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Unformatted text preview: Microeconomics, ECO 100A, Fall 2007, Dr. Famulari Midterm 1A: 200 points total Name_______________________________________Student ID_________________________ You must show your work to get credit for your answers Question 1: 45 points Question 2: 30 points Question 3: 30 points Question 4: 15 points Question 5: 80 points Total: 200 points Question 1: Preferences (45 points total) A consumer is asked to rank order the commodity bundles below: X 1 X 2 Bundle A 9 3 Bundle B 10 1 Bundle C 4 2 1A. (20 points) For the consumers preferences to be rational, what two axioms MUST hold? Name the axioms and define them carefully. 1B . (10 points) The consumer says that A~C and B C. On the graph below, illustrate this preference information using indifference curves on the graph below. X 2 3 2 1 4 9 10 X 1 1C. (15 points) Does this consumer consider X 2 a good, a bad, or a neutral? Explain your answer carefully....
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This note was uploaded on 04/02/2010 for the course ECON 100A ECON 100A taught by Professor Famulari during the Spring '10 term at UCSD.
- Spring '10