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MidtermW08Solutions - Econ. 130 Midterm Exam February 14,...

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Econ. 130 Midterm Exam February 14, 2008 Part I. Multiple Choice (45 points) Write down the letter of the correct answer to each question below in your blue book. Each is worth 3 points Exam: A B C Question 1. 15. 6. Positive economics 1. 15. 6. A. does not depend on market interactions. 1. 15. 6. B. only looks at the best parts of the economy. 1. 15. 6. C . examines how the economy actually works (as opposed to how it should work). 1. 15. 6. D. is very subjective. 2. 14. 10. The First Fundamental Theorem of Welfare Economics requires 2. 14. 10. A. producers and consumers to be price takers. 2. 14. 10. B. that there be a market for every commodity. 2. 14. 10. C. that the economy operate at some point on the utility possibility curve. 2. 14. 10. D . all of the above. 3. 13. 7. When different bundles of commodities give the same level of satisfaction, you are 3. 13. 7. A . said to be indifferent between the bundles. 3. 13. 7. B. said to be confused. 3. 13. 7. C. not able to make a decision. 3. 13. 7. D. unhappy with any combination. 3. 13. 7. E. none of the above.
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2 Exam: A B C Question 4. 12. 9. General equilibrium refers to 4. 12. 9. A. examining markets without specific information. 4. 12. 9. B. finding equilibrium from general information. 4. 12. 9. C. pricing goods at their shadow price. 4. 12. 9. D. all of the above. 4. 12. 9. E . none of the above. 5. 11. 8. A public good is 5. 11. 8. A. a good that is excludable. 5. 11. 8. B . nonrival in consumption. 5. 11. 8. C. more costly than a private good. 5. 11. 8. D. paid for by the government. 6. 10. 1. Logrolling is 6. 10. 1. A. a system used often at lumberjack contests. 6. 10. 1. B. a system that will always lead to worthy projects getting funded. 6. 10. 1. C . a system that involves the trading of votes. 6. 10. 1. D. a system that generally involves double-peaked preferences. 7. 9. 2. _________ is the investment that individuals make in education, training, and health care that raise their productive capacity 7. 9. 2. A. Capital market 7. 9. 2. B . Human capital 7. 9. 2. C.
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This note was uploaded on 08/07/2008 for the course ECON 130 taught by Professor Krop during the Spring '08 term at UCLA.

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MidtermW08Solutions - Econ. 130 Midterm Exam February 14,...

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