exam3_versA - Department of Economics University of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Department of Economics University of California, Davis ECONOMICS 1A Winter 2010 L. Jay Helms Final Examination Version A Each of the 50 questions is worth 2 points. Before you begin : On your Scantron form you must complete in the following. Failure to fill in these items accurately will prevent your exam from being graded correctly. Name: Last Name, First Name Subject: “Ecn 1A” Test No.: Leave blank. Date: “3/17/2010” Hour: Leave blank. ID Number: Your nine-digit student ID number (written out and bubbled in) Test Form: Your exam version (“A”) (bubbled in) Instructions : Choose the best answer. You may write whatever you like on this exam paper, which you will be able to keep. However, you must answer the questions on your Scantron. You will be turning in only your Scantron form, not this exam paper. Warning : Scantron errors may occur if you fail to erase an incorrect answer completely. Where erasures are incomplete and the Scantron machine—detecting two answers to the same question—marks your answer as wrong, no regrading can be allowed. It is your responsibility either to be certain of your answers before you mark them or to be very careful to erase completely any incorrect markings. You may wish to replace your Scantron form with a new one if you need to correct an error.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ecn 1A Winter 2010 – Final Exam – Version A Page 2. 1. According to campus policy you have a right to live in an uncluttered apartment. Unfortunately, your roommate is very messy. Suppose your roommate gets a $200 benefit from being messy, but that having messy living quarters imposes a $100 cost on you. The Coase Theorem would suggest that an efficient solution would be for your roommate to a. stop the messy habits because they impose a negative externality on you. b. pay you at least $100 but less than $200 to live with the clutter. c. continue to be messy and force you to make other living arrangements elsewhere. d. demand payment from you of at least $100 but no more than $200 in return for cleaning up the mess. 2. If education produces positive externalities we could expect a. government to tax education to increase efficiency. b. government to subsidize education to increase efficiency. c. people to realize the benefits and therefore cause the demand for education to increase. d. colleges to relax admission requirements. 3. When pollution is a negative externality in the production process, an optimal tax on pollution would be one under which a. producers would choose not to pollute. b. producers internalize the cost of the pollution. c. a benevolent social planner is able to maximize production. d. All of the above. e.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/25/2010 for the course ECN 1A ECN 1A taught by Professor Jayhelms during the Spring '09 term at UC Davis.

Page1 / 15

exam3_versA - Department of Economics University of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online