Midterm Exam Fall 2001

Midterm Exam Fall 2001 - Page 1 of 4 ECONOMICS 203 MIDTERM...

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Page 1 of 4 ECONOMICS 203 MIDTERM EXAM – Fall 2001 NAME ___________________________________________Student #______________________________ (Points) (5) 1. (2.5.3) Identify a constrained optimization problem we all face. (10) 2. (2.5.3) Define opportunity cost. Give an example. (10) 3. (2.7.7) Describe what the discount rate measures. Comment on the following assertion: The “right” discount rate is 10%. (10) 4. (2.8.7) Explain why the word “perceived” is so important in the discussion of risk. (5) 5. (3.4.13) Identify our two nice assumptions. (No explanation necessary)
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Page 2 of 4 ECN 203 Midterm Exam NAME _______________________________________________ (10) 6. (4.3.16) In what follows, assume the ε x > 0 between goods A and B, ε x = 0 between goods B and C, ε x < 0 between goods A and C. On each graph identify the initial equilibrium price and quantity exchanged with P 0 and Q 0 respectively. Connecting Markets by Cross Price Effects
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Midterm Exam Fall 2001 - Page 1 of 4 ECONOMICS 203 MIDTERM...

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