ECF1100 Mid Semester test – Practice questions Semester 1 2022
solutions
1
Answer: D
2
Answer: B
3
Answer: C
4
Answer: B (One hour he spends on pizza delivery should earn what he could
make by delivering newspapers per hour. Sp it is 10/4 = 2.5)
5
Answer: C (Her total cost is ticket costs, $15, plus what she could have earned
from dog-sitting, $30.)
6
Answer: E (She is indifferent between doing it on her own or hiring a
supervisor.)
7
Answer: C
8
Answer: D (If Ben has a comparative advantage in A, then Sally should have a
comparative advantage in B.)
9
Answer: D

10
Answer: E (p is inefficient and q is unattainable.)
11
Answer: C
12
Answer: C

13
Answer: B
14
Answer: C
15
Answer: A

16
Answer: E
17
Answer: D
18
Answer: D

19
Answer: A (Draw demand-supply diagrams)
20
Answer: D (D leads to an increase in supply, hence a decrease in price, ceteris
paribus.)
21
Answer: C
22
Answer: C
23
Answer: B
24
Answer: A
25
Answer: B
26
Answer: D
27
Answer: B
28
Answer: D
29
Answer: C

30
Answer: E (Elasticity is in terms of percentage changes, not absolute changes.
So we need more information to tell the size of elasticity.)
31
Answer: B
32
Answer: D (D is an example of the ‘law’ of supply. C is an example of the law
of demand since high unemployment implies low opportunity cost of
attending a college.)