Econ_198_Spr_06_Exam__4 - Introduction to Microeconomics...

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Introduction to Microeconomics Allen R. Sanderson Economics 19800 Spring 2006 FOURTH/FINAL HOUR EXAMINATION Name (Please Print): ___________________________________________ [43 Points Possible] Part I. Multiple Choice. Circle letter corresponding to your answer. One point each; 17 points total. 1. Which of the following is a reasonable estimate for the income elasticity of demand for environmental amenities? a. -3.0 b. -1.0 c. -0.5 d. zero e. 0.5 f. 1.0 g. 3.0 h. infinite 2. Patents do all of the following except : a. increase the total value of the idea. b. promote creativity and stimulate research. c. are essentially licenses to overcharge. d. are a legally sanctioned restraint on trade. e. create deadweight losses. 3. Locating a beehive next to an apple orchard is one way of: a. benefiting from scale economies. b. taking advantage of positive production externalities. c. solving a public goods / free rider problem. d. breaking down the harmful effect of private property rights. e. exploiting monopsony power. 4. The mean household income: a. separates households into two equal groups. b. in the United States is around $25,000 a year. c. is the most common or frequently occurring household income. d. is the same as the median household income – in both theory and actuality. e. is what one usually means by the “average” income. 5. College graduates earn more income over the course of their lifetimes than high school graduates or dropouts. Conceptually, the best way to think about these higher salaries would be: a. positive consumption externalities of higher education. b. positive production externalities of higher education. c. negative consumption externalities of having only a high school education or less. d.
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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_Spr_06_Exam__4 - Introduction to Microeconomics...

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