8/10/2019 Midterm Practice SOLUTIONS

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_________________ __________________LAST NAME FIRST NAME

PRACTICE Midterm(Answer Key)

GLECSUMMER 2014Prof. Max Croce

Important Notes:

You are allowed 2 ours to !omplete t is e"am#

All of your a !"er! #u!$ %e &ro'()e) ( $*e !&ace allo$$e) %elo" eac* +ue!$(o . A y$*( , ou$!()e$*(! "(ll o$ %e ,ra)e). I all ca!e! $*e !&ace &ro'()e) (! !uff(c(e $ for a &erfec$ !core.In$ormation t at is in!orre!t or not pertinent to t e %uestion will result in a redu!ed s!ore#

-ou #ay u!e ou$!()e &u%l(!*e) #a$er(al a! "ell a! cla!! o$e! $o a!!(!$ you ( your a !"er!. -ouare o$ allo"e) a!!(!$a ce fro# a y ( )('()ual !/.

P(c $*e %e!$ !( ,le a !"er $o $*e #ul$(&le c*o(ce +ue!$(o !.

No e of $*e +ue!$(o ! are )e!(, e) $o $r(c you. 3o"e'er !o#e of $*e +ue!$(o ! you *a'e !ee %efore %u$ "($* (#&or$a $ )e$a(l! $*a$ are )(ffere $55!o )o o$ 6u!$ &u$ )o" fa#(l(ar a !"er!7

-our exa# !*oul) *a'e 888 u#%ere) &a,e!.

G99: LUC;7

3o or Co)e A,ree#e $. T*e )e#a ) cur'e of la%or !*(f$! $o $*e lef$ (.e. ($ co $rac$!/ %ecau!e #ore "eal$* al"ay!

(#&l(e! lo"er &ro)uc$('($yC. T e supply !ur0e o$ la/or s i$ts to t e le$t (i#e#, it !ontra!ts) /e!ause o$ in!ome e$$e!t:

people re%uire i- er wa-es as t eir opportunity !ost o$ leisure is i- er:. T*e !u&&ly cur'e of la%or !*(f$! $o $*e r(,*$ (.e. ($ ex&a )!/ %ecau!e of !u%!$($u$(o effec$!er a e ca )(rec$ly $a e o'er &r('a$e %a !.

H. U!( , our !(#&le #o)el of $*e #o ey #ar e$ !u&&o!e $"o $*( ,! *a&&e