midterm1 - Economics 302 Silve Parviainen Intermediate...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Economics 302 Silve Parviainen Intermediate Microeconomics Spring 2007 Midterm Examination I This is a 90-minute exam, with closed books and notes. No calculators allowed. There are four questions in the exam. Each question is worth 25 points. Remember to label your graphs carefully, and show your work. GOOD LUCK! 1 Preferences and Utility For each of the preferences described in (a) – (d) below, draw two indifference curves and write a utility function describing those preferences. (a) I like both apples and oranges, and always get the same additional satisfaction from an apple as I get from 2 oranges. (b) I like apples but neither like nor dislike oranges. (c) I like both apples and oranges, but want to consume them in a fruit salad with exactly 3 apples for each 2 oranges. (d) I like both apples and oranges, and always use exactly 50% of my income to apples and 50% to oranges. 2 Utility Maximization Your favorite weekend activity is to watch movies and eat chocolate ice cream. Your preferences for this canYour favorite weekend activity is to watch movies and eat chocolate ice cream....
View Full Document

{[ snackBarMessage ]}

Page1 / 2

midterm1 - Economics 302 Silve Parviainen Intermediate...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online