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Answers for the sample midterm questions.
Multiple Choice:
1. B
2. C
3. A
4. C
5. D
6. A
The point here is that while both surveys cost the same and you get the same
number of returned surveys either way, the selection problem will probably be worse for
the normal mail (40%) than the registered mail (80%).
A 80% sample of the population
will likely be more representative of the population as a whole than a 40% sample.
7.
F
1 a) When we can set
separate
two part tariffs to both students and faculty, we can
consider the two markets completely independently.
In each market, we have a group of
identical consumers, so the optimal twopart tariff involves charging p=mc and T=the
consumer surplus at that price.
So:
For the students, set p = 0, T = 100
For the faculty, set p = 0, T = 400
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 Spring '08
 Ackerberg
 Economics

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