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Unformatted text preview: Econ 001: Midterm 2 (Dr. Spiegel) Nov 16, 2005 Instructions: • This is a 60-minute examination. • Write all answers in the blue books provided. Show all work. Use diagrams where appropriate and label all diagrams carefully. • Write your name and your Recitation Instructor's name in every blue book that you use. • This exam is given under the rules of Penn's Honor system. • All blue books, blank or filled, must be handed in at the end of this exam. No blue books may be taken from the room. • The use of Programmable Calculators is in violation of Departmental rule. It is strictly forbidden! The Midterm has 2 parts. Part 1 consists of 5 multiple-choice questions. Please write you answers in blue book 1. Part 2 consists of 3 short answer questions. Please use a separate blue book for each answer. Part I: Multiple Choice Questions (4 points each/20 points total): 1. Greg spends all of his income on apples and oranges. If his income increases by 20 percent and the prices of both goods also increase by 20 percent then: a. Greg will purchase more apples. b. Greg will purchase more oranges. c. Greg will purchase less of both goods. d. Greg’s consumption bundle will not change. 2. Which of the following is NOT consistent with a perfectly competitive industry in the short-run equilibrium?...
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This note was uploaded on 04/04/2012 for the course ECO 001 taught by Professor Urispiegel during the Fall '11 term at UPenn.
- Fall '11