Economics 101 Name _____________________________Spring 2011 TA Name __________________________2/3/11 Discussion Section #_________________First Midterm Student ID # _______________________Version 1DO NOT BEGIN WORKING UNTIL THE INSTRUCTOR TELLS YOU TO DO SOREAD THESE INSTRUCTIONS FIRST.You have 75 minutes to complete the exam. The exam consists of 20 binary choice and 20 multiple choicequestions. Each binary choice question is worth 2 points and each multiple choice question is worth 3 pointsfor a total of 100 points. - We reserve the right to deduct four points for failing to fill out the scantron completely andaccurately and the exam booklet completely and accurately!- Answer all questions on the scantron sheet with a #2 pencil NO CELL PHONES, CALCULATORS, OR FORMULA SHEETS ARE ALLOWED.PICK THE BEST ANSWER FOR EACH QUESTION.How to fill in the scantron sheet: 1. Print your last name, first name, and middle initial in the spaces marked "Last Name," "FirstName," and "MI." Fill in the corresponding bubbles below.2. Print your student ID number in the space marked "Identification Number." Fill in the bubbles. 3. Write the number of the discussion section you’ve been attending under "Special Codes" spacesABC, and fill in the bubbles. You can find the discussion numbers below on this page. 4. Write the version number of your exam booklet under "Special Codes" space D, and fill in thebubble. The version number is on the top of this page. If there is an error on the exam or you do not understand something, make a note on your exambooklet and the issue will be addressed AFTER the examination is complete. No questions regardingthe exam can be addressed while the exam is being administered. When you are finished, please get up quietly and bring your scantron sheet and this exam booklet tothe place indicated by the instructors.Discussion sections are as follows: Irina Merkuryeva Patricia Abbott Ryan Veiga Yi LiDis 386 Th 16:35 Dis 382 Fr 07:45 Dis 384 Th 16:35 Dis 385 Fr 07:45Dis 388 Fr 11:00 Dis 383 Fr 09:55 Dis 389 Fr 11:00 Dis 387 Fr 08:50Dis 390 Fr 08:50 Dis 393 Fr 12:05 Dis 391 Fr 09:55Dis 392 Fr 12:05 Dis 394 Fr 13:20 1Work Sheet 2I, __________________________________, agree to neither give nor receive any help on thisexam from other students. Furthermore, I understand that use of a calculator is an academicmisconduct violation on this exam.Signed ____________________________________I. Binary Choice Questions (20 questions worth 2 points each)1. The statement “All birds in Wisconsin are red” is an example of a a. Normative statement. b. Positive statement. 2. Scarcity of resources implies thata. People are specialized.b. People face tradeoffs. 3. “Bill Gates, a billionaire, is not constrained in his choices.” This statement from aneconomist’s perspective is a. Trueb. False4. Models, if well designed and useful, are never altered or discarded with the passage of time. a. Trueb. False5. The old adage “Children should be seen and not heard” is an example of aa. Normative statement. b. Positive statement. 6. Disagreements among economists may be due to a. Normative differences.b. Either positive or normative differences. Next→ 3Use the information below to answer the next two questions. Suppose that each time the X variable increases by two units, the Y variable decreases by four units.7. Based on this information we know that X and Y are a. Directly related to one another.b. Inversely related to one another. 8. Given the information in the previous question it is possible to a. Compute the slope of the relationship.b. Write an equation for the relationship between X and Y. 9. The Y-intercept of a positive relationship between two variables, X and Y, will a. Always be a positive number. b. May or may not be a positive number. 10. The scale used in drawing a graph may not affect the accuracy of the relationship depicted inthe graph, but can affect the emotional reaction to the data presented in the graph.a. Trueb. False11. Consider the equation X = 2Y – 100. The y-intercept of this equation when graphed with Ymeasured on the vertical axis and X measured on the horizontal axis is equal to a. -100.b. 50.12. Consider the equation W = 3T + 500. The slope of this equation when T is the variablemeasured on the vertical axis and W is the variable measured on the horizontal axis is equal toa. 3b. 1/3 Next→ 413. Joe made a 56 on his 80 point test in math class this week. He is trying to decide what thelowest score he can make on next week’s 90 point test is in order to increase his classaverage. Assume that both tests have equivalent weight in the calculation of Joe’s final grade.What score must Joe get on the math test to reach his goal?a. He must score at least a 60 on the test. b. He must score at least a 63 on the test. 14. Mary knows that in her physics class the A range goes from 90 points to 100 points. But, herphysics professor has confused her by grading on a 350 point scale. How many points mustMary make on this 350 point scale in order to earn an A in physics?a. Mary must earn a minimum of 315 points. b. Mary needs more information to answer this question. 15. Suppose the University decides to do a research study focusing on college students and theirweight. This study will be more interesting if the study is done usinga. Cross sectional data.b. Time series data. 16. Consider a bowed out from the origin production possibility frontier. This bowed shape is dueto a. The advantages that individuals or countries get from trading with other individualsor countries. b. Specialization of resources. Next→ Use the following information about Pedro’s 5production possibility frontier (PPF) for bagels and cream cheese to answer the next two questions.His PPF is linear between each of the points in the table (for example, his PPF is linear between pointsA and B, between points B and C, etc.).Combination Number of Bagels Servings of Cream CheeseA 100 0B 90 40C 70 60D 40 80E 0 10017. From the above information what is Pedro’s opportunity cost of producing one more bagel ifhe is currently producing at point C in the table?a. 2/3 cheeseb. 1 cheese18. If Pedro decides to produce 70 servings of
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