5. In each situation below, identify the random variable as either discrete or continuous.
(a) An experiment consists of having a mechanical pitching machine pitch baseballs to Albert
Pujoles (famous baseball player), and X is the random variable that mea
5. The Venn diagram below shows ten sample points having the following probabilities:
P (1) = P (2 ) = .05, P (3 ) = P (4) = .08, P (5 ) = P (6) = P (7) = .1,
P (8) = P (10) = .12, P (9 ) = .2.
Consider the events E = cfw_1 , 2 , 3 , 4 , 5 , F = cfw_4 , 5
Midterm 1
October 6th, 2008
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 na
8. Suppose a person has the following utility function:
maxcfw_Df, Dc
a ln(Df) + b ln(Dc)
subject to:
PfDf + PcDc = V
What is the expression for an optimized Dc?
a.
b.
c.
d.
Dc = aV/(a+b)
Dc = bV/(a+b)
Dc = a/[(a+b)V]
None of the above
Part II: Short Answ
Atlantis
Rest of the world
(ROTW)
P
P
Q
P*
Q*
Q*
If instead of an export subsidy that is largely banded by the World Trade Organization, Atlantis subsidizes
the entire domestic grain industry.
1.
Shift the appropriate curve [2 points]
2.
Based on (1), dra
g. Add a consumption possibilities frontier that is consistent with this.
Answer:
Straight line connecting X & C.
Points: 6
Straight: 2 point
Through the correct points: 2
Outside the PPf except at point C; 2points
h. Is the United States better off at po
Fall 2014
Homework #4:
From the text:
3.51, 3.54, 3.63, 3.64, 3.66, 3.67, 3.68, 3.69, 3.72, 3.75
4.1. In a box there are 100 marbles of which 95 are red and 5 are green. An experiment is to be
performed in which two of these marbles are selected at random
No need to show your work for the following.
5. U.S.s demand curve for grain is:
QD = 200 40P
Its supply curve is
QS = 40 + 40P
ROTWs demand curve for grain is:
QD* = 160 40P
Its a supply curve is
QS* = 80 + 40P
What are the equilibrium quantities in the
c. The world trade ratio is 4 units of Hotel for one Software unit. Add Dubais
Consumption Possibilities Curve to your graph in part a.
d. Is Dubai better off with trade? Explain.
e. Assume trade is no longer available.
Since jobs related to software deve
7. Suppose the current price of coffee is $2 a cup and 1,000 cups are sold per day. A
tax of 50 cents per cup of coffee would raise:
a.
b.
c.
d.
Exactly $500.
At most $500.
At least $500.
Less than $500 as long as demand is downward sloping.
8. A subsidy
Q2: Grain Subsidy
Atlantis
P
Rest of the world
(ROTW)
P
S
P*
S*
ES
Subtract this tra
for PS in (3)
ES with
subsidy
CS
Pw
ED
PS
D
)
D*
Q
Qw
Q*
Q*
1.
Draw the excess supply and excess demand curves with the correct intercepts. Label the world price
and worl
Midterm 1
October 13, 2007
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 nam
Midterm 1
February 17, 2009
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 na
3. The country of Sweetland can produce candies and shoes. We know that
Sweetland exports candies to the rest of the world and import shoes. If we know
the Production Possibilities Frontier (PPF)of Sweetland is linear (a straight line),
what can we say ab
Software by Techies & servers: 1 point
c. The world trade ratio is 4 units of Hotel for one Software unit. Add Dubais Consumption Possibilities Curve to your graph in part a.
Answer:
It is a straight line from (6,0) to (0,24).
At this price ratio Techies
Straight line: 1 point
Starts at correct point: 2 points
Is above PPF: 2 points
In the last decade, Tuscany has faced a sizeable wave of immigration from China. These
Chinese workers are all identical to each other. They can be employed for the production
4. Compared to the equilibrium price and quantity, which of the following changes could
cause the price to increase and the quantity to decrease in the market for sneakers?
a. New technology makes the production of rubber (an essential component of
sneake
Part II:
Q2. (35 points). Please write your answer in bluebook #2.
Note: at the end of this question you should have at least 3 different graphs.
Subsidies to the corn production account for nearly 35% of all agricultural subsidies paid
by the U.S. Govern
6. Suppose the producer is facing a downward-sloped linear demand curve. If the
producer has power to set the price and wants to maximize revenues, he will choose the
price where demand is _.
a.
b.
c.
d.
elastic
inelastic
unit elastic
without further info
Q2.
Consider the market for used laptops. Suppose that it is described by the following
demand function:
Pd= 22-3Q-2 I
where P is the price of laptops, Q is the quantity demanded of laptops and I is income .
Also, suppose that the supply of laptops is giv
Midterm 1 Answer Key
February 7, 2006
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 Instr
Midterm 1 Answer Key October
10, 2006
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 Instr