Economics 100b Wood Midterm 1
Name: ____________________________ SID : ____________________________ GSI: ____________________________
Econ 100B Macroeconomic Analysis
Professor Steven Wood
Spring 2010
Exam #1 ANSWERS
Please sign the following oath: The answers on this test are entirely my own work. I neither gave nor received any aid while taking this test. I will not discuss the questions on this test until after 5:00 p.m. on February 23, 2010. ______________________ Signature Any test turned in without a signature indicating that you have taken this oath will be assigned a grade of zero. Exam Instructions
1. 2. 3. When drawing diagrams, clearly and accurately label all axis, lines, curves, and equilibrium points. Explanations should be written in pencil or black. Legibility is a virtue; practice good penmanship. Explanations should be succinct and to the point; you may use bullet points and commonly used mnemonics.
Do NOT open this test until instructed to do so. Good Luck!
Spring 2010 (Exam #1)
Econ 100B
1 of 11
A. Multiple Choice Questions (30 points). Circle the letter corresponding to the best answer. (3 points each.) 1.
Your boss wants to know if the company should lay off any workers. You answer that they should lay off workers only if the: a. b. c. d. Marginal product of labor is less than the real wage rate. Marginal product of labor is greater than the real wage rate. Marginal product of labor is less than the nominal wage rate. Marginal revenue product of labor is greater than the nominal wage rate.
2.
Originally an unskilled worker, Judy attends the University of California, Berkeley where she acquires new skills that give her access to a job with a higher hourly wage. Assuming that her preferences about leisure are not affected by the change in jobs, how would this affect her supply of labor? a. b. c. d. Judy will supply more labor due to both income and substitution effects. Judy will supply less labor because her decision is based only on the
Econ 100B Macroeconomic Analysis
Professor Steven Wood
Spring 2010
Exam #1 ANSWERS
Please sign the following oath: The answers on this test are entirely my own work. I neither gave nor received any aid while taking this test. I will not discuss the questions on this test until after 5:00 p.m. on February 23, 2010. ______________________ Signature Any test turned in without a signature indicating that you have taken this oath will be assigned a grade of zero. Exam Instructions
1. 2. 3. When drawing diagrams, clearly and accurately label all axis, lines, curves, and equilibrium points. Explanations should be written in pencil or black. Legibility is a virtue; practice good penmanship. Explanations should be succinct and to the point; you may use bullet points and commonly used mnemonics.
Do NOT open this test until instructed to do so. Good Luck!
Spring 2010 (Exam #1)
Econ 100B
1 of 11
A. Multiple Choice Questions (30 points). Circle the letter corresponding to the best answer. (3 points each.) 1.
Your boss wants to know if the company should lay off any workers. You answer that they should lay off workers only if the: a. b. c. d. Marginal product of labor is less than the real wage rate. Marginal product of labor is greater than the real wage rate. Marginal product of labor is less than the nominal wage rate. Marginal revenue product of labor is greater than the nominal wage rate.
2.
Originally an unskilled worker, Judy attends the University of California, Berkeley where she acquires new skills that give her access to a job with a higher hourly wage. Assuming that her preferences about leisure are not affected by the change in jobs, how would this affect her supply of labor? a. b. c. d. Judy will supply more labor due to both income and substitution effects. Judy will supply less labor because her decision is based only on the