Econ_198_Aut_06_Exam__4 - Introduction to Microeconomics...

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Introduction to Microeconomics Allen R. Sanderson Economics 19800 Autumn 2006 FOURTH/FINAL HOUR EXAMINATION Name (Please Print): ___________________________________________ [40 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 14 points total. 1. According to Parkin’s figures, a. the average (mean) household income in the United States is about $28,000. b. in the U.S. the % of families that have incomes below the mean is, by definition, < 50 percent. c. the richest 20 percent of households in the U.S. receive about 50 percent of the total income. d. the richest 20 percent of households in the U.S. hold about 50 percent of all wealth. e. the biggest single factor affecting the distribution of income is race/ethnicity. 2. Patents represent compromises that attempt to balance: a. the gains from more inventions against the creation of temporary monopolies. b. efficiency vs. equity (that is, drug firms, for example, benefit while poor people lose). c. positive consumption externalities vs. negative production externalities. d. the benefits of public subsidies vs. the costs of private provision. e. the present value of benefits vs. the present value of costs. 3. Air pollution from automobiles is: a. a public bad as opposed to a public good. b. a negative production externality. c. not an externality because drivers pay gasoline taxes and spend more time in traffic congestion themselves. d. a negative externality of consumption. e. an externality if one is driving during rush hour but not at other times. 4. Which of the following is not a source of the widening inequality of income or wealth? a. bequests b. assortative mating c. human capital accumulation d. progressive taxes e. immigration 5. The cost of producing an additional unit of a good or service that is borne by people other than the producer is called: a. the marginal inefficiency cost. 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_06_Exam__4 - Introduction to Microeconomics...

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