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EXAMENOPGAVE
Toetsdatum:
Vakcode: Eco for IBMS
Vak: Economics for IMBS vb
Available time:
- Candidates are not allowed to use dictionary.
- Candidates are allowed to use a calculator.
- The exam is an example of the actual exam and consist of 15
multiple choice questions.
- Pages: 6
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Choose the one alternative that best completes the statement or answers the
question.
1. Which of the following best describes the characteristics of models used in
economics?
a. Models are usually complex abstractions of reality that simulate practical
problems.
b. Models are simplifications of reality that include only essential elements and
exclude less relevant details.
c. Models are approximations to reality that capture as many details as
possible.
d. Models are demonstrations of how economic concepts and theories
accurately predict real situations.
2. Refer to the graph below. How would you characterize (or define) the relationship
between disposable personal income and consumption spending?
a. A relationship that may be positive and negative, but sometimes neither
positive nor negative.
b. A positive relationship.
c. A relationship that is sometimes positive and sometimes negative.
d. A negative relationship.
3. Which of the following is not an essential component of an economic model?
a. Normative statements.
b. Hypotheses.
c. Variables.
d. Assumptions.
4. Which of the following graphs is the graph of a single variable?
a. A
b. B
c. C
d. All of the above.
5. What is the name given to the highest-valued alternative that must be given up
in order to engage in any activity?
a. Scarcity.
b. A tradeoff.
c. Opportunity Cost.
d. The production possibilities frontier.
6. In a free market system, which of the following groups brings together the factors
of production—labor, capital, and natural resources—in order to produce goods
and services?
a. Entrepreneurs.
b. Lobbyists.
c. The government.
d. Politicians.
7. Refer to the graph on the right. Which graph best represents an increase in the
amount of resources available in the economy?
a. The graph on the left.
b. Both graphs.
c. Neither graph.
d. The graph on the right.
8. Which of the following is critical for the success of a market system?
A. To allow individuals or firms to have exclusive use of their property.
B. To prevent individuals from buying or selling their property depending on the
circumstances.
C. Either choice above. Whatever people are allowed to do with their property
makes no difference to the functioning of free markets.
D. To allow the government to determine the optimal use of private property.
9. When analyzing the relationship between the price of a good and quantity
demanded, other variables must be held constant. Which term best describes such
an assumption?
A. The law of demand.
B. The term ceteris paribus.
C. The income effect.
D. The substitution effect.
10. If there are three producers in a market, how can market supply be obtained?
a. By adding both the prices and the quantities at which sellers are willing to sell
their products.
b. By adding the prices that producers are willing to obtain in order to produce a
given quantity of a good or service.
c. By adding the quantities supplied by each seller at various prices.
d. By dividing the quantity supplied in the market by three.
11. Refer to the graph on the right. What happens to quantity demanded in this
graph?
a. It increases as the price decreases.
b. It may increase or decrease as the price increases.
c. It is not related to price.
d. It increases as the price increases.
12. Refer to the graph on the right. Which of the following moves best
describes a change in demand?
a. A move from A to C.
b. A move from A to B.
c. Both moves, from A to B and from A to C.
d. None of the above
13. Which of the following is the definition of marginal benefit?
a. The additional benefit to a consumer from consuming one more unit of a
good or service.
b. The difference between the highest price a consumer is willing to pay
and the price the consumer actually pays.
c. The additional cost to a firm of producing one more unit of a good or
service.
d. The difference between the lowest price a firm would have been willing
to accept and the price it actually receives.
14. Refer to the graph below. After the rent control is imposed, area A
represents:
a. Producer surplus transferred from landlords to renters.
b. A deadweight loss.
c. A shortage of apartments.
d. Consumer surplus transferred from renters to landlords
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15. Which of the following terms corresponds to buying and selling at
prices that violate government price regulations?
a. Black market.
b. Scalping.
c. Price conspiracy.
d. Competitive market.
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