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Unformatted text preview: Marking guide, final exam, Econ 202 (Winter 2010) Multiplechoice (1) c (2) e (3) e (4) d (5) d (6) a (7) e (8) c (9) a (10) b Shortanswer (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 utilitymaximization requires MUx/Px = MUy/Py • 1 more point: explaining equal MUperdollar condition (unequal MUsperdollar would motivate consuming more of good with higher MUperdollar) • 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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This note was uploaded on 10/05/2011 for the course ECON 2021 taught by Professor Zelder during the Spring '11 term at Northwestern.
 Spring '11
 ZELDER
 Microeconomics

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