151apracticefinal

151apracticefinal - Economics 151 A Practice Final Exam...

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Economics 151 A Practice Final Exam Name ________________________ Student ID ____________________ Instructions: 1 Do not open the exam or look inside until I tell you. I want to make sure that everyone is on an even footing with regards to time. 2 Right now, write your name and id# in the space above. 3 Please put away your books and notes. Please turn off your cell phones. 4 As you do the problems, clearly mark your answers. 5 You will have 2 hours. Budget your time. If you are getting bogged down or stuck on a problem, it may be best to move on, and come back to it later. 6 There are a total of 140 points to this exam. Good luck! Write your answers to the multiple choice problems in the spaces below. 1 ______ 2 ______ 3 ______ 4 ______ 5 ______ 6 ______ 7 ______ 8 ______ 9 ______ 10 ______ 11 ______ 12 ______ 13 ______ 14 ______ 15 ______ 16 ______ 17 ______ 18 ______ 19 ______ 20 ______ 21 ______ 22 ______ 23 ______ 24 ______ 25 ______ 26 ______ 27 ______ 28 ______ 29 ______ 30 ______ 31 ______ 32 ______ 33 ______ 34 ______ 35 ______

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Multiple Choice. Choose the best answer. Mark your answer on the front of the exam. You do not need to show work for the MC questions. (2 points each) 1. The unemployment rate tells us a. The percentage of the population that is not working. b. The percentage of the population that is searching for work. c. The percentage of the labor force that has been laid off. d. The percentage of the labor force that is not working. 3. The labor supply of men a. is quite elastic, with a labor supply elasticity exceeding 2. b. is fairly inelastic, with a labor supply elasticity close to 0. c. is always the opposite of women’s labor supply. d. is determined by profit-maximizing firms alone. 4. Indifference curves with leisure and income on the axes have negative slopes a. because people are willing to give up income to obtain more leisure and vice versa. b. if a person likes leisure more than income c. because they cannot cross one another d. unless one of the goods in inferior 5. If total income (counting both earned and unearned income) is held constant, and the wage rate increases, the desired hours of work will a. increase. b. decrease. c. stay the same. d. change ambiguously. 7. If the wage increases from below Larry's reservation wage to above Larry's reservation wage, we know that: a. Larry will leisure more. b. Larry will work less. c. Larry will enter the labor force. d. Larry will leave the labor force. e. any of the above could be true. 9. The EITC has a high credit for very low-income workers. What incentives does this create? a. eligible individuals are more likely to enter the labor force due to the income effect of the credit b. eligible individuals are more likely to enter the labor force due to the substitution effect of the credit c. eligible individuals are less likely to enter the labor force, but more likely to increase hours if they are already working d. the incentives for labor market entry are ambiguous
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This note was uploaded on 04/21/2008 for the course ECON 151A taught by Professor Miller during the Fall '06 term at UC Davis.

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151apracticefinal - Economics 151 A Practice Final Exam...

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