Public E conomics 14.41

Fall 2009

Sketch of Midterm Solutions

Professor Jonathan Gruber

October 28, 2009

Solutions are NOT comprehensive, in that many valid solutions are omitted.

- L n Aerms oC ; ~ c e c i ; ~ e s do Ahe y o / / v f ; 3 C;rr/l/ +he approfiches e r e e u ; vqlerL+, TL+ is, q g ~ / u a i +

i svbi iJy O L ~b&e$n-/-- preieb i / oc io

V . - H o u e u e r I C O J ~ ~ ~ ~ L I L r r ct nrn my nd ex;& 4 9 3 'vcaz

A"i3"hehS em CddefM; h;oq ex.tr'd; o q I-,qdr & -P;m),

So,

f I . :QCC-I~~. - Yes, / P r ~ 4 e q n c C\ I ~ A A j p r e C e ~ e r . c e r ~ r c

ahr

3

s f hgle- ps-hd, w e cox 1 fiv0iTe 4 Medie& V ( ~ C T

4 4

E P ~ ; ~ - u ' I ( = i ~ d f ; ~ bJ/ )3C-#k L /'I t\ ~ ~ L ~ C / C ~ L C CSC tL ned;&n

. zk v&-, - -/hi/ [arc CO ~ ' l d e f = L v-r r / l =>M u l n i h 6ur&dl & => p-zl /q ,JI H =>fl w ih f

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14.41 Public Finance and Public PolicyFall 2010

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