23-24 Fall 102 Exam 1A

DiIanni 102 - Exam 1 - Fall 2023 THIS IS TEST FORM A After you have completed this exam you will submit only your scant ron form. You may keep this exam booklet for studying purposes. Prepare to show your ID when you submit your scantron form. Enter all of the following information on your scantron form using a No. 2 pencil. If any of this in for ma tion is miss ing, four (4) per cent age points will be de ducted from your score. COURSE: ECON 102 INSTRUCTOR: DiIanni SECTION: [your numerical section code from the right column in the table below] STUDENT SIGNATURE: [sign on the line] YOUR LAST NAME: [your surname / family name] FIRST NAME INI: [the first letter of your first name / given name] NETWORK ID: [your netID, the first part of your email] STUDENT NUMBER: [your UIN] SECTION: [your numerical section code from the right column in the table below] TEST FORM: A Enter all answers on Side 2 of your scantron form. TA Name Section Meeting Time Meeting Location SECTION CODE FOR EXAMS Ronald Cueva Chavez AD0 8am 215 DKH 111 AD1 9am 215 DKH 112 Shivangi Ambardar AD4 12pm 215 DKH 221 AD5 1pm 215 DKH 222 Yuqing Han ADA 8am 215B DKH 331 ADB 9am 215B DKH 332 AD2 10am 215 DKH 333 AD3 11am 215 DKH 334 Chenxi Tang AD6 2pm 215 DKH 441 AD7 3pm 215 DKH 442 AD8 4pm 215 DKH 443 AD9 5pm 215 DKH 444 Sanghee Mun ADC 10am 215B DKH 551 ADD 11am 215B DKH 552 Zichang Liu ADE 12pm 215B DKH 661 ADF 1pm 215B DKH 662 ADG 2pm 215B DKH 663 ADH 3pm 215B DKH 664 See the last page of the exam for more exam policies.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When studying individuals' economic behavior, economists assume that 1) A) individuals act as if they were rational. B) only educated people act as if they were rational. C) individuals understand the rationale for all their actions. D) self - interest is of limited relevance in predicting an individual's actions. 2) Central planning is a key characteristic of which economic system? 2) A) Price system B) Mixed economic system C) Free market economy D) Command economy 3) The mercantilists promoted the idea that a "public interest" existed separately from individual people. Which of the following ideas does this contradict? 3) A) Unlimited desires B) Scarcity C) Rational choice D) Methodological individualism 4) Which of the following was NOT a mercantilist idea? 4) A) The price of a good is determined by its marginal utility B) Money constitutes real wealth for a nation C) Exchange is a zero - sum game D) A "public interest" exists separately from actual individuals Refer to the information provided in Figure 6.9 below to answer the questions that follow. Figure 6.9 5) Refer to Figure 6.9. The ________ video game rental has a marginal utility of zero. 5) A) first B) second C) third D) fourth 6) The value of the best alternative sacrificed to obtain something you want is referred to as 6) A) opportunity cost. B) explicit cost. C) marginal cost. D) sunk cost. 1

15) The market clearing price occurs at the point at which 15) A) the demand curve intersects the vertical axis. B) the supply curve intersects the horizontal axis. C) there is a shortage of the desired good. D) quantity demanded equals quantity supplied. 16) The theory of derived demand implies that: 16) A) The value of car tires is derived from the value of the rubber used to produce them B) The value of each good is intrinsic, not subjective C) The value of money is in the goods it can be used to purchase, not its face value D) The value of wood is derived from the value of the products it can be used to make Refer to the information provided in Figure 6.9 below to answer the questions that follow. Figure 6.9 17) Refer to Figure 6.9. The marginal utility of the second video game rental is 17) A) 8. B) 10. C) 25. D) 40. 18) The real value of money: 18) A) is another word for the face value. B) matters less to people than its nominal value. C) reflects the purchasing power of money. D) is the same as its nominal value. 3

Refer to the information provided in Table 6.1 below to answer the questions that follow. Table 6.1 Number of Hamburgers per Day Total Utility Marginal Utility 1 30 2 52 3 67 4 76 5 4 Number of Sodas per Day Total Utility Marginal Utility 1 20 2 35 3 47 4 57 5 7 19) Refer to Table 6.1. The marginal utility of the second hamburger per day is 19) A) 10. B) 15. C) 22. D) 52. 20) The theory that the price of a good is determined by its cost of production is called: 20) A) The marginal theory of value B) The productivity theory of value C) The labor theory of value D) The subjective theory of price 21) The face value of money or income is called its ________ value. 21) A) real B) external C) marginal D) nominal 22) The diamond/water paradox states that things with the ________ value in use frequently have ________ value in exchange. 22) A) greatest; little or no B) greatest; the greatest C) least; little or no D) least; the least 23) Human beings 23) A) know what their needs are, but do not know what their wants are. B) have limited wants, but unlimited needs. C) think they have unlimited wants, but really have limited needs. D) have unlimited wants. 24) What is the Test Form letter shown on the front page of this exam? (Enter the letter here, and make sure you also enter it on the front page of the scantron form, in the Test Form space on the bottom right.) 24) A) A B) B C) C 25) The law of demand tells us that people will buy more of a good if 25) A) the prices of other goods decrease. B) the price of that good decreases. C) every factor that can affect people's buying decisions changes. D) people's income increases. 4