ECO200Y1 Study Guide - Midterm Guide: Easy Pieces, Production Function, Adobe Freehand
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ECO200Y1 Full Course Notes
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There are 6 questions of unequal value: yes or no + five easy pieces, wally the worker, harry"s hockey trophy, tom and jerry"s uncertain future, theory of the firm, multiple choice. Be sure to show all steps in your work for a full grade (except y/n and mc). Yes or no and five more! (20 marks) (10) for each of the statements below, indicate if you agree (yes) or disagree (no). Select the best answer, keeping in mind, of course, the assumptions and models we have developed in class: consider the two-period consumption model, with consumption in both periods being normal goods. The consumer has traditional convex indifference curves (cobb douglas utility function) and is currently a borrower. If the rate of interest falls, both the substitution effect (se) and the income effect (ie) lead to more borrowing. Yes no: for wanda the worker, leisure is a normal good and she has the traditional convex indifference curves.
