Economics 1021A/B Midterm: Economics1021 Midterm 1 2010 Fall Solutions

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: All

Document Summary

Instructions: the examination begins at 4:00 p. m. and ends at 6:00 p. m, check that your examination paper contains 16 pages, use a black pencil to complete your scantron form. Note: questions are printed on both sides of each page. B-1: a university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus. ________ and the opportunity cost of a bus ride ________. The following table gives points on the production possibilities frontier for goods x and y. B-3: suppose a hurricane causes extensive devastation, destroying houses, roads, schools and factories. Use the table below to answer the following questions. The planets of vulcan and romulus each produce goods x and y. The following table gives points on their production possibilities frontiers. In 5 hours, bob can cook 5 meals or clean 6 rooms.