midterm230009 - Economics 2300 B: Barry Smith Midterm Exam...

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Economics 2300 B: Barry Smith Midterm Exam October 22, 2009 Instructions . The exam has three parts: A, B and C. Part A contains choice and is worth 20 points. Part B, worth 20 points, contains no choice. Part C is a bonus question worth 3 points. Write all of your answers in the space provided after the exam questions. You can also write on the backs of the pages. Please do not remove the staple from the exam sheets. Please write all of your answers in ink. You can use calculators but not ones that can store text. Part A Do 5 of the following 6 questions. Each is worth 4 marks. 1. What do our standard assumptions about preferences mean and what do they imply about the possibility of indifference curves crossing? 2. Ultimately we want the preferences of our agents to be such that a best bundle can be found in the budget set of the agent. Why is transitivity so important? 3. Provide a careful economic explanation of the meaning of the slope of the budget line. 4. Explain what is meant by a Pareto optimal allocation of resources.
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This note was uploaded on 04/17/2010 for the course LAPS ECON2350 a taught by Professor Barrysmithandtasso during the Spring '10 term at York University.

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midterm230009 - Economics 2300 B: Barry Smith Midterm Exam...

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