sampleexam1.notethereare8moremultiplechoice.docVIP

Sample Exam 1. Note there are 8 more multiple choice questions than will appear on a live exam. 1) Microeconomics studies the allocation of A) decision makers. B) scarce resources. C) models. D) unlimited resources. 2) The Oregon Health Care Plan is an example of how policy makers cope with A) scarcity of medical treatment. B) scarcity of patients. C) scarcity of policy makers. D) answering the question of how to produce. 3) “Anything worth doing is worth doing well,” ignores which of the following? concern with quality opportunity cost marginal utility both “b” and “c” 4) The purpose of making assumptions in economic model building is to A) force the model to yield the correct answer. B) minimize the amount of work an economist must do. C) simplify the model while keeping important details. D) express the relationship mathematically 5) Which of the following is an example of a positive statement? A) Since this good is bad for you, you should not consume it. B) If this good is bad for you, you should not consume it. C) If you consume this good, you will get sick. D) None of the above. 6) According to the Law of Demand, the demand curve for a good will A) shift leftward when the price of the good increases. B) shift rightward when the price of the good increases. C) slope downward. D) slope upward. 7) If the price of automobiles were to decrease substantially, the demand curve for public transportation would most likely A) shift rightward. B) shift leftward. C) remain unchanged. D) remain unchanged while quantity demanded would change. 8) If the demand for oranges is written as Q = 100 - 5p, then the inverse demand function is A) Q = 5p - 100. B) Q = 20 - .2p. C) p = 20 - 5Q. D) p = 20 - .2Q. 9) Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a(n) A) vertical line where Q = 10. B) vertical line where Q = 100. C) verti