (a) \$32. (b) \$200. (c) \$210. (d) \$ If 2012 is the base year, then the consumer price index was (a) 100 in 2012, in 2013, and in (b) 100 in 2012, in 2013, and in (c) 210 in 2012, 260 in 2013, and 280 in (d) 100 in 2012, 150 in 2013, and 170 in The inflation rate was (a) 24.3 percent in 2013 and 22.5 percent in (b) 23.8 percent in 2013 and 9.5 percent in (c) 23.8 percent in 2013 and 7.7 percent in (d) 24.3 percent in 2013 and 7.3 percent in When new goods are introduced, consumers have more variety from which to choose. As a result, each dollar is worth (a) more, and the cost of living increases. (b) more, and the cost of living decreases. (c) less, and the cost of living increases. (d) less, and the cost of living decreases. 8

9 56. If the quality of a good improves while its price remains the same, then the value of a dollar (a) rises and the cost of living increases. (b) rises and the cost of living decreases. (c) falls and the cost of living increases. (d) falls and the cost of living decreases. 57. The CPI was 96 in 1982, and the CPI was 230 in How much money would you have needed in 2012 in order to buy what you could have bought with \$500 in 1982? (a) \$ (b) \$1, (c) \$ (d) \$1, Indexation refers to (a) a process of adjusting the nominal interest rate so that it is equal to the real interest rate. (b) using a law or contract to automatically correct a dollar amount for the effects of inflation. (c) using a price index to deflate dollar values. (d) an adjustment made by the Bureau of Labor Statistics to the CPI so that the index is in line with the GDP deflator. ANSWER: b (easy) 59. Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate? (a) The real interest rate is the nominal interest rate times the rate of inflation. (b) The real interest rate is the nominal interest rate minus the rate of inflation. (c) The real interest rate is the nominal interest rate plus the rate of inflation. (d) The real interest rate is the nominal interest rate divided by the rate of inflation. ANSWER: b (easy) 60. If the nominal interest rate is 9 percent and the real interest rate is 3 percent, then the inflation rate is (a) -6 percent. (b) 3 percent. (c) 6 percent. (d) 12 percent. 9

### Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 11:00 Section 06 TYPE C

NAME: NO: SECTION: Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I 15.03.2016, Tuesday 11:00 Section 06 TYPE C Do not forget to write your full name,

More information

### Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 13:00 Section 03 TYPE B

NAME: NO: SECTION: Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I 15.03.2016, Tuesday 13:00 Section 03 TYPE B Do not forget to write your full name,

More information

### ECONOMICS 1BB3 Introductory Macroeconomics

Practice Test #1 ECONOMICS 1BB3 Introductory Macroeconomics Term Test #1 This examination paper includes 13 pages including the title page and 43 questions. You are responsible for ensuring that your copy

More information

### ECON 1001 A. Come to the PASS workshop with your mock exam complete. During the workshop you can work with other students to review your work.

It is most beneficial to you to write this mock midterm UNDER EXAM CONDITIONS. This means: Complete the midterm in 1.5 hour(s). Work on your own. Keep your notes and textbook closed. Attempt every question.

More information

### Exam 01 - ECON Friday, October 1st

Name: Exam 01 - ECON 2301-05 - Friday, October 1st Figure 1 1. Refer to Figure 1. This economy has the ability to produce at which point(s)? a. A, B, D b. A, B c. C, F, G d. A, B, C, F, G 2. Any point

More information

### Exam 01 - ECON Friday, October 1st

Name: ID: A Exam 01 - ECON 2301-05 - Friday, October 1st 1. Demand is said to be inelastic if the a. quantity demanded changes proportionately the same as price. b. quantity demanded changes proportionately

More information

### FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 DAY AND TIME YOUR SECTION MEETS:

FIRST MIDTERM EXAMINATION ECON 200 Spring 2007 STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: BEFORE YOU BEGIN PLEASE MAKE SURE THAT YOUR EXAMINATION HAS BEEN DUPLICATED

More information

### Multiple Choice questions /60 Problem 1 /20 Problem 2 /12 Problem 3 /8

Econ 200 Midterm 1 Spring 2011 March 29 2011 Instructions : 1-) The exam is 65 minutes 2-) You have to provide detailed solution to each problem 3-) Any form of cheating (Peeking to other s exam, use your

More information

### University of Toronto June 14, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1

Department of Economics Prof. Gustavo Indart University of Toronto June 14, 2007 SOLUTION ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 A LAST NAME FIRST NAME STUDENT NUMBER SECTION ( Morning or

More information

### Use the figure below to answer questions 1 and 2: D pounds of vegetables. A. 120 pounds of vegetables.

Use the figure below to answer questions 1 and 2: The figure shows the production possibilities curve for Hamid, who can produce two goods, meat and vegetables. 1. Refer to the figure above. What is the

More information

### Microeconomics PART A. More Tutorial at

Microeconomics PART A 1. For Italy, the opportunity cost incurred when 6 cheeses are produced is 8 watches. For Switzerland, the opportunity cost incurred when 10 cheeses are produced is 50 watches. Which

More information

### Economics 101 Midterm Exam #1. February 27, Instructions

Economics 101 Spring 2008 Professor Wallace Economics 101 Midterm Exam #1 February 27, 2008 Instructions Do not open the exam until you are instructed to begin. You will need a #2 lead pencil. If you do

More information

### Submit your scantron and questions sheet

PRINT YOUR NAME Exam 1 Submit your scantron and questions sheet Version A 1. Scarcity means that A) what we can produce with our resources is greater than our material wants B) resources are unlimited

More information

### Archimedean Upper Conservatory Economics, October 2016

Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The point on a business cycle when real gross domestic product stops rising and begins falling is a(n):

More information

### Microeconomics. More Tutorial at

Microeconomics 1. Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of \$8.00. What would be the firm s total revenue if it instead produced

More information

### EconS 102: Mid Term 1 Date: June 30th, 2017

EconS 102: Mid Term 1 Date: June 30th, 2017 Instructions Write your name and WSU ID on the paper. All questions are worth 1 point. You have 30 minutes. You must answer any 15/18 questions. If you answer

More information

### ECON 201: Introduction to Macroeconomics Professor Robert Gordon Midterm Exam 1: October 16, 2017

ECON 201: Introduction to Macroeconomics Professor Robert Gordon Midterm Exam 1: October 16, 2017 NAME Circle the TA session you attend: Bianchi Vimercati - 3PM Bianchi Vimercati - 4PM Montag - 3PM Montag

More information

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015 16 Spring Semester ECON101 Introduction to Economics I First Midterm Exam Duration: 90 minutes Answer Key

More information

### 2. If there is a minimum wage that is set below the equilibrium wage in the labor market, there will be:

Economics 101 Problem Set 3 Due: September 20, 2018 by 5 PM To receive credit for this problem set, you must submit your answers on-line at the class webpage. Neither hard copies nor e-mails will be accepted.

More information

### 1 Macroeconomics SAMPLE QUESTIONS

Sample Multiple-Choice Questions Circle the letter of each correct answer. 1. The crucial problem of economics is (A) establishing a fair tax system. (B) providing social goods and services. (C) developing

More information

### MIDTERM I. GROUP A Instructions: November 20, 2013

EC101 Sections 03 Fall 2013 NAME: ID #: SECTION: MIDTERM I November 20, 2013 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. The exam consists of 30 multiple

More information

### ECON 1010 Principles of Macroeconomics. Midterm Exam #1. Professor: David Aadland. Spring Semester February 14, 2017.

ECON 1010 Principles of Macroeconomics Midterm Exam #1 Professor: David Aadland Spring Semester 2017 February 14, 2017 Your Name Section 1: Multiple Choice and T/F (60 pts). Circle the correct answer;

More information

### UNIVERSITY OF TORONTO Faculty of Arts and Science. August Examinations 2007 ECO 100Y1 Y. Duration: 3 hours

UNIVERSITY OF TORONTO Faculty of Arts and Science August Examinations 2007 ECO 100Y1 Y Duration: 3 hours Examination Aids allowed: Non-programmable calculators only INSTRUCTIONS: Students are required

More information

### Econ Principles of Microeconomics - Assignment 1

Econ 2302 - Principles of Microeconomics - Assignment 1 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A likely effect of government policies that redistribute

More information

### University of Nevada-Reno College of Business-Department of Economics Ec 103: Principles of Macroeconomics; Fall 2003 Professor Federico Guerrero

University of Nevada-Reno College of Business-Department of Economics Ec 103: Principles of Macroeconomics; Fall 2003 Professor Federico Guerrero 1 st MIDTERM EXAM-Tuesday, September 30 th, 2003 There

More information

### Multiple Choice Identify the letter of the choice that best completes the statement or answers the question.

Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?

More information

### Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages.

Econ 101, Sections 3 and 4, S11, Schroeter Exam #1, Special code = 0002 Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages. 1. When a society

More information

### Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages.

Econ 101, Sections 3 and 4, S11, Schroeter Exam #1, Special code = 0001 Choose the single best answer for each question. Do all of your scratch-work in the side and bottom margins of pages. 1. When a society

More information

### MICROECONOMICS SECTION I. Time - 70 minutes 60 Questions

MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

More information

### Economics 1 Final Exam December 9, 2008

Name Test Form A Economics 1 Final Exam December 9, 2008 True-False Questions: Fill in Bubble A for True, Bubble B for False. 1. A profit-maximizing monopolist will sell more units of a good than the amount

More information

### Exam #1 Time: 1h 15m Date: 10 June Instructor: Brian B. Young. Multiple Choice. 2 points each

Economics 211 Macroeconomic Principles Exam #1 Time: 1h 15m Date: 10 June 2014 Name The value of this exam is 100 points. Instructor: Brian B. Young Please show your work where appropriate! Multiple Choice

More information

### Chapter. Demand and Supply CHAPTER IN PERSPECTIVE

Demand and Supply Chapter 4 CHAPTER IN PERSPECTIVE The tools of demand and supply explain how competitive markets work. We use the demand and supply tools to determine the quantities and prices of the

More information

### Exercise questions. ECON 102. Answer all questions. Multiple Choice Questions. Choose the best answer.

Exercise questions. ECON 102 Answer all questions. Multiple Choice Questions. Choose the best answer. 1.On Saturday morning, you rank your choices for activities in the following order: go to the library,

More information

### ECON 1000 Contemporary Economic Issues (Summer 2018) How a Market System Functions

ECON 1 Contemporary Economic Issues (Summer 218) How a Market System Functions Relevant Readings from the Required Textbooks: Chapter 4, Organizing Principles of Capitalist Systems Coda, I, Pencil Definitions

More information

### Supply & Demand Practice Honors Economics

Assigned: 2/16/15 Supply & Demand Practice Honors Economics B-Day: 1 20, due 2/18; 21 45, due 2/20 A-Day: All problems, 2/19/15 Due Dates Multiple Choice Identify the choice that best completes the statement

More information

### Microconomics. Chapter 2 Trade-offs, Comparative Advantage, and the Market System. 6 th edition

1 Microconomics 6 th edition Chapter 2 Trade-offs, Comparative Advantage, and the Market System Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 Production

More information

### FIRST HOURLY EXAMINATION ECON 200 Spring 2009 Version A DAY AND TIME YOUR SECTION MEETS:

FIRST HOURLY EXAMINATION ECON 200 Spring 2009 Version A STUDENT'S NAME: STUDENT'S IDENTIFICATION NUMBER: DAY AND TIME YOUR SECTION MEETS: ENTER THE NUMBER 1555777 UNDER "SPECIAL CODES" ON THE SCANTRON

More information

### Multiple Choice Part II, Q1 Part II, Q2 Part III Total

SIMON FRASER UNIVERSITY ECON 103 (2008-2) MIDTERM EXAM NAME Student # Tutorial # Multiple Choice Part II, Q1 Part II, Q2 Part III Total PART I. MULTIPLE CHOICE (56%, 1.5 points each). Answer on the bubble

More information

### ECO 100Y L0201 INTRODUCTION TO ECONOMICS. Midterm Test #1

epartment of Economics Prof. Gustavo Indart University of Toronto October 26, 2007 ECO 100Y L0201 INTROUCTION TO ECONOMICS SOLUTIONS Midterm Test #1 LAST NAME FIRST NAME INSTRUCTIONS: STUENT NUMBER 1.

More information

### Multiple choice questions 1-60 ( 1.5 points each)

NAME: STUDENT ID: Final Exam ECON 101, Section 2 summer 2004 Ying Gao Instructions Please read carefully! 1. Print your name and student ID number at the top of this cover sheet. 2. Check that your exam

More information

### Eastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester

Duration: 50 minutes Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester ECON101 - Introduction to Economics I Quiz 2 Answer Key 16 December

More information

### Individual & Market Demand and Supply

Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (3) Individual & Market Demand and Supply The tools of demand and supply can take us a far way in understanding both specific economic

More information

### Exam #1 Time: 1h 15m Date: February Instructor: Brian B. Young. Multiple Choice. 2 points each

Economics 211 Macroeconomic Principles Exam #1 Time: 1h 15m Date: 19 21 February 2013 Name The value of this exam is 100 points plus 10 points for the Bonus Question. Instructor: Brian B. Young Please

More information

### EXAMINATION 1 VERSION B "Competitive Supply and Demand" September 23, 2015

Signature: William M. Boal Printed name: EXAMINATION 1 VERSION B "Competitive Supply and Demand" September 23, 2015 INSTRUCTIONS: This exam is closed-book, closed-notes. Simple calculators are permitted,

More information

### Economics 101. Version 1

Economics 101 Spring 2018 February 27, 2018 Midterm 1 Name TA Name Discussion Section # Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

More information

### MIDTERM I. GROUP A Instructions: November 3, 2010

EC101 Sections 04 Fall 2010 NAME: ID #: SECTION: MIDTERM I November 3, 2010 GROUP A Instructions: You have 60 minutes to complete the exam. There will be no extensions. Students are not allowed to go out

More information

### Exam Spring. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.

Class: Date: Exam1 2014 Spring Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Ch.6 When a tax is imposed on the buyers of a good, the demand curve shifts

More information

### ECON 120 SAMPLE QUESTIONS

ECON 120 SAMPLE QUESTIONS 1) The price of cotton clothing falls. As a result, 1) A) the demand for cotton clothing decreases. B) the quantity demanded of cotton clothing increases. C) the demand for cotton

More information

### University of Toronto October 17, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1

Department of Economics Prof. Gustavo Indart University of Toronto October 17, 2008 SOLUTIONS ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 LAST NAME FIRST NAME STUDENT NUMBER INSTRUCTIONS: 1. The

More information

### Queen s University Department of Economics ECON 111*S

Queen s University epartment of Economics ECON 111*S Suggested Solutions to Take-Home Midterm Examination February 7, 2007 Instructor: Sharif F. Khan Page 1 of 9 Pages PART A TRUE/FALSE/UNCERTAIN QUESTIONS

More information

### CHARTERED INSTITUTE OF TAXATION ( T) (Institut Percukaian Malaysia) PROFESSIONAL EXAMINATIONS INTERMEDIATE LEVEL

CHARTERED INSTITUTE OF TAXATION (225750 T) (Institut Percukaian Malaysia) PROFESSIONAL EXAMINATIONS INTERMEDIATE LEVEL ECONOMICS JUNE 2018 Student Reg. No. Date Desk No. Examination Centre Time allowed:

More information

### ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG

ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER

More information

### Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2004

Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2004 Follow the instructions for each of the two parts of this examination. This exam

More information

### Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2004

Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2004 Follow the instructions for each of the two parts of this examination. This exam

More information

### Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2003

Economics 1012A Introduction to Macroeconomics Spring 2004 Dr. R. E. Mueller First Midterm Examination February 13, 2003 Follow the instructions for each of the two parts of this examination. This exam

More information

### C. many buyers and many sellers C. Sue will likely purchase more than one bottle of shampoo. B. cause the demand for mangos to shift to the right

Multiple Choice 1. Competitive markets are characterized as having A. many buyers and a single seller B. many buyers and a few sellers. C. many buyers and many sellers D. a few buyers and many sellers

More information

### Bremen School District 228 Social Studies Common Assessment 2: Midterm

Bremen School District 228 Social Studies Common Assessment 2: Midterm AP Microeconomics 55 Minutes 60 Questions Directions: Each of the questions or incomplete statements in this exam is followed by five

More information

### UMBC Department of Economics First Examination. (Please Print.)

UMBC Department of Economics First Examination Economics 102 Spring, 2017 Name: Professor Gindling (Please Print.) The exam consists of two parts. Part I contains 35 multiple choice questions. Circle the

More information

### The exam has a total of 50 questions (100 points). You will have 75 minutes to complete the exam. Good Luck!

Econ 111 Practice Midterm 1 The exam has a total of 50 questions (100 points). You will have 75 minutes to complete the exam. Good Luck! Print your Name Sign the honor Pledge affirming that you have neither

More information

### EC101 DD/EE Midterm 2 November 7, 2017 Version 01

EC101 DD/EE Midterm 2 November 7, 2017 Version 01 Name (last, first): Student ID: U Discussion Section: Signature EC101 DD/EE F17 Midterm 2 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

More information

### EC101 DD/EE Midterm 2 November 7, 2017 Version 04

EC101 DD/EE Midterm 2 November 7, 2017 Version 04 Name (last, first): Student ID: U Discussion Section: Signature EC101 DD/EE F17 Midterm 2 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:

More information

### ECON 1100 Global Economics (Section 07) Exam #2 Spring 2013 (Version B) Multiple Choice Questions ( 2. points each):

ECON 11 Global Economics (Section 7) Exam #2 Spring 213 (Version B) 1 Multiple Choice Questions ( 2 2 points each): 1. One of the principle functions of money is that it serves as a store of value. This

More information

### ECON 1100 Global Economics (Section 07) Exam #2 Spring 2013 (Version A) Multiple Choice Questions ( 2. points each):

ECON 11 Global Economics (Section 7) Exam #2 Spring 213 (Version A) 1 Multiple Choice Questions ( 2 2 points each): 1. One of the principle functions of money is that it serves as a store of value. This

More information

### 1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price

1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness

More information

### YOUR NAME (please print) Form 1. Directions

Assigned Seat YOUR NAME (please print) Form 1 Directions 1. There are 49 multiple choice questions. All answers should be recorded on both your exam and the scantron. Be sure to fill in your unique id

More information

### Chapter 4. Demand, Supply and Markets. These slides supplement the textbook, but should not replace reading the textbook

Chapter 4 Demand, Supply and Markets These slides supplement the textbook, but should not replace reading the textbook 1 What is a market? A group of buyers and sellers with the potential to trade 2 What

More information

### INTI COLLEGE MALAYSIA BUSINESS FOUNDATION PROGRAMME ECO 181: INTRODUCTORY ECONOMICS FINAL EXAMINATION: AUGUST 2003 SESSION

ECO 181 (F) / Page 1 of 15 INTI COLLEGE MALAYSIA BUSINESS FOUNDATION PROGRAMME ECO 181: INTRODUCTORY ECONOMICS FINAL EXAMINATION: AUGUST 2003 SESSION SECTION A There are SIXTY questions on this paper.

More information

### UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y. Duration: 3 hours

UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 100Y1 Y Duration: 3 hours Examination Aids allowed: Non-programmable calculators only INSTRUCTIONS: Students are required

More information

### NAME DATE CLASS. In the first column, answer the questions based on what you know before you study. After this lesson, complete the last column.

NAME DATE CLASS Lesson 1: Gross Domestic Product ESSENTIAL QUESTION Why and how do people make economic choices? GUIDING QUESTIONS 1. Why is Gross Domestic Product important to a nation? 2. Why is GDP

More information

### ECON 201: Introduction to Macroeconomics Professor Robert Gordon Midterm Exam 1: October 17, 2016

ECON 201: Introduction to Macroeconomics Professor Robert Gordon Midterm Exam 1: October 17, 2016 NAME Circle the TA session you attend: Bence - 3PM Bence - 4PM Cagri - 3PM Cagri - 4PM Chris - 3PM Chris

More information

More information

### After studying this chapter you will be able to

3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences

More information

### ANSWER KEY Multiple Choice. 3 marks each. Indicate your answers on the bubble sheet provided.

November 17, 2009 90 minutes No calculators, no aids allowed. Economics 103 Second Midterm Dr. J. Friesen ANSWER KEY Multiple Choice. 3 marks each. Indicate your answers on the bubble sheet provided. 1)

More information

### Microeconomics. More Tutorial at

Microeconomics Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. A legal maximum price at which a good can be sold is a price a. floor. b.

More information

### SUPPLY. Chapt er. Key Concepts. Markets and Prices

Chapt er 3 DEMAND AND SUPPLY Key Concepts Markets and Prices A competitive market is a market that has many buyers and sellers, so no single buyer or seller can influence the price. The money price of

More information

### Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST.

Economics 101 Name Fall 2012 TA Name 10/16/2012 Discussion Section # First Midterm Student ID # Version 1 DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SO. READ THESE INSTRUCTIONS FIRST. You

More information

### ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM INSTRUCTIONS

ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM Student s Name: Proctor s Name: Date: To the student: INSTRUCTIONS You have a maximum of 2 hours to complete the exam The exam is closed notes & book.

More information

### Econ103_Midterm (Fall 2016)

Econ103_Midterm (Fall 2016) Total 50 Points. Multiple Choice Identify the choice that best completes the statement or answers the question. 1 point for each question. Total 15 pts. c 1. Which of the following

More information

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) Consumers have the ability to buy everything

More information

### ECONOMICS REVIEW FINAL EXAM

ECONOMICS REVIEW FINAL EXAM UNIT 1 INTRO TO ECONOMICS FINAL EXAM REVIEW Unit 1 Economics is the study of how people satisfy their wants and needs when there are limited, or scarce, resources Microeconomics

More information

### CHAPTER 2. 4) Taxes cause: a) Market distortions b) Reduce incentives to work c) Decrease wealth creating transactions d) All of the above ANS: D

CHAPTER 2 1) When the market is in equilibrium, a) Total surplus is minimized b) Total surplus is maximized without government intervention c) Government maximizes total revenue 2) The difference between

More information

### Framingham State College Department of Economics and Business Principles of Microeconomics 1 st Midterm Practice Exam Fall 2006

Name Framingham State College Department of Economics and Business Principles of Microeconomics 1 st Midterm Practice Exam Fall 2006 This exam provides questions that are representative of those contained

More information

### ECON 1120 F2015 MAKEUP PRELIM 1 Answers

ECON 1120 F2015 MAKEUP PRELIM 1 Answers 1 E This is the only answer that involves making a judgment about the right thing to do. The other answers are all positive predictions that do not address the appropriateness

More information

### Name. I Short Answers (15 points).

Name_ Economics and Institutions: MGMT 7730 Test 1 - Sample You have 150 minutes to complete the exam. Make sure you answer the easier questions first before getting bogged down on the tougher ones. There

More information

### This exam contains 11 pages (including this cover page) and 17 questions. Check to see if any pages are missing.

ECON 001 Spring 2018 Final Exam May 8, 2018 Time Limit: 120 Minutes Name (Print): Recitation Section: Name of TA: This exam contains 11 pages (including this cover page) and 17 questions. Check to see

More information

### Econ Test 2B Dr. Rupp Tuesday, March 3, 2009 Pledge: I have neither given or received aid on this exam Signature

Econ 2113 - Test 2B Dr. Rupp Tuesday, March 3, 2009 Name Pledge: I have neither given or received aid on this exam Signature Multiple Choice Identify the letter of the choice that best completes the statement

More information

### EXAMINATION 2 VERSION B "Applications of Supply and Demand" October 12, 2016

William M. Boal Signature: Printed name: EXAMINATION 2 VERSION B "Applications of Supply and Demand" October 12, 2016 INSTRUCTIONS: This exam is closed-book, closed-notes. Simple calculators are permitted,

More information

### Practice exam for midterm 1, summer Chapters 1-7

Practice exam for midterm 1, summer 2015. Chapters 1-7 To answer the next 4 questions, suppose there is a small island economy with 20 Hawkeyes and 30 Buckeyes. Each Hawkeye is capable of producing either

More information

### ECON (ENT) COURSE LESSON THREE. Supply and Demand. CHAPTER 7 Supply and Demand. Lesson Three Supply and Demand 93

ECON (ENT) COURSE LESSON THREE Supply and Demand CHAPTER 7 Supply and Demand Lesson Three Supply and Demand 93 EXERCISES Matching (28 points) From the list below, select the term that matches each of the

More information

### Midterm 1 60 minutes Econ 1101: Principles of Microeconomics October 12, Exam Form A

Midterm 1 60 minutes Econ 1101: Principles of Microeconomics October 12, 2015 Exam Form A Name Student ID number Signature Teaching Assistant Section The answer form (the bubble sheet) and this question

More information

### Version #1. Midterm exam 2 November 18th, Student Name: ID# Discussion #

Econ 101-Fall 2008, Lecture 2 Professor Kelly Midterm exam 2 November 18th, 2008 Version #1 Student Name: ID# Discussion # You have 75 minutes to answer the exam. The exam contains 12 binary choice questions

More information

### Mechanism through which buyers (demanders) and sellers (suppliers) communicate to trade goods and services.

By the end of this learning plan, you will be able to: Use marginal (Cost-Benefit) analysis in decision-making Apply supply and demand analysis to price determination Assess the role price plays in a market

More information

### Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space at the bottom of page 6.

Econ 101, Section 21, S10, Schroeter Exam #1, Special code = 2 Choose the single best answer for each question. Do all of your scratch work in the margins or in the blank space at the bottom of page 6.

More information

### The Key Principles of Economics

Chapter Summary 2 The Key Principles of Economics This chapter covers five key principles of economics, the simple, self-evident truths that most people readily accept. If you understand these principles,

More information

### Chapter 2. Supply and Demand

Chapter 2 Supply and Demand Reading Assignment for the Week: Finish Chapter 2 Chapter 3 2-2 Copyright 2012 Pearson Addison-Wesley. All rights reserved. Topics 1. Demand. 2. Supply. 3. Market Equilibrium.

More information

### 5. The English word that comes from the Greek word for "one who manages a household" is a. market b. consumer c. producer d.

1. A worker in Equador can earn \$3 per day making cotton cloth on a hand loom. A worker in the United States can earn \$70 per day making cotton cloth with a mechanical loom. What accounts for the difference

More information

### ECO402_Final_Term_Solved_Quizzes By

ECO402_Final_Term_Solved_Quizzes By http://www.vustudents.net 1. The "perfect information" assumption of perfect competition includes all of the following except one. Which one? Consumers know their preferences.

More information

### The Hong Kong Management Association Lingnan University Joint Diploma in Management Studies

The Hong Kong Management Association Lingnan University Joint Diploma in Management Studies THE ECONOMIC ENVIRONMENT INSTRUCTIONS: 1. This examination paper consists of 5 pages (including this cover page).

More information

### ORGANIZING YOUR THOUGHTSII Use the diagram to help you take notes. Supply and prices are related. Indicate how they are related in the diagram.

Chapter 21, Section 1 For use with textbook pages 462 465 What Is Supply? KEY TERMS supply the various quantities of a good or service that producers are willing to sell at all possible market prices (page

More information

### CLEP Microeconomics Practice Test

Practice Test Time 90 Minutes 80 Questions For each of the questions below, choose the best answer from the choices given. 1. In economics, the opportunity cost of an item or entity is (A) the out-of-pocket

More information