Economics Exam
ECONOMICS FINAL EXAM
➢ TEST 1
1. Which of the following topics typifies microeconomics as opposed to macroeconomics?
An individual's decision about which goods to buy with his or her income.
2. If the number of workers unemployed in an economy decreases, then the economy moves from a point inside its PPF to a point closer to its PPF.
3. An economy is said to be efficient if it is not possible to produce more of one good without producing less of another.
4. Technological progress tend to cause the production possibility frontier to shift ________. The expansion of capital resources tends to cause the production possibility frontier to shift ________. outward; outward.
Refer to the following diagram to answer questions #5, #6 and #7.
[pic]
5. Suppose the economy is producing at point B. Which of the following statements would best explain this situation?
Some of the economy's factors of production are going unused.
6. If the above economy moves from point A to point D, the opportunity cost of one additional toothbrush over that range is
2/3 toasters for each toothbrush.
7. Along the bowed out PPF shown above, the opportunity cost of producing an additional toothbrush is higher at point D than point A, because the opportunity cost of producing an additional toothbrush increases as more toothbrushes are produced.
Refer to the following diagram to answer questions #8, and #9.
[pic]
8. If the price is currently $12, buyers wish to purchase less than sellers wish to sell, and the price will eventually fall.
9. At a price of $8, there would be a ______, which would exert _______ pressure on the price. shortage of 20 units; upward
10. According to the law of supply, when the price of a good falls, the quantity supplied of the good falls.
11. Which of the following would NOT shift the supply curve for apples?
An increase in the average income of apple consumers.
➢ TEST 1
1. Which of the following topics typifies microeconomics as opposed to macroeconomics?
An individual's decision about which goods to buy with his or her income.
2. If the number of workers unemployed in an economy decreases, then the economy moves from a point inside its PPF to a point closer to its PPF.
3. An economy is said to be efficient if it is not possible to produce more of one good without producing less of another.
4. Technological progress tend to cause the production possibility frontier to shift ________. The expansion of capital resources tends to cause the production possibility frontier to shift ________. outward; outward.
Refer to the following diagram to answer questions #5, #6 and #7.
[pic]
5. Suppose the economy is producing at point B. Which of the following statements would best explain this situation?
Some of the economy's factors of production are going unused.
6. If the above economy moves from point A to point D, the opportunity cost of one additional toothbrush over that range is
2/3 toasters for each toothbrush.
7. Along the bowed out PPF shown above, the opportunity cost of producing an additional toothbrush is higher at point D than point A, because the opportunity cost of producing an additional toothbrush increases as more toothbrushes are produced.
Refer to the following diagram to answer questions #8, and #9.
[pic]
8. If the price is currently $12, buyers wish to purchase less than sellers wish to sell, and the price will eventually fall.
9. At a price of $8, there would be a ______, which would exert _______ pressure on the price. shortage of 20 units; upward
10. According to the law of supply, when the price of a good falls, the quantity supplied of the good falls.
11. Which of the following would NOT shift the supply curve for apples?
An increase in the average income of apple consumers.