+++++++++++++++++++++++++++++++++++++++++++++++++++
Ask two questions:
1. What did I miss?
2. Why
did I miss the question?
The summary statistics for Midterm 1 (Spring 2012) are:
Points %
Min. 33 47.1
Median 56 80
Ave. 55.0 78.5
Max. 67 95.7
Number 35 35
Grade # Score % Score
A 63-67 >90 %
A- 61-62 87-89 %
B+ 59-60 84-86 %
B 56-58 80-83 %
B- 55 78-79 %
C+ 53-54 76-77 %
C
50-52 71-75 %
C- 43-45 61-65 %
D
38
54 %
F 33
47 %
Short Answer
1. Coase Theorem
a. TC High: Homeowner; TC Low: Homeowner
b. TC High: Airline;
TC Low: Homeowner with airline paying $800,000 <
X < $1,000,000
c. Efficient = lowest cost = 3 of 4. Is not affected by PR or TC.
Notes: what does efficient mean?
2. How does the change affect the returns to going to trial?
Unlikely to win: Decreases returns to trial -> less trials
Likely to win: Increaeses returns to trial -> more trials
Total: uncertain
Notes: Look at both sides--not just one! This is the heart of economics.
3. Data question. Do the data imply causality?
Omitted variable bias; selection bias
Notes: a few interpreted this as a regulation
question and I graded based on quality of that answer, but even for
regulation the first question you must answer is whether there is
a genuine effect.
4. JK Rowling
a. Copyright Infringement
b. Own, Infringe, and Harm -> MUST DEFINE
c. Plaintiff must show all elements to win.
d. Defendant: must argue at least one element to win and more if reasonable. Also, affirmative defenses.
e. Judge: Make a reasoned case based on a-d.
f. Injunctions, Compensatory Damages, Punitive Damages
Notes: Read the question: you must define (part b).
Don't just restate the word when you define. Also, when arguing for
plaintiff and defense provide specific evidence.
5. Private-Public Property
a. Costs: TC and monitoring;
Benefits: more investment, less overuse (T of C), usually more efficient--gains from trade
b. basic statement of MC vs. MB
c. Examples--sometimes people just gave an example but did not show how it was one or the other.
6. Eminent Domain
a. Definition
b. Socially efficient; avoid holdouts
c. Public use and just compensation
d. Public use to public interest then limiting public interest.
Summary:
1. Answer the question that is asked
2. Use legal terms (injunction, compensatory and
punitive damages) and economic terms (free rider, holdout, omitted
variable and selection bias)
3. Be internally consistent
4. When defining concepts don't only use the word you are defining.
5. When arguing a case use evidence that is
presented in the question. Do not rely on general arguments. Show
persuasively what supports elements.
+++++++++++++++++++++++++++++++++++++++++++++++++++
The summary statistics for Midterm 2 (Spring 2012) are:
Points %
Min. 36 47.1
Median 56.5 86.9
Ave. 55.8 85.8
Max. 65 100
Number 28 28
Grade # Score % Score
A 61-65 >93 %
A- 58-60 89-92 %
B+ 55-57 85-88 %
B 53-54 81-84 %
B- 51-52 78-80 %
C+ 50 77 %
C 47-49 72-75 %
C- 44 67 %
D
36
55 %
Short Answer
1. Trademark
Many scores 16-19; Very well done
Notes:
a. Read question: Be sure to define elements
b. Plaintiff: needs to argue all elements to win
Dates: 3/29-4/3
2. Two theories
a. Product differentiation, inelastic demand, brand identity leads to P>MC and quality less clear.
b. Decreases search and t-costs; more search breaks down market power, so P goes down and quality goes up.
Empirically b dominates a.
Notes: Nearly all got 8-10;
Dates: 4/5
3. Market failures
a. Public goods, externalities, information asymmetries, monopolies.
b. Necessary but not sufficient conditions.
Notes: I put this question on last and thought it
would be the easiest question because it comes directly out of notes,
we covered much of this at two different times in class, and is
material that is covered in many economics classes. Scores were the
worst--Scores ranged from 5-15 with many low scores.
Dates: 2/7-2/9; 2/21-2/23
4. Regulation
a. In Product Market: Decrease
in S lowers Q and increases P. Regulation raises costs on hiring and
lowers productivity in at least two ways. One is moral hazard (people don't work as hard when they cannot be fired) and two
is it is harder to get rid of low productivity employees.
In Labor Market: Decrease in D lowers wage and quantity of workers.
b. SR: not much change or decrease.
LR: increase in because of rationale in part a.
c. Because of higher costs, firms reduce
labor. May substitute capital for labor. Reduce wages and benefits. Move firms out of nation or go out of business.
d. Some better off (less chance of getting fired); some worse off (lower wages; less mobililty).
Notes: Most scored 11-13.
Read the question and make sure you answer all parts.
Dates: 2/21-2/23
Multiple Choice
8 points 14
6 points 5
4 points 6
2 points 3
Total 28 students
Summary--Huge Improvement
Try to answer the question in
the specific subpart, but you get credit for correct material as long
as it is in the answer somewhere.
22 students improved scores
only 6 students went down
percentage point change number of students
> +40
1
+21-25
2
14-17
5
10-13
3
7-9
5
2-6
6
-0.4
1
-9 to -12
4
-28
1