Exam 1
Women and the Economy Econ 3090 Spring 2015
Exam 1 1. In this course, we rely on an approach in neoclassical economics called constrained optimization, which can be described as:
a. cost minimization with constraints
b. making choices that will maximize wellbeing, with the choices limited by constraints, such as a time constraint or budget constraint
c. making choices that maximize utility when prices and quantities are constrained
d. minimizing expenditures on consumer goods
2. According to the textbook, one of the reasons that economists have become interested in studying women’s behavior is that women are more interesting! Why might economist feel this way, according to the textbook and class?
a. economic choice models are most useful when studying choices that vary over time and across individuals
b. Researchers can get better data on long haired workers
c. womens marriage choices are not influenced by economic factors
d. men do not appear to make choices rationally
e. none of the above
3. When economists assume that individuals are rational, they mean that individuals
a. do not make choices that seem selfdestructive
b. have information and make consistent, purposeful choices
c. have information and make choices that focus only on investing in the future
d. none of the above
The following is an example of a constrained optimization model, Use this model to answer the
4 questions that follow. Maximize Utility = U(F,C) subject to budget constraint (that states that the individual cannot spend more money on F and C than she has available to her). Note that F stands for food and C stands for clothing and Pf is the price of food while Pc is the price for clothing. 4. In this model, Pf is an exogenous variable, meaning that
a. individuals choose this price
b. it is a dependent variable
c. individuals treat prices as “given” (i.e out of their control) when making their
“best” choices of F and C.
d. is is unknown to the consumer
Exam 1 1. In this course, we rely on an approach in neoclassical economics called constrained optimization, which can be described as:
a. cost minimization with constraints
b. making choices that will maximize wellbeing, with the choices limited by constraints, such as a time constraint or budget constraint
c. making choices that maximize utility when prices and quantities are constrained
d. minimizing expenditures on consumer goods
2. According to the textbook, one of the reasons that economists have become interested in studying women’s behavior is that women are more interesting! Why might economist feel this way, according to the textbook and class?
a. economic choice models are most useful when studying choices that vary over time and across individuals
b. Researchers can get better data on long haired workers
c. womens marriage choices are not influenced by economic factors
d. men do not appear to make choices rationally
e. none of the above
3. When economists assume that individuals are rational, they mean that individuals
a. do not make choices that seem selfdestructive
b. have information and make consistent, purposeful choices
c. have information and make choices that focus only on investing in the future
d. none of the above
The following is an example of a constrained optimization model, Use this model to answer the
4 questions that follow. Maximize Utility = U(F,C) subject to budget constraint (that states that the individual cannot spend more money on F and C than she has available to her). Note that F stands for food and C stands for clothing and Pf is the price of food while Pc is the price for clothing. 4. In this model, Pf is an exogenous variable, meaning that
a. individuals choose this price
b. it is a dependent variable
c. individuals treat prices as “given” (i.e out of their control) when making their
“best” choices of F and C.
d. is is unknown to the consumer