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Unformatted text preview: IZ MI R U N I V E R S I T Y O F E C O N O M I C S Econ 201 - Microeconomics Name: Midterm - 16 December 2008 Student No: Assist. Prof. Efe Postalcı Answer the following 3 multiple choice questions and 2 essay questions. Show all your calculations for the essay question. You have 100 minutes. PART I: Multiple Choice Questions (each 10 points). 1. Edmund must pay $6 each for punk rock video casettes, V. If Edmund is paid $24 per sack for accepting garbage, G, and if his relatives send him an allowance of $96, then his budget line is described by the equation (a) 6V = 24G. (b) 6V + 24G = 96. (c) 6V = 96 - G. (d) 6V - 24G = 96. (e) None of the above. 2. Hans has $27 which he decides to spend on x and y. Commodity x costs $16 per unit and commodity y costs $10 per unit. He has the utility function U ( x,y ) = 5 x 2 +2 y 2 and he can purchase fractional units of x and y. Hans will choose (a) only x....
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This note was uploaded on 05/05/2010 for the course ECONMOICS ECON 203 taught by Professor Josephpetry during the Spring '10 term at University of Illinois, Urbana Champaign.
- Spring '10