Buec 280
Summer 1999
D. Maki
                           MIDTERM EXAMINATION

Instructions:  There are 12 questions on this examination,
all equally weighted.  Answer all questions.  For each
question, define the concept(s) underlined, and briefly
answer the question asked.

1.  What is the main difference between Pareto efficiency
and Kaldor-Hicks efficiency?  Does this have anything to do
with Occam's razor?

2.  If an individual chooses among alternatives by picking
the one with the highest net present discounted value, is
that person risk averse?

3.  Name three  consumption benefits from education.  What
impact do these have on social benefits?

4.  What does human capital theory say about the differences
in the costs and benefits of education for young people
versus older people?

5.  What do implicit contracts have to do with mandatory
retirement?

6.  In what sense do changes in wage rates and unemployment
have asymmetric effects on migration inflows and outflows?

7.  How do the income effect and substitution effect of
changes in annual earnings affect retirement age?

8.  Give two ways the Canada/Quebec Pension Plan differs
from most private pension plans.

9.  Why do labour demand curves for firms slope downward,
even if both the product market and labour market are
competitive?

10.  What is the main issue in the lockout of motion picture
projectionists?  What is the issue involving the U.S.-based
international union?

11.  It is claimed trade unions would like to influence the
elasticity of the demand for labour.  Why would they want to
do this, and how would they go about it?

12.  How can the general equilibrium effects of immigration
on the indigenous population offset the partial equilibruim
effects?