Sample First Term Test

Sample First Term Test - UNIVERSITY OF WATERLOO Department...

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

View Full Document Right Arrow Icon
UNIVERSITY OF WATERLOO LAST NAME ONLY (in UPPER CASE ): Department of Economics Professor J. Cuenca Initials (no ID# here): Economics 201, Section 02 (Spring 2008) Term Test (40%) MARKS A: / 4 PLEASE CIRCLE the "B" question answered: 1 or 2 or 3 B: / 8 C: /24 D: / 4 PLEASE CIRCLE the 8 "C" questions answered: 1 2 3 4 5 6 7 8 9 10 11 12 Only a ruler is allowed. You may use the back of the pages for preliminary sketches or calculations, but we will read and mark the page fronts only. _________________________________________________________________________________________ ___ PART A ( 4 points out of 40 ): Please solve the following problem in the space provided. A-1. A person's utility function is TU = XY. The given prices are P x = $3 and P y = $1 [in case you have no calculus background: MU x = Y and MU y = X]. Please answer these 2 questions using the same procedure that was suggested in the Take-Home Test: (a) Find the demand equation for good X [Hint : begin by maximizing total utility and do NOT replace P x and P y with their given values; don't forget also to use the equation of the budget line]. (b) Find the equation of the income consumption curve.
Background image of page 1

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

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

This note was uploaded on 10/02/2011 for the course ECON 201 taught by Professor Vandewaal during the Spring '09 term at Waterloo.

Page1 / 2

Sample First Term Test - UNIVERSITY OF WATERLOO Department...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online