NAME: ________________________________________
Final Exam Winter 2007
Economics 100
Professor Stevens
This exam is worth 100 points in total and contains 8 pages including this cover sheet. You
have 2 hours to complete the exam.
You may not use notes, books, calculators, or any other
materials.
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I.
Multiple Choice.
Circle the best answer to each question. (4 points each).
1.
The income effect of a decrease in the price of a good is to:
a.
increase consumption of the good if it is a normal good
b.
increase consumption of the good whether it is a normal good or not
c.
decrease consumption of the good if it is a normal good
d.
decrease consumption of the good whether it is a normal good or not
2.
A consumer’s utility function is given by U(x,y) = x
2
y
2
+200.
If she is consuming 10 units of
good X, and 2 units of good y, her marginal utility of X is equal to:
a.
220
b.
20
c.
320
d.
80
3.
If a monopolist chooses the optimal twopart tariff and faces only a single group of identical
consumers, he will set
a.
price above marginal cost and an entry fee of zero
b.
price equal to marginal cost and an entry fee of zero
c.
price equal to marginal cost and a total entry fee equal to the entire consumer surplus
d.
price above marginal cost and a total entry fee equal to the entire consumer surplus
4.
A firm’s isoquant summarizes
a.
all possible input combinations that have the same total cost
b.
all possible input prices that result in the same total cost
c.
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 Winter '09
 STEVENS
 Economics, Supply And Demand, a. b. c.

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