STUDENT ID: 6201495
Midterm Exam #1
ECON 101, Section 2 summer 2004 Ying Gao Instructions – Please read carefully! 1. 2. 3. 4. Print your name and student ID number at the top of this cover sheet. Check that your exam contains 50 multiple choice questions
For the multiple choice section, carefully and clearly circle the correct answer on this exam (we will not use separate answer sheets this time.) You will have one hour to complete the exam. time - pace yourself wisely. You are responsible for keeping track of the
Multiple choice questions 1-50
1.Economics is ( b ) a. the study of the markets for stocks and bonds b. the study of choice under conditions of scarcity c. exclusively the study of business firms d. fundamentally the same as sociology e. applicable only when scarcity is not a problem 2.People and organizations have to make choices about how to allocate time and money because of ( c) a. government rules and regulations b. corporate control of our lives c. scarcity of time and money d. religious values e. unlimited resources 3.Under capitalism, individuals are forced to make choices due to ( a. scarce time, but not scarce spending power d)
b. c. d. e.
scarce spending power, but not scarce time neither scarce time nor scarce spending power both scarce time and scarce spending power a low material standard of living
4.Land, labor, and money are the three categories of economic resources.( b ) a. True b. False 5.Due to a scarcity of resources, (d ) a. every society must undertake central planning b. the government must decide how to allocate available resources c. some members of each society must live in poverty d. every society must choose among competing uses of available resources e. resource availability exceeds the possible uses for available resources 6. In every economic system, scarcity imposes limitations on ( a ) a. households, business firms, governments, and the nation as a whole b. households and business firms, but not the governments c. local and state governments, but not the federal government d. households and governments, but not business firms e. business firms, governments, and the nation as a whole 7. The three groups of decision makers in the economy are ( b ) a. households, business firms, and banks b. households, business firms, and governments c. business firms, governments, and banks d. business firms, banks, and foreign traders e. households, governments, and banks 8. Macroeconomics focuses on the behavior of economic agents such as the consumer, a business firm, or a specific market. ( b ) a. True b. False 9.Microeconomic topics include the overall unemployment rate in the United States and the rate of inflation. ( b ) a. True b. False 10.Microeconomics deals with which of the following? ( c ) a. the total output of an economy b. the measurement of a nation's inflation rate c. how producers and consumers interact in individual markets d. how tax policies influence economic growth e. whether wage growth will outpace inflation in the coming year 11.Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue? ( a ) a. "Central Bank Raises Interest Rates" b. "Auto Dealership to Cut Prices"
c. d. e.
"Fanny's Freeze Dried Prunes to Lay Off 50 Workers" "United Workers Union to Strike April 15" "Brazilian Coffee Bean Crop Falls by 10 Percent"
12.Which of the following would be strictly a microeconomic topic? ( e ) a. a general rise in interest rates b. a drop in inflation c. an increase in total production in the United States d. a drop in the nation's unemployment rate e. an increase in the price of the Ford Taurus 13.If the president of Chile commented that "the crime rate in Chile is currently too high," this would be an example of a normative statement. ( a ) a. True b. False 14.Economists tend to disagree primarily over positive...
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