Economics 440: Labor Economics
UIUC, Prof. Ron Laschever
Exam #2 Study Notes
The exam is in class on Thursday, March 31.
The exam will cover all of the material in the Borjas
textbook, class readings, the Lincoln electric case (assignment #4) and lectures that were not covered in
Exam #1 (i.e., 2/15 (including) until 3/15 (including)), see the syllabus for more details. [Social
Interactions will be covered in the final exam, not exam#2]
I will devote some of our class on 3/29 to answer any questions/topics people may have regarding the
The format of the exam will be similar to the first exam. There will be a few true/false questions and
some more involved problems to work out. Remember that to get credit for an answer you must show
your work. You will not need a calculator for the exam and you are not allowed to have any electronic
devises, such as calculators, cell phones, palm pilots, etc., on your desk during the exam. You will be able
to write directly on the exam. As I said in class, the readings (almost all are extremely short), are included
in the material. However, I will not ask you for specific numbers/dates/names and about any of the
technical details (these articles are very non-technical points to start with).
There is no conflict midterm exam
The time to bring any conflicts to my attention was during the first
week of class. If you have an emergency that prevents you from taking the midterm, you must contact me
by email before the exam and provide documentation. We will discuss the arrangement for a make-up
exam, but only under such extraordinary circumstances.
I recommend you study for the exam by first reviewing the lecture notes, textbook, and readings. Second,
be sure you understand the correct answers to the problem set questions. Third, at the end of each chapter
in the book, there are sections called “Key Concepts,” “Review Questions,” and “Problems.” The best
way to prepare for the midterm is be sure that you understand these concepts and can answer the review
questions and problems. The website for the textbook has additional practice problems. You should also
review my answers to the problem sets. Also, below are additional practice questions and practice
concepts. You go to the Borjas book website you can generate practice quizzes:
As I mentioned in class, the book by Ehrenberg and Smith mentioned in the syllabus covers the same
to odd-numbered questions. There is a copy on reserve at the library.
In addition to the study aids at the end of each chapter, the concepts and questions below may also be
helpful in your review. Some of these are in the book and others were only covered in the lectures or
that the concepts below are supplements to, not substitutes for, the study
aids at the end of each chapter.
What is the difference between a person’s discount rate and the interest rate?