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202 final exam marking guide (Winter 2010)

202 final exam marking guide (Winter 2010) - Marking guide...

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Unformatted text preview: Marking guide, final exam, Econ 202 (Winter 2010) Multiple-choice (1) c (2) e (3) e (4) d (5) d (6) a (7) e (8) c (9) a (10) b Short-answer (1) 20 points total (a) 4 points total • 2 points: correct equation (5x + 2y = 100) • 2 more points: correct slope (-5/2) (b) 8 points total • 2 points: knowing that utility-maximization requires MUx/Px = MUy/Py • 1 more point: explaining equal MU-per-dollar condition (unequal MUs-per-dollar would motivate consuming more of good with higher MU-per-dollar) • 1 more point: substituting prices to get MUx/5 = MUy/2 • 1 more point: solving this to get MUx = (5/2)MUy • 2 more point: making interpretation that MUx must be 2.5 times MUy since Px is 2.5 times Py • 1 more point: more intuitive interpretation that value of x must be higher than that of y by same proportion that Px is higher than Py (c) 8 points total • 1 point: asserting that SE on x < 0 • 1 more point: explaining that SE on x < 0 because x has become relatively more expensive • 1 more point: asserting that IE on x < 0 • 1 more point: explaining that IE on x < 0 because real income has fallen and x is normal • 1 more point: asserting that GE on x < 0 • 1 more point: explaining that GE on x < 0 since both SE and IE are < 0...
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202 final exam marking guide (Winter 2010) - Marking guide...

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