Name [Print]_________________________________ TEST VERSION PDQB2
Economics 440: Economics of Labor Markets
University of Illinois at Urbana-Champaign
Professor Ron Laschever
Spring 2010, Exam #2
Read the instructions carefully:
Write your name at the top of each page
. You have one
hour and 20 minutes to complete this exam. You will receive 5 points for handing in the
exam on time.
No extra points if it’s up to five minutes late, and -30 points if it’s more than
five minutes late. You may not consult any outside material, such as course notes or books,
or communicate with other students, people, objects, or beings from other galaxies, during
the exam time. Turn off your cell phone and put it and any books, papers, calculators, etc.
under your desk.
Write your answers in the space provided on the exam. Speak with one of the exam proctors
if you have any procedural questions. You may use the one blank page in the end of the
exam as scratch paper, and you must turn it in with the rest of the exam (don’t separate it
If you are certain a piece of information is missing, and that without it, you can’t even
attempt to solve the question, clearly state
whatever extra assumption(s) you are using, and
then proceed to solve the question. Note that the questions do not (intentionally) have any
missing information/assumptions. You will not receive full credit for making an assumption
that is not needed, even if your answer is correct.
: The exam is worth a total of 105 points (including on time bonus). The value of
each question is indicated below. You must have the correct reasoning to get credit for an
answer. Write legibly. You will not receive credit if your answer cannot be understood.
Now, take a deep breath, another one, relax, and do well.
(Don’t forget to read the instructions and questions carefully! It’s a good use of your time)
My ROW NUMBER IS
[35 Pts] 1. True/False and short answer questions. For the true/false questions, indicate whether
each statement is true or false and support your answer with a brief explanation or a graph as
appropriate. Do not answer “maybe” or “it depends” to the true/false questions. If part of a
statement is false, the whole thing is false
. [Each lettered part is worth 5 points].