Fall 2025
ECON UA 2: Midterm 1, Version A
New York University
General Instructions: Print your name, recitation section, and NETID clearly on
the bubble sheet. Read each exercise carefully. Fill in the circle for the correct answer
on the bubble sheet clearly. Ambiguous answers will be marked as incorrect. Scratch
paper is not allowed under any circumstances. All your work must be done in these
pages.
• You have up to 75 minutes to complete the exam.
• There are 30 questions in all.
• Calculator are allowed.
• Suspicion of cheating, sharing calculators or using any unfair means of aid is
enough to get your test withdrawn.
• When you are done, turn in your bubble sheet. Failure to do so will result in
an automatic failing grade.
Explanations are at end
, Questions
1. Suppose U.S. agricultural land is used either to raise cotton for clothing or to
grow wheat. Curve FG in Fig. 2 represents the current production possibilities
frontier for cotton and wheat. What could cause the production possibilities
frontier to shift from FG to IH?
A. an increase in the number of workers in wheat production only
B. a reallocation of current resources to produce more wheat
C. a new fertilizer that improves cotton production more than wheat pro-
duction
D. a new fertilizer that equally improves cotton and wheat production
E. newly reclaimed swampland that can be used to grow either crop, but
is much better suited to growing wheat
2. George received free tickets to see a movie. However, parking at the movie
theater costs $14 and he would have to take three hours off from work. He earns
$29 per hour. What is George’s opportunity cost of seeing the movie?
A. $14
B. $43
C. $87
D. $101
E. $116
, 3. Ahanu divides his time studying physics and economics. Fig. 1 shows the grade
combinations that he can obtain. In Fig. 1, moving from a grade of 80 to 90 in
economics
A. has a lower opportunity cost than moving from a 60 to 80 in economics
B. has a higher opportunity cost than moving from a 60 to a 80 in eco-
nomics
C. has a higher opportunity cost than moving from a 90 to a 100 in
economics
D. has a higher opportunity cost than moving from a 60 to 100 in eco-
nomics
E. has no opportunity cost
Page 2
ECON UA 2: Midterm 1, Version A
New York University
General Instructions: Print your name, recitation section, and NETID clearly on
the bubble sheet. Read each exercise carefully. Fill in the circle for the correct answer
on the bubble sheet clearly. Ambiguous answers will be marked as incorrect. Scratch
paper is not allowed under any circumstances. All your work must be done in these
pages.
• You have up to 75 minutes to complete the exam.
• There are 30 questions in all.
• Calculator are allowed.
• Suspicion of cheating, sharing calculators or using any unfair means of aid is
enough to get your test withdrawn.
• When you are done, turn in your bubble sheet. Failure to do so will result in
an automatic failing grade.
Explanations are at end
, Questions
1. Suppose U.S. agricultural land is used either to raise cotton for clothing or to
grow wheat. Curve FG in Fig. 2 represents the current production possibilities
frontier for cotton and wheat. What could cause the production possibilities
frontier to shift from FG to IH?
A. an increase in the number of workers in wheat production only
B. a reallocation of current resources to produce more wheat
C. a new fertilizer that improves cotton production more than wheat pro-
duction
D. a new fertilizer that equally improves cotton and wheat production
E. newly reclaimed swampland that can be used to grow either crop, but
is much better suited to growing wheat
2. George received free tickets to see a movie. However, parking at the movie
theater costs $14 and he would have to take three hours off from work. He earns
$29 per hour. What is George’s opportunity cost of seeing the movie?
A. $14
B. $43
C. $87
D. $101
E. $116
, 3. Ahanu divides his time studying physics and economics. Fig. 1 shows the grade
combinations that he can obtain. In Fig. 1, moving from a grade of 80 to 90 in
economics
A. has a lower opportunity cost than moving from a 60 to 80 in economics
B. has a higher opportunity cost than moving from a 60 to a 80 in eco-
nomics
C. has a higher opportunity cost than moving from a 90 to a 100 in
economics
D. has a higher opportunity cost than moving from a 60 to 100 in eco-
nomics
E. has no opportunity cost
Page 2
