MT2_winter2007

MT2_winter2007 - Name Midterm Exam Winter 2007 Economics 100 This exam is worth 100 points in total and contains 7 pages including this cover sheet

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Name:__________________________________________________ Midterm Exam Winter 2007, Economics 100 This exam is worth 100 points in total and contains 7 pages including this cover sheet. You have 1 hour and 15 minutes to complete the exam. You may not use notes, books, calculators, or any other materials.
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Part I. Multiple choice. Circle the letter of the best answer to each question. (5 points each) 1. Indifference curves will be convex if a. Both goods exhibit diminishing marginal utility b. The marginal rate of substitution decreases as you move down the indifference curve c. Preferences are transitive d. More of a good is always preferred to less e. The marginal rate of substitution increases as you move down the indifference curve 2. The income effect of an increase in the price of a good (assuming all goods are normal goods) a. Will be to increase consumption of all goods b. Will be to decrease consumption of all goods c. Will be ambiguous for any goods whose price does not change d. Will be ambiguous unless we know if goods are substitutes or complements e. Will always be larger than the total effect 3. The effect of simultaneous increases in supply and demand on the equilibrium price and quantity in a market is: a. To increase price and increase quantity b. To increase price, but have an ambiguous effect on quantity c. To have ambiguous effects on price and quantity d. To increase quantity, but have an ambiguous effect on price e. To decrease quantity, but have an ambiguous effect on price 4.
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This note was uploaded on 03/11/2010 for the course ECN ECN100 taught by Professor Stevens during the Winter '09 term at UC Davis.

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MT2_winter2007 - Name Midterm Exam Winter 2007 Economics 100 This exam is worth 100 points in total and contains 7 pages including this cover sheet

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