ECON 200 UOFA EXAM 1 -
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Alicia and Christine are doctors at a hospital and can
each perform two tasks: open-heart surgery and liver transplants.
Alicia is more efficient than Christine at both of these two tasks,
but Alicia has a lower opportunity cost in performing liver
transplants. Identify the actions that lead to the hospital seeing
more patients. - Christine and Alicia get equal time doing heart
surgery and equal time doing liver transplants. - Christine spends
most of her time doing heart surgeries. - Because Alicia is more
efficient at both types of surgery, the hospital has Christine do
administrative tasks. - Christine spends most of her time doing
liver transplants. - Alicia spends most of her time doing liver
transplants.
Answer:
correct: - Christine spends most of her time doing heart surgeries. -
Christine spends most of her time doing liver transplants. incorrect: -
Christine and Alicia get equal time doing heart surgery and equal time
doing liver transplants. - Because Alicia is more efficient at both types of
surgery, the hospital has Christine do administrative tasks. - Alicia
spends most of her time doing liver transplants.
Question 2: Which of the items listed fit the definition of a market?
a swap meet - a hair salon - a shopping mall - a restaurant - eBay
Answer:
market: - a swap meet - a shopping mall - eBay not a market: - a hair
salon - a restaurant
,Question 3: In a 1953 speech, President Dwight Eisenhower listed
some things that cost about as much as "one modern heavy-duty
bomber": a modern urban school, a couple of power plants or
hospitals, or 50 miles of highway. What points was he trying to
make? -Military spending is a poor use of money. - A bomber is
worth more than a power plant or hospital. - The U.S. government
has only so much money. - Using scarce resources involves
trade-offs.
Answer:
correct: - Using scarce resources involves trade-offs. - The U.S.
government has only so much money. incorrect: -Military spending is a
poor use of money. - A bomber is worth more than a power plant or
hospital.
Question 4: Place the events in order to describe the unintended
consequences of a government-created incentive. - Some bred
cobras escape. - The area has more free cobras than before. - A
certain area has a problem with cobras, which are poisonous. -
People begin breeding cobras to turn in, which is easier than
hunting them. - The government announces a reward for every
captured cobra turned in.
Answer:
1. A certain area has a problem with cobras, which are poisonous. 2.
The government announces a reward for every captured cobra turned in.
3. People begin breeding cobras to turn in, which is easier than hunting
them. 4. Some bred cobras escape. 5. The area has more free cobras
than before
Question 5: Fill in the blanks to complete the passage about
intellectual property. The slogan "Information wants to be free" is
sometimes used to justify unrestricted _____ of copyrighted
materials, such as music. The _____ this practice is that depriving
, musicians of revenue from the sale of their work _____ an incentive
for them to be creative, which means a _____ supply of music for
everyone. selling sharing greater takes away advantage of reduced
provides problem with
Answer:
The slogan "Information wants to be free" is sometimes used to justify
unrestricted SHARING of copyrighted materials, such as music. The
PROBLEM WITH this practice is that depriving musicians of revenue
from the sale of their work TAKES AWAY an incentive for them to be
creative, which means a REDUCED supply of music for everyone.
Question 6: Which items are among the five foundations of
economics? - conditions of scarcity - the principle that trade
creates value - marginal thinking - the universal desire for -
opportunity cost
Answer:
correct: - the principle that trade creates value - marginal thinking -
opportunity cost incorrect: - the universal desire for - conditions of
scarcity
Question 7: Iowa's soil and climate are better suited for growing
corn than for growing cotton, while in Texas the opposite is true.
Complete the passage about the situation each state is in. Iowa has
a_____ in producing corn. We would expect Texas to produce_____
and trade it for _____. If these states do not trade, cotton and corn
production will be _____ than if the states did trade. specialization
higher cotton comparative advantage lower corn
Answer:
Iowa has a COMPARATIVE ADVANTAGE in producing corn. We would
expect Texas to COTTON and trade it for CORN. If these states do not
trade, cotton and corn production will be LOWER than if the states did
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR JUST RELEASED
Question 1: Alicia and Christine are doctors at a hospital and can
each perform two tasks: open-heart surgery and liver transplants.
Alicia is more efficient than Christine at both of these two tasks,
but Alicia has a lower opportunity cost in performing liver
transplants. Identify the actions that lead to the hospital seeing
more patients. - Christine and Alicia get equal time doing heart
surgery and equal time doing liver transplants. - Christine spends
most of her time doing heart surgeries. - Because Alicia is more
efficient at both types of surgery, the hospital has Christine do
administrative tasks. - Christine spends most of her time doing
liver transplants. - Alicia spends most of her time doing liver
transplants.
Answer:
correct: - Christine spends most of her time doing heart surgeries. -
Christine spends most of her time doing liver transplants. incorrect: -
Christine and Alicia get equal time doing heart surgery and equal time
doing liver transplants. - Because Alicia is more efficient at both types of
surgery, the hospital has Christine do administrative tasks. - Alicia
spends most of her time doing liver transplants.
Question 2: Which of the items listed fit the definition of a market?
a swap meet - a hair salon - a shopping mall - a restaurant - eBay
Answer:
market: - a swap meet - a shopping mall - eBay not a market: - a hair
salon - a restaurant
,Question 3: In a 1953 speech, President Dwight Eisenhower listed
some things that cost about as much as "one modern heavy-duty
bomber": a modern urban school, a couple of power plants or
hospitals, or 50 miles of highway. What points was he trying to
make? -Military spending is a poor use of money. - A bomber is
worth more than a power plant or hospital. - The U.S. government
has only so much money. - Using scarce resources involves
trade-offs.
Answer:
correct: - Using scarce resources involves trade-offs. - The U.S.
government has only so much money. incorrect: -Military spending is a
poor use of money. - A bomber is worth more than a power plant or
hospital.
Question 4: Place the events in order to describe the unintended
consequences of a government-created incentive. - Some bred
cobras escape. - The area has more free cobras than before. - A
certain area has a problem with cobras, which are poisonous. -
People begin breeding cobras to turn in, which is easier than
hunting them. - The government announces a reward for every
captured cobra turned in.
Answer:
1. A certain area has a problem with cobras, which are poisonous. 2.
The government announces a reward for every captured cobra turned in.
3. People begin breeding cobras to turn in, which is easier than hunting
them. 4. Some bred cobras escape. 5. The area has more free cobras
than before
Question 5: Fill in the blanks to complete the passage about
intellectual property. The slogan "Information wants to be free" is
sometimes used to justify unrestricted _____ of copyrighted
materials, such as music. The _____ this practice is that depriving
, musicians of revenue from the sale of their work _____ an incentive
for them to be creative, which means a _____ supply of music for
everyone. selling sharing greater takes away advantage of reduced
provides problem with
Answer:
The slogan "Information wants to be free" is sometimes used to justify
unrestricted SHARING of copyrighted materials, such as music. The
PROBLEM WITH this practice is that depriving musicians of revenue
from the sale of their work TAKES AWAY an incentive for them to be
creative, which means a REDUCED supply of music for everyone.
Question 6: Which items are among the five foundations of
economics? - conditions of scarcity - the principle that trade
creates value - marginal thinking - the universal desire for -
opportunity cost
Answer:
correct: - the principle that trade creates value - marginal thinking -
opportunity cost incorrect: - the universal desire for - conditions of
scarcity
Question 7: Iowa's soil and climate are better suited for growing
corn than for growing cotton, while in Texas the opposite is true.
Complete the passage about the situation each state is in. Iowa has
a_____ in producing corn. We would expect Texas to produce_____
and trade it for _____. If these states do not trade, cotton and corn
production will be _____ than if the states did trade. specialization
higher cotton comparative advantage lower corn
Answer:
Iowa has a COMPARATIVE ADVANTAGE in producing corn. We would
expect Texas to COTTON and trade it for CORN. If these states do not
trade, cotton and corn production will be LOWER than if the states did
