Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

Exam 1A with Answer Key - Principles of Microeconomics | ECON 2020, Exams of Microeconomics

Auburn University (AU)Microeconomics
Prof. Richard A. Seals

Material Type: Exam; Professor: Seals; Class: PRINCIPLES OF MICROECONOMICS; Subject: Economics; University: Auburn University - Main Campus; Term: Spring 2011;

Typology: Exams

2010/2011
On special offer
30 Points
Discount

Limited-time offer

Uploaded on 05/03/2011

loganeleven6950
loganeleven6950 🇺🇸

4.6

(2)

3 documents

1 / 6

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Exam 1 Econ 2020-2 Fall 2010 Version A
1. Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of corn
to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is
a.
0.36 bushel of corn.
b.
2.8 bushels of corn.
c.
14 bushels of corn.
d.
70 bushels of corn.
ANS: B DIF: 2 REF: 3-2
2. Suppose a gardener produces both green beans and corn in her garden. If the opportunity cost of one bushel of
corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is
a.
3/5 bushel of corn.
b.
5/3 bushels of corn.
c.
3 bushels of corn.
d.
5 bushels of corn.
ANS: B DIF: 2 REF: 3-2
3. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4
tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost
of 1 chair is
a.
1/5 table for Mike and 1/3 table for Sandy.
b.
1/5 table for Mike and 3 tables for Sandy.
c.
5 tables for Mike and 1/3 table for Sandy.
d.
5 tables for Mike and 3 tables for Sandy.
ANS: A DIF: 2 REF: 3-2
4. The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the
quantities of inputs required by other producers to produce the same amount of that good,
a.
has a low opportunity cost of producing that good, relative to the opportunity costs of other
producers.
b.
has a comparative advantage in the production of that good.
c.
has an absolute advantage in the production of that good.
d.
should be the only producer of that good.
ANS: C DIF: 2 REF: 3-2
5. Suppose Susan can wash three windows per hour or she can iron six shirts per hour. Paul can wash two
windows per hour or he can iron five shirts per hour.
a.
Susan has an absolute advantage over Paul in washing windows.
b.
Susan has a comparative advantage over Paul in washing windows.
c.
Paul has a comparative advantage over Susan in ironing shirts.
d.
All of the above are correct.
ANS: D DIF: 2 REF: 3-2
pf3
pf4
pf5
Discount

On special offer

Partial preview of the text

Download Exam 1A with Answer Key - Principles of Microeconomics | ECON 2020 and more Exams Microeconomics in PDF only on Docsity!

  1. Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of corn to get 5 bushels of green beans, then her opportunity cost of 1 bushel of green beans is a. 0.36 bushel of corn. b. 2.8 bushels of corn. c. 14 bushels of corn. d. 70 bushels of corn.

ANS: B DIF: 2 REF: 3 - 2

  1. Suppose a gardener produces both green beans and corn in her garden. If the opportunity cost of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is a. 3/5 bushel of corn. b. 5/3 bushels of corn. c. 3 bushels of corn. d. 5 bushels of corn.

ANS: B DIF: 2 REF: 3 - 2

  1. Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we know that the opportunity cost of 1 chair is a. 1/5 table for Mike and 1/3 table for Sandy. b. 1/5 table for Mike and 3 tables for Sandy. c. 5 tables for Mike and 1/3 table for Sandy. d. 5 tables for Mike and 3 tables for Sandy.

ANS: A DIF: 2 REF: 3-

  1. The producer that requires a smaller quantity of inputs to produce a certain amount of a good, relative to the quantities of inputs required by other producers to produce the same amount of that good, a. has a low opportunity cost of producing that good, relative to the opportunity costs of other producers. b. has a comparative advantage in the production of that good. c. has an absolute advantage in the production of that good. d. should be the only producer of that good.

ANS: C DIF: 2 REF: 3-

  1. Suppose Susan can wash three windows per hour or she can iron six shirts per hour. Paul can wash two windows per hour or he can iron five shirts per hour. a. Susan has an absolute advantage over Paul in washing windows. b. Susan has a comparative advantage over Paul in washing windows. c. Paul has a comparative advantage over Susan in ironing shirts. d. All of the above are correct.

ANS: D DIF: 2 REF: 3-

  1. Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible? a. Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals. b. Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals. c. Kelly has a comparative advantage in repairing cars and in cooking meals. d. David has an absolute advantage in repairing cars and in cooking meals.

ANS: C DIF: 2 REF: 3-

Table 2- Production Possibilities for Toyland

Dolls Fire Trucks 400 0 300 200 200 350 100 450 0 500

  1. Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 200 to 300? a. 100 fire trucks b. 150 fire trucks c. 200 fire trucks d. 350 fire trucks

ANS: B DIF: 2 REF: 2 - 1

  1. Refer to Table 2-1. Which of the following statements is correct? a. The opportunity cost of an additional 100 dolls is constant at 50 fire trucks. b. The opportunity cost of an additional 100 dolls is constant at 100 fire trucks. c. Toyland’s production possibilities frontier is a straight, downward-sloping line. d. The opportunity cost of an additional 100 dolls increases as more dolls are produced.

ANS: D DIF: 2 REF: 2-

  1. Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.

ANS: A DIF: 3 REF: 3-

  1. If labor in Mexico is less productive than labor in the United States in all areas of production, a. then neither nation can benefit from trade. b. then Mexico can benefit from trade but the United States cannot. c. then the United States will have a comparative advantage relative to Mexico in the production of all goods. d. then both Mexico and the United States still can benefit from trade.

ANS: D DIF: 2 REF: 3-

  1. Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen. If these two countries decide to trade, a. Belarus should export linen to Russia. b. Russia should export linen to Belarus. c. trading linen would provide no net advantage to either country. d. Without additional information about opportunity costs, this question cannot be answered.

ANS: A DIF: 2 REF: 3-

  1. The quantity demanded of a good is the amount that buyers a. are willing to purchase. b. are willing and able to purchase. c. are willing and able and need to purchase. d. are able to purchase.

ANS: B DIF: 1 REF: 4 - 2

Figure 3-

Peru’s Production Possibilities Frontier

  1. Refer to Figure 3-2. The fact that the line slopes downward reflects the fact that a. for Peru, it is more costly to produce emeralds than it is to produce rubies. b. Peru will produce more emeralds and fewer rubies as time goes by. c. Peru faces a tradeoff between producing emeralds and producing rubies. d. Peru should specialize in producing rubies.

ANS: C DIF: 2 REF: 3-

  1. The market demand curve a. is found by vertically adding the individual demand curves. b. slopes upward. c. represents the sum of the prices that all the buyers are willing to pay for a given quantity of the good. d. represents the sum of the quantities demanded by all the buyers at each price of the good.

ANS: D DIF: 2 REF: 4 - 2

  1. An increase in demand is represented by a. a movement downward and to the right along a demand curve. b. a movement upward and to the left along a demand curve. c. a rightward shift of a demand curve. d. a leftward shift of a demand curve.

ANS: C DIF: 2 REF: 4 - 2

  1. An increase in quantity demanded a. results in a movement downward and to the right along a fixed demand curve. b. results in a movement upward and to the left along a fixed demand curve. c. shifts the demand curve to the left. d. shifts the demand curve to the right.

ANS: A DIF: 2 REF: 4 - 2

1 2 3 4 5 6 7 8 emeralds

40

80

120

160

200

240

280

320

360

400 rubies