Professor David CesariniIntermediate Microeconomics (Econ-UA 10.004) Midterm, April 1 2015OverviewYou have 70 minutes to complete the exam. No calculators are allowed. The exam has twosections. The first section contains eight short problems, six of which are “True, False, orUncertain” problems. The second section contains one longer problem. The maximumattainable score on the exam is 100 points, which are split evenly between the two sections.Please plan to allocate your time accordingly. Please answer in the provided blue books. On the coverof each blue book, please write your name,yoursection time, and the part of the exam answeredin that book.Some AdviceComplete answers will include definitions of relevant terms and verbal intuition (in addition tographs or formulas, if those are appropriate). Do not get hung up on calculations whenanswering a question. If you get the formulas and explanation correct, little credit will bededucted for mistakes in calculation. The questions vary in difficulty, so try to keep movingthrough the exam; if you are having trouble with something, it is probably a good idea to skip itand come back later. Read over the whole test before starting.Please note that simply answering “True”, “False” or “Uncertain” to questions 3-8 in section 1will not earn you any credit. Your grade on these questions will depend on the generality,completeness, and persuasivenessof yourexplanation. The objective here is to provide ananswer that convinces; not merely an answer that is “not wrong.” At the very least, make surethat you give clear definitions for the relevant economic terms used in the question. Obviously,there are often several routes by which you could get to the correct answer. Any complete andaccurate answer that clearly spells out the logic behind your reasoning will earn full credit.
