s. Using supply and demand analysis and the concept elasticity, analyze Senator Bell's bill. Predict the impact of his bill in the short and long run. Illustrate your analysis with the appropriate diagram(s). SAMPLE FIRST EXAMEcon 2 1.The concept of opportunity costa.is relevant only to economics.b.can be applied to the analysis of any decision-making process.c.applies to consumers but not to firms.d.refers only to actual payments and incomes.2.A study of whether or not employers discriminate against women by paying them lower wages and assigning them to lower-level positions than men would be in the area ofa.industrial organization.b.microeconomics.c.law and economics.d.macroeconomics. 3.Refer to Figure 2.3. A point like point B represents a situation ofa.full employment but production inefficiency.b.less than full employment but production efficiency.c.both full resource employment and production efficiency.d.less than full employment and production inefficiency. Page 24.Consider two countries, Germany and Sweden. Germany devotes a larger portion of its production to capital. Which of the following statements is most likely true?a.Germany is a poorer country than Sweden.b.Germany will move up its production possibility curve faster than Sweden.c.Sweden is producing inside its production possibility frontier, while Germany is producing at a point on its production possibility frontier.d.Germany's production possibility frontier will shift up and out farther and faster than Sweden's.5.National defensea.will be provided by a free market system and private corporations.b.will be provided by a private corporation.c.will be paid for voluntarily by users.d.will not be efficiently provided by a completely free market system. 6.Refer to Figure 4.21. When the economy moves from point A to point B, there has beena.an increase in demand and an increase in supply.b.an increase in demand and an increase in quantity supplied.c.an incre...
