{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

sample quiz 1 - Name Recitation teachers name and time day...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: Recitation teacher’s name and time + day of recitation: Microeconomics (Fall 2010) Sample Quiz 1 You have 15 minutes to complete the quiz. Good luck. Suppose that David has preferences for hours watching ice hockey (where H is the number of hours he watches ice hockey) and for hours watching basketball (where B is the number of hours watching basketball), where these preferences can be represented by the following utility function: U(H,B) = 8H + 4B a. (4 points) What does it mean for David’s preferences to be ‘continuous’? If one hour of ice hockey and three hours of basketball is preferred to four hours of basketball alone, then anything close to one hour of ice hockey and three hours of basketball is preferred to four hours of basketball alone. b. (4 points) Write down in words what is meant by David’s marginal rate of substitution for ice hockey versus basketball. The number of hours of watching ice hockey David is willing to substitute for an additional hour of watching basketball.
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern