Econ_198_Aut_05_Exam__4

Econ_198_Aut_05_Exam__4 - Introduction to Microeconomics...

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Allen R. Sanderson Economics 19800 Autumn 2005 FOURTH/FINAL HOUR EXAMINATION Name (Please Print): ___________________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 13 points total. 1. Ideally, Pigovian taxes would be set at a level that would: a. provide incentives for those on the lowest rungs of our economic ladder to seek and hold steady employment. b. equalize the after-tax distribution of income. c. reduce significantly the intergenerational transfers of wealth, which are the greatest source of inequality. d. convert windfall profits of corporations, and windfall gains to inventors, to normal rates of return. e. be equal to the marginal external costs of pollution. 2. The least important factor in the list below in determining/affecting the distribution of income is: a. education. b. size of household. c. race/ethnicity. d. region of the country. e. age. 3. Which of the following has not increased in the U.S. over the last two decades? a. the Gini ratio b. the measured poverty rate c. the percent of income going to those in the top quintile d. the returns to human capital e. the demand for high-skilled labor relative to the demand for low-skilled workers 4. The paring knife example in The Fatal Equilibrium is used to illustrate what economic principle? a. the value (or opportunity cost) of time b. consumer surplus c. (negative) externalities d. competitive market forces e. subjective value 5. The Filene’s Basement example in The Fatal Equilibrium is used to illustrate the principle of: a. the value (or opportunity cost) of time. b. consumer surplus. c. diminishing marginal returns. d. competitive market forces. e. subjective value. 6. The comment in The Fatal Equilibrium that a legal secretary was probably more able to afford to take a vacation than her attorney boss was in reference to the principle of: a. the value (or opportunity cost) of time. b.
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This test prep was uploaded on 04/07/2008 for the course ECON 198 taught by Professor Sanderson during the Spring '08 term at UChicago.

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Econ_198_Aut_05_Exam__4 - Introduction to Microeconomics...

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