Major Field Tests (MFT)
Directions: The following questions illustrate the range of the test in terms of the abilities
measured, the disciplines covered, and the difficulty of the questions posed. They should not,
however, be co
Economics Honors Exam 2009 Solutions: Macroeconomics, Questions 6-7
Question 6 (Macroeconomics, 30 points).
Please answer each question
below. You will be graded on the quality of your explanation.
a. (6 points) True/False/Uncertain. Long run equilibrium
Economics Honors Exam 2009 Solutions: Econometrics, Question 9
Question 9 (Econometrics, 60 points).
This question consists of two subquestions, each worth 30 points.
1. (30 points) In this question we will look at the relation between the logarithm of we
1011A HONORS EXAM SOLUTION KEY
JONATHAN HALL, FOR ED GLAESER
1. 15 points
There are many ways in which the student might correctly interpret this question. Therefore, the grader must consider each test on its own. Points are rewarded for mathematical
Economics Honors Exam 2009 Solutions: Econometrics, Question 10
The answer keys below are suggested solutions, and students may propose alternative answers. As long as they provide valid arguments and well-founded equations,
(partial) credits may be award
Micro Question 1 (30 Minutes)
REMEMBER: Answer only 2 0f 4 micro questions.
Consider a rm that pays a highly~skilled, experienced worker $20 per hour. She is allowed to
work as many hours as she chooses and she chooses precisely 30 hours each week. There
Econometrics (60 points)
Question 7: Short Answers (30 points)
Answer parts 1-6 with a brief explanation.
1. Suppose the model of interest is Yi = 0 + 1X1i + 2X2i + ui, where E(u|X)=0 and E(u2|X)=
and X1 and X2 are uncorrelated in your sample. Will the bi
Part I (24 points)
Please answer these questions in Blue Book I
The questions in Part I refer to the results in Tables 1 and 2.
1) Using regression (1) in Table 1:
a. (2 points) What is the estimated effect on the childs years of education of a
Honors Exam Preparation
April 10th 2008
NOT an exhaustive list of material
Ec1126 Focus on theory
Ec1123 Focus on application
Advised to review first 8 topics for 1123
No direction given for 1126
Refer to lecture notes
Micro Question 1
1. In the short run, a per-unit tax of $2 will create a wedge between supply and demand.
Consumers pay P* while firms receive P*-2. The equilibrium quantity decreases from
Q* to Q*. Because market demand is downward-sloping, the market pr
Question 2, Micro 30 points
a) Payo Matrix (7 points):
Without loss of generality, we normalize the utility of getting nothing to 0. Using the
assumption that utility only depends on ice cream, payos are symmetric across the pure
strategies of the other p
May 1, 2007
a. (4 points) Capitalists have to solve the following maximization problem:
t+1 u(ct ),
where ct = (1 )rkt1 + kt1 kt (kt is the capital owned by a capitalist at
The rst order condition for this maximization problem
Economics Department 2006 Honors General Exam
Suggested Solutions for Micro Section
April 23, 2006
This question is about the impact of discrimination in the marketplace. You are expected to produce a
formal, mathematical model, not just to d
DEPARTMENT OF ECONOMICS
UNIVERSITY OF MISSOURI
Economics 4970 Senior Seminar in Economics
Section 1: Monday 3:30-5:30 p.m.
Section 2: Tuesday 3:30-5:30 p.m.
Physics Building 104
Major Field Test Tuesday, March 10
Section 1: 3:30-6 p.m., Section 2: 6-8:30
Macro Question 1
The (per capita) production function for the low technology is y = Ak a = k .5 , where y and k are
output and capital per worker respectively. The capital per worker changes according to the
following equation k = sAk a (n + )k = .1k
Macro Question 2
1. In the short run, an increase in productivity raises investment demand and,
therefore, shifts the IS curve outward. It raises the interest rate, r , and output, Y .
The price level, P , is fixed by definition.
Economics Honors Exam 2010 solutions
Macroeconomics (1011b), Professors Aghion and Laibson
Essay 1: Compare between the neoclassical and the Schumpeterian theories of convergence.
The neoclassical and the Schumpeterian theories dier both in the
Economics Honors Exam 2010 Solutions: Macroeconomics, Questions 4-5
Question 4 (Macroeconomics, 30 minutes).
This question asks you to
interpret various theories about the current recession using the IS-LM model, the
Phillips Curve, and the data below. Th
Micro Q 1
a. Denote H as the total available hours in a year. Denote w as the market hourly
rate. See Fig 1.
b. (i) The workers choice will not be affected by the policy change. (ii) Leisure
becomes less expensive, so substitution effect leads to more con
Economics Honors Exam 2008 Solutions Question 1
(2 points) The steel firm's profit-maximization problem is
max pss c s (s, x) = pss s2 + x x 2
Partial credit awards
0.5 points: for realizing that profit is revenue minus cost
0.5 points: for realiz
Review Section Questions
Morten Graugaard Olsen
April 14, 2009
Questions and Answers received since the review section
Question: What if the rate of growth of E was g instead of 0? How would we have solved part a for the steady
state income per worker a
Economics Honors Exam 2009 Solutions: Macroeconomics, Questions 4-5
Question 4 (Macroeconomics, 30 points). The relationship between China
and the United States is often in the news. To refresh your memory, here are four
facts about the Chinese economy:
Economics Honors Exam 2007 Solutions Question 3
(a) (8 points) The Edgeworth box is a rectangular diagram with consumer A origin on one
corner and consumer B origin on the opposite corner. The width of the box is the total amount
of good x, and the he