Economics 2106H - Principles of Price Theory
Midterm 1 Information Page
David B. Mustard

Last Updated 9/10/18 

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Content: The test will cover readings (textbook and extra readings) and lectures through Mon. Sep. 7. See the course outline for details. I try to emphasize on exams the things I emphasize in the lectures and readings.

    The questions that will be primarily drawn from the following broad topics. 
Because some questions overlap sections, there is no way to perfectly allocate points to individual sections. Therefore, this is best viewed as a guide for allocating your time rather than a precise contract of how questions will be asked. The tenative assignment of points follows. I realize that these don't add up to 50 as some questions test multiple concepts. 
    1. Introduction to Price Theory (Chapters 1 and 2):             x points (very few points, if any)
Demand and Supply (Chapter 4):                                   15 points
Elasticities (Chapter 5):                                                  15 points
    4. Consumer Choice and Efficiency (Chapter 7):                  10 points
    5. Price and Quantity Controls (Chapter 6; other reading):     12 points
    6. Taxes and Subsidies (Chapter 6 only):                              8 points (will not cover subsidies; will not include a long mathematical problem on taxes)

       Chapters 8 and 12 will not be covered.

    The test will have 45-50 points. The sum of points above may contain more than 50 points because many of the questions have overlapping partsYou will have 50 minutes to complete the exam.

    1) Print out web outline and go through the topics systematically. This will also help you target your reading.
    2) Think before you write. It is to your benefit to outline the answer before writing it out in detail.
    3) Be clear and organized--reduce the transactions costs of grading.
    4) Answer the question that is asked.
    5) If there are subsections to a question, arrange your answers by subsection.
    6) Write questions for yourself or others. 
During exam:

    You can write directly on the question sheet and will not need additional paper.
    You may bring a regular calculator with basic functions only. Graphing calculators are not allowed.

Types of questions I could ask:
    1) T, F, U & Explain: I make an assertion and you must indicate whether it is true, false or uncertain and explain why. Most of the points are given for your explanation, not your answer about whether it is true or false.
    2) Multiple choice
    3) Analyzing Markets

    4) Be able to answer questions with numbers, graphs, and words
    5) Questions from readings - you should be able to provide a coherent overview of the main arguments from the readings.
    6) Extensions of ideas and principles we discussed in class

Midterm Grading Policy
You are required to take the midterms unless you have some justifiable excuse, such as a personal illness or family emergency. If a student has an emergency and will be unable to take the midterm at the assigned time, you should talk to me as soon as possible--before the midterm. After discussing your situation I may permit a make-up exam. Each student will be permitted at most one make-up exam during the semester. In the event of a make-up exam, students are forbidden from either providing or receiving information about the exam. Students who violate this will receive a score of "0" for that midterm.

    If you would like your test to be regraded, please submit to me your exam and a note that explains why you believe your test was miscored. All requests for regrading must be received no more than one week from the day I return your exams.