ECON1210 Introductory Microeconomics

Final Examination

This version of the exam paper is for the following student only:

> > Ka-fu WONG (UID=9012345678) < <

Read the following instructions carefully!

We expect students to finish all multiple choice and short-answer questions (71 of them) in 120 minutes, i.e., slightly fewer than two minutes per question. Try not to allocate much more than 2 minutes to any single question. Please also try to work on the apparently easier questions first. This strategy should help you lower the risk of losing a lot of marks by getting stuck on one or two of the more difficult questions.

Please TYPE your answer in the Microsoft Excel file provided. Please use Microsoft Excel to open and edit the file! As soon as you download the provided Excel file, rename the file to

> > > Final_9012345678.xlsx < < <

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> > > Final_9012345678.zip < < <

Then, upload your zip file to our moodle exam page within the next 15 minutes.

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A penalty of 1 point will apply to every additional ONE minute beyond this allowable timestamp.

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to rush your submission.

A penalty will also apply if the above general instructions (including the required file type, the required filename, etc.) are not followed closely.

SCORING: One point for the correct answer(s) in each question.

● For multiple choice questions, points will be deducted for wrong answers depending on the number of choices given in the question. When there are n choices, 1/(n - 1) point will be deducted for wrong answers, such that picking an answer randomly will yield zero expected points. For example, when

there are 5 choices, 1/4 (i.e., 0.25) point will be deducted for wrong answer. We recommend that you DO NOT guess unless you can eliminate 1 or more choices.

● For short-answer questions, one point is awarded if all answers within the question are correct, zero otherwise.

NO CHEATING PLEASE!! This is an open book test. You can refer to any materials relevant to the exam, and use any calculator and computer resource. But, you should not work in a group or consult any human during the test. To prevent cheating, each student is given a unique version of the test.

1.  My university ID number is [ Answer01 = 9012345678 ].

2.  Maggie would like to attend a three-hour singing class for which she has to pay a fee of $234. Her benefit from the singing class is $666. If she does not go to the class, she can sing for three hours in a peformance with an hourly wage of W dollars per hour. Or she can watch The Voice on TV, for three hours for free, which she would be willing to pay a total of $221 to watch. Assume there are no other costs or benefits for the above events. Maggie should attend the singing lesson if W is [ Answer02A = A ] (A. less / B. more) than or equal to [ Answer02B = 144.00 ].

Please refer to the background information below to answer the following two questions.

The government hires workers to give vaccine doses at three Community Vaccination Centers: “CVC-A”, “CVC-B” and “CVC-C”. The major decision is the allocation of the workers among the three CVCs, so as to maximize the amount of doses given. The following table shows the amount of doses that will be given in these CVCs as a function of the number of workers deployed.  For instance, when 2 workers are sent to CVC-C, a total of 439 doses will be given there.

3.  Suppose 8 workers are hired. To maximize the number of doses given, the government should allocate [ Answer03A = 3 ] workers to CVC-A, [ Answer03B = 2 ] workers to CVC-B, and [ Answer03C = 3 ] workers to CVC-C.

4. Now suppose the government wants to give 2004 doses.  The government always allocates the N workers among the three CVCs to maximize the amount of doses given. According to the government’s allocation rule, in order to given at least 2004 doses, N must be at least equal to [ Answer04 = 10 ].

5.  Olivia, Ryan, Kate and Joan can produce scarves and hats. The table below shows their time required to produce a scarf and their time required to produce a hat (in minutes).

Assume they work eight hours per day.  If we let the two people with a comparative advantage in producing scarves to specialize in the production of scarves, and the rest to produce hats, we will have a total of [ Answer05A = 72.00 ] scarves in a day and [ Answer05B = 324.41 ] hats in a day.

6. In an hour, Frank can shoot either 10 partridges or 240 sparrows, and Annie can shoot either 4 partridges or 160 sparrows. Suppose Frank has a total of 3 hours for work and Annie has 4 hours. Suppose Frank and Annie will make consumption and hunting decisions together. If they are going to consume 24 partridges in total, they will produce [ Answer06 = 784.00 ] sparrows.

Please refer to the background information below to answer the following three questions.

Robinson and Friday are the only people on Despair, a small island. They both produce grain and meat.

Let G denote the quantity of grain, and M denote the quantity of meat. The following equations summarize their production possibility curves (PPCs) per week.

7.  Suppose Despair is a closed economy. If Robinson and Friday would like to jointly consume 16 units of meat per week, they would be able to jointly consume a maximum of [ Answer07 = 40.00 ] of grain per week.

8. In this closed economy, any admissible terms of trade between Robinson and Friday have to be larger than [ Answer08A = 7.00 ] units of grain per unit of meat and smaller than [ Answer08B = 8.00 ] units of grain per unit of meat.

9.  Suppose Despair is now opened up to trade with the rest of the world, and can trade at world terms of trade of 9.5 units of grain per unit of meat. If Robinson and Friday would like to jointly consume

16 units of meat per week, they would be able to jointly consume a maximum of [ Answer09 =

47.50 ] units of grain per week.

Please refer to the background information below to answer the following two questions.

The demands for rocket fuel (tons per day) by SpaceY and SpaceZ are given by the following equations

SpaceY:    QA = 1900 - 1.6P

SpaceZ: QB = 2000 - 1.8P

10. We know that the market demand (consisting of SpaceY and SpaceZ) should look like the graph below.

We can identify the three points as:

x-coordinate                                y-coordinate

Point A:                          0 [ Answer10A = 1187.50 ] Point B: [ Answer10B = 122.22 ] [ Answer10C = 1111.11 ] Point C: [ Answer10D = 3900.00 ] 0

11.  Given this market demand for rocket fuel, at the price of 50 dollars per ton, the consumer surplus in this market is [ Answer11 = 2048486.11 ] dollars per day.

12.  Consider the market for salmon. Two events happened recently.

We can predict [ Answer12A = C ] in the equilibrium price

A)  an increase

B)  a decrease

C)  an uncertain change

and [ Answer12B = A ] in the equilibrium quantity.

A)  an increase

B)  a decrease

C)  an uncertain change