2010 Midterm - YORK UNIVERSITY: ECONOMICS DEPARTMENT...

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YORK UNIVERSITY: ECONOMICS DEPARTMENT AP/ECON:2300D F/W 2010: INTERMEDIATE MICROECONOMICS Midterm Exam: October, 2010 INSTRUCTOR: M. ANAM TIME: 1hr 30 mins SECTION A: SHORT ANSWER QUESTIONS. 10 X 5 = 50 PTS. 1. If she spends all of her income on breadfruits and melons, Natalie can just afford 9 breadfruits and 10 melons per day. She could also use her entire budget to buy 3 breadfruits and 12 melons per day. The price of breadfruits is 8 yen each. How much is Natalie’s income per day? 2. If Nancy is indifferent between the bundles (2x and 16y) and (6x and 8y) she must prefer the bundle (3x and 12y) to either of them. Explain if this is true, false or uncertain. 3. A consumer prefers more to less of every good. Her income doubles, and the price of one of the goods doubles while other prices stay constant. These changes must have made her better off. Explain if this is true, false or uncertain. 4. For the utility function u = xy, marginal rate of substitution must be constant because
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This note was uploaded on 01/28/2011 for the course ECON 2300 taught by Professor Barrysmith during the Fall '10 term at York University.

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2010 Midterm - YORK UNIVERSITY: ECONOMICS DEPARTMENT...

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