This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
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. If you could exactly afford either 4 units of x and 24 units of y, or 9 units of x and 4 units of y, then if you spent all of your income on y, how many units of y could you buy? (a) 40 (b) 20 (c) 60 (d) 13 (e) None of the above. 2. Janet consumes x 1 and x 2 together in fixed proportions. She always consumes 2 units of x 1 for every unit x 2 . One utility function that describes her preferences is (a) U ( x 1 ,x 2 ) = 2 x 1 x 2 . (b) U ( x 1 ,x 2 ) = 2 x 1 + x 2 . (c) U ( x 1 ,x 2 ) = x 1 + 2 x 2 . (d) U ( x 1 ,x 2 ) = min { 2 x 1 ,x 2 } . (e) U ( x 1 ,x 2 ) = min { x 1 , 2 x 2 } ....
View
Full
Document
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
 JOSEPHPETRY

Click to edit the document details