Department of Economics
Spring 2007
University of California
Prof. Woroch
Economics 100A
:
MIDTERM #2 EXAM
GENERAL INSTRUCTIONS
: Write your name
and your GSI’s name
on the front cover of two
blue books. Mark them as #1 and #2. The exam has 3 parts: put Parts I and II in blue book #1, and
Part III in #2. There is a total of 100 points with point assignments given in the instructions for each
part. A point translates approximately into 1 minute of time.
I.
DEFINE and RELATE
: Choose 2 of the following 3
pairs of terms. For each one, (a) give a
precise but concise definition of both terms and (b) describe the relationship between the
two. Each is worth 8 points for a total of 16 points.
1.
An “English auction” and a “Vickrey auction”
2.
A monopolist’s “Lerner Index” and the “Inverse Elasticity Pricing Rule”
3.
“Marginal expenditure on labor curve” and the “labor supply curve”
II.
TRUE or FALSE and EXPLAIN
: Choose 4 of the following 5
statements. For each, decide
whether it is true or false, and explain the reasoning behind your answer
. In each case,
supply the critical assumptions
you need to come to your conclusion. Each question is worth
7 points for a total of 28.
No explanation, no credit.
1.
A binding rent control causes greater loss in social welfare if housing is rationed to individuals in
order of their willingness to pay, compared to when available housing is randomly allocated to excess
demand.
2.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 Woroch
 Economics, Monopoly, Supply And Demand

Click to edit the document details