1.Which statement(s) below is (are) TRUE? (Choose one or more.)

A According to Professor Lionel Robbins, an economic problem would arise if there were multiple ends that could be ranked in order of importance and limited means that could be applied to more than one end.

B The opportunity cost of your decision to take this exam is what you would have done if you hadn't taken this exam.

C An analysis of how raising the San Jose minimum wage affects the level of unemployment in San Jose is principally a topic in macroeconomics.

D If both buyers and sellers expect the price to fall next period, the price would fall in the current period.

E If both buyers and sellers expect the price to rise next period, the price would rise in the current period.

2.Which statement(s) about international trade is (are) TRUE? (Choose one or more.)

A International trade has quite possibly contributed to the widening gap between the wages of low-skilled and high-skilled labor in the U.S.

B International trade has become relatively less important as transport costs have fallen.

C International trade has raised living standards for most Americans.

3.Which event listed below would shift the production possibilities frontier outward?

A the emigration of people of working age

B more rapid obsolescence of capital equipment and structures

C finding new uses for existing technology

4.Here are two statements about Canada's production possibilities frontier (PPF) in a world where trade is possible between the residents of Canada and the rest of the world.

I Canada's population cannot produce beyond its domestic PPF.

II Canada's population cannot consume beyond its domestic PPF.

Choose the correct option from the list below.

A Neither statement is true.

B Only I is true.

C Only II is true.

D Both statements are true.

5.International specialization and trade may be explained with reference to (choose one or both)

A a difference in comparative advantage between countries

B the existence of economies of scale in production

6.In the U.S. during the course of the twentieth century (1901-2000), real hourly wage rates rose, and average real weekly earnings

A fell because hours worked per week fell

B rose despite the fact that hours worked per week fell

C rose all the more because hours worked per week rose

Questions 7-8. Assume that real GDP per person is increasing.

7.If the overall level of prices is rising, nominal GDP per person would increase

A faster than real GDP per person

B slower than real GDP per person

Questions 7-8. Assume that real GDP per person is increasing.

8.If the overall level of prices is falling, nominal GDP per person would

A increase faster than real GDP per person

B increase slower than real GDP per person

C decrease

D not decrease

E not increase faster than real GDP per person

Questions 9-10. Assume that real GDP per person is decreasing.

9.If the overall level of prices is falling, nominal GDP per person would decrease

A faster than real GDP per person

B slower than real GDP per person

Questions 9-10. Assume that real GDP per person is decreasing.

10.If the overall level of prices is rising, nominal GDP per person would

A decrease faster than real GDP per person

B decrease slower than real GDP per person

C increase

D not increase

E not decrease faster than real GDP per person