Review for Midterm I

1634 WordsJun 13, 20137 Pages
California State University –Fullerton Econ 201- Review for Midterm I Dr. El Hag- Spring 2010 Multiple Choice Identify the choice that best completes the statement or answers the question. ____1.The slope of a line that passes through the points (10, 15) and (20, 7) is a. | -5/4. | b. | -4/5. | c. | 4/5. | d. | 5/4. | ____2.If Shawn can produce more donuts in one day than Sue can produce in one day, then a. | Shawn has a comparative advantage in the production of donuts. | b. | Sue has a comparative advantage in the production of donuts. | c. | Shawn has an absolute advantage in the production of donuts. | d. | Sue has an absolute advantage in the…show more content…
If Puneet must work 0.5 hour to make each purse, then his production possibilities frontier is based on how many hours of work? a. | 2 hours | b. | 5 hours | c. | 20 hours | d. | 50 hours | Table 4-1 Price | Aaron’s Quantity Demanded | Angela’s Quantity Demanded | Austin’s Quantity Demanded | Alyssa’s Quantity Demanded | $0.00 | 20 | 16 | 4 | 8 | $0.50 | 18 | 12 | 6 | 6 | $1.00 | 14 | 10 | 2 | 5 | $1.50 | 12 | 8 | 0 | 4 | $2.00 | 6 | 6 | 0 | 2 | $2.50 | 0 | 4 | 0 | 0 | ____11.Refer to Table 4-1. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded a. | decreases by 1.75 units. | b. | increases by 2 units. | c. | decreases by 7 units. | d. | decreases by 24 units. | ____12.What will happen in the rice market now if buyers expect higher rice prices in the near future? a. | The demand for rice will increase. | b. | The demand for rice will decrease. | c. | The demand for rice will be unaffected. | d. | The supply of rice will increase. | ____13.If the price of a good is low, a. | firms would increase profit by increasing output. | b. | the quantity supplied of the good could
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