SAMPLE FIRST EXAM
ECON 206 NAME______________________
PART I. MULTIPLE CHOICE. (2 points each)
1. Opportunity cost may be defined as the:
a. goods or services that are forgone in order to
obtain something else.
b. Dollar prices paid for final goods and services.
c. Dollar cost of producing a particular product.
d. Both a and c.
2. Which of the following is an assumption under which the
production possibilities curve is drawn?
a. There is significant unemployment.
b. The amounts of factors of production available
are fixed.
c. The price level is changing.
d. Technology is changing.
3. Which of the following events would cause the production
possibilities curve to shift outward?
a. A labor strike.
b. Improvement in technology.
c. The full employment of resources.
d. A decrease in available resources.
4. Tennis rackets and tennis balls are commonly used together.
A decrease in the price of tennis rackets will result in:
a. An increase in the demand for tennis balls.
b. A decrease in the demand for tennis balls.
c. A decrease in the demand for tennis rackets.
d. None of the above.
