final sp03 - Your Name: _ Your Cornell Student ID#: _ Check...

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Your Name: _____________________________________________________ Your Cornell Student ID#: __________________________________________ Check Your TA’s Name: ____________ Joe ____________Raji ______________ Jing _____________ Jose _____________Vladimir Econ 101 - Wissink - S03 - FINAL EXAM J. WISSINK - May 15th, 2003 Exam RULES. .. There are three sections in this exam. ANSWER ALL QUESTIONS. TOTAL POINTS = 200 Part I: 30 multiple choice questions (3 points each) - answers go on separate answer sheet Part II: 3 short essay questions (15, 15, 16 points respectively) Part III: 2 problems (32 points each) ONLY SIMPLE non-graphing calculators are allowed. NO GRAPHING CALCULATORS. Write legibly and remember to label all graphs. NO QUESTIONS WILL BE ANSWERED DURING THE EXAM So please do not ask any. Write any concerns you have with a question on the exam before you turn it in. Total time for test is 2.5 hours There is a blank work sheet at the end of this exam for your use. GOOD LUCK!!! & Have a Great Summer Vacation!!!! Thanks for a great class. Part I. Multiple choice. Do the following multiple choice questions:
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2 ENTER YOUR ANSWERS CAREFULLY ONTO THE ANSWER SHEET 1. Suppose that the price of a bag of tortilla chips is $3, and the price of a jar of salsa is $2. Holding the consumer's total spending on chips and salsa constant, how many bags of chips must the consumer forego to buy an additional 6 jars of salsa? A. 0 bags B. 2 bags C. 3 bags D. 4 bags E. 6 bags 2. Suppose that the California State government wants to reduce the quantity of gasoline used by 5%. Suppose further that at the current equilibrium, the “own price elasticity of gasoline” in California is 0.2. The State government can achieve its goal by A. imposing a minimum price which is 1% higher than the current price on gasoline. B. imposing a minimum price which is 5% higher than the current price on gasoline. C. imposing a minimum price which is 25% higher than the current price on gasoline. D. imposing a minimum price which is 10% higher than the current price on gasoline. E. imposing a maximum price which is 25% higher than the current price on gasoline. 3. Economists describe markets using the price elasticities of supply and demand rather than the slopes of the supply and demand curves because: A. elasticity is easier to compute. B. elasticity is always a positive number. C. the elasticity, which does not depend upon the units of measurement, can be compared across markets whereas the slopes, which depend upon the units of measurement, cannot be directly compared. D. the slope is more useful for straight line demand and supply curves while the elasticity is more useful for demand and supply curves that are linear in the logarithms. E. it's always more fun to torture students with elasticity formulas. 4. With typical labor demand and supply, a payroll tax, like the Social Security payroll tax, on an employee's wage and salary earnings will A. decrease employment and increase the after-tax wage rate received by workers.
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This note was uploaded on 09/19/2010 for the course ECON 1101 taught by Professor Evans during the Fall '08 term at Cornell University (Engineering School).

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final sp03 - Your Name: _ Your Cornell Student ID#: _ Check...

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