CourseOutline - ECON 203 SPRING 2011 Intermediate...

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ECON 203 – SPRING 2011 Intermediate Microeconomics. Midterm 1 Wednesday Feb 16 th , 2011 – 50 Minutes. This midterm consists of two parts. Part 1 contains 8 multiple choice questions that is worth 1 mark each. Part 2 has two short-answer questions that are worth 21 marks each. In total you can earn 50 marks. Fill out your name, student number and lab section before you start. Good luck! Name:……………………………………………………………………………………………. Student Number:………………………………………………………………………………… Lab Section: B0…………………………………………………………………………………… Section 1: Multiple Choice Questions 1. Suppose that the supply curve for a good is vertical. In this case we would expect A) a tax placed on the seller to be borne entirely by the seller. B) a tax placed on the buyer to be borne entirely by the seller. C) a tax placed on the buyer to be borne entirely by the buyer. D) A and B. E) A and C Ans: D 2. The marginal rate of substitution between two goods is A) the absolute value of the slope of the indifference curve. B) the tradeoff between the two goods under consideration at any particular point. C) the total utility derived at any point. D) all of the above. E) A and B. Ans: E 3. In the standard case, in consumer equilibrium, which of the following is true? A) The marginal rate of substitution equals the absolute value of the slope of the budget constraint. B) The indifference curve is tangent to the budget constraint. C) The consumer is maximizing utility given the budget constraint. D) All of the above are true. Ans: D 4. The cross-price elasticity of demand for perfect complements is A) positive.
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This note was uploaded on 08/03/2011 for the course ECON 203 taught by Professor Okhan during the Spring '11 term at University of Victoria.

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CourseOutline - ECON 203 SPRING 2011 Intermediate...

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