中级微观经济学试题2.doc

Intermediate Microeconomics Mid-term Test 2005 (B) Name: Student No.: Class: No. 1 2 3 4 5 6 7 8 9 10 Answer No. 11 12 13 14 15 16 17 18 19 20 Answer No. 21 22 23 24 25 26 27 28 29 30 Answer Section 1 True or false.（20 points, 2 points each） 1. Alices utility function is U(x, y) = x2y. Steves utility function is U(x, y) = x2y + 2x. Alice and Steve have the same preferences since Steves utility function is a monotonic transformation of Alices. 2. A consumer who can borrow and lend at the same interest rate should prefer an endowment with a higher present value to an endowment with a lower present value, no matter how he plans to allocate consumption over the course of his life. 3. If two assets have the same expected rate of return but different variances, a risk-averse investor should always choose the one with the smaller variance, no matter what other assets she holds. 4. Fred has a Cobb-Douglas utility function with exponents that sum to 1. Sally consumes the same two goods, but the two goods are perfect substitutes for her. Despite these differences, Fred and Sally have the same price offer curves. 5. If all prices double and income triples, then the budget line will become steeper. 6. If someone has a Cobb-Douglas utility function and no income from any source other than labor earnings, then an increase in wages will not change the amount that person chooses to work. 7. Susan is a net borrower when the interest rate is 10% and a net saver when the interest rate is 20%. A decrease in the interest rate from 20% to 10% may make Susan worse off. 8. With quasi-linear preferences, the equivalent variation and the compensating variation in income due to a price increase of one good are the same. 9. For a consumer who has an allowance to spend and no endowment of goods, a decrease in the price of a Giffen good consumed makes him better off. 10. The marginal rate of substitution measures the distance between one indifference cur