Mid-Termv1 - ECON 201 - 2006 Fall MIDTERM Test _ Name:...

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ECON 201 - 2006 Fall MIDTERM Test _ Name: Student No: MULTIPLE CHOICE: Answer all of the following 6 questions. Each question worth 10 points. 1. This weekend, Martha has time to read 40 pages of economics and 30 pages of sociology. Alternatively, she could read 30 pages of economics and 50 pages of sociology. Which of these equations describes all combinations of pages of economics, E, and sociology, S, that she could read over the weekend? A. E + S = 70. B. E/ 2 + S = 50. C. 2 E + S = 110. D. E + S = 80. E. All of the above. 2. If there are only two goods, if more of good 1 is always preferred to less, and if less of good 2 is always preferred to more, then indifference curves A. slope downward. B. slope upward. C. may cross. D. could take the form of ellipses. E. None of the above. 3. Josephine's utility function is U ( x, y ) = y + 5 x 5 . She has 1 unit of x and 2 units of y . If her consumption of x is reduced to zero, how much y must she have in order to be exactly as well off as before? A.
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Mid-Termv1 - ECON 201 - 2006 Fall MIDTERM Test _ Name:...

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