Greetings. Please write your name on the line above and write your quiz number but NOT your name on the cover of your blue book. You must turn in BOTH your test copy AND your blue book to receive a passing grade for the quiz.
    Please answer each of the quiz questions as well as you can. Available quiz points are distributed in proportion to the recommended time limits listed in the quiz. The recommended times sum to 45 minutes, but you will be given 55 minutes to complete the quiz. Do the best you can on each question, and keep in mind that plenty of partial credit is available.

    Don't forget the Oxy spirit of honor. Please do NOT discuss this quiz AT ALL until 2:30 this afternoon. Good luck!

  1. (8 minutes) Answer any one of the Cooperative Learning Lab (CLL) questions on the page attached to the end of this quiz.  (Available only at CLL.)

    2. (10 minutes) This question is based on the Sullivan case, covered in the supplementary readings selection, "A Divorced Spouse's Professional Degree: Is It Community Property?"
    a. Sketch a time path diagram which begins when Mark and Janet Sullivan got married and extends several years beyond their divorce ten years later. Use it to sketch (just a rough sketch is sufficient; you don't have to include any specific dollar amounts):
    (1) Mark's income stream if he had gone directly to work with the bachelor's degree he had at the time they got married; and
    (2) Mark's educational expenses and income stream resulting from his decision to go to medical school and become a urologist.
    b. Indicate where each of the following shows up in your diagram:
    (1) Mark's earnings "during a time span comparable to what it took to earn the degree." (Half of this amount is what the judge in the case initially awarded Janet Sullivan.)
    (2) What Mark can expect to "earn over a lifetime with the degree [minus]...projected earnings without it." (This is the alternative compensation formula presented in the article.)
    (3) The direct educational expenditures on tuition and books. (This is the amount allowed for compensation under California's "Sullivan law," passed during the appeal phase of this case.)
    (4) The economic (opportunity) cost for the Sullivans of their decision to have Mark pursue his urology career.
 
    3. (6 minutes) Consider the production possibilities curve depicted in the diagram to the right.
    a. What is the opportunity cost of the third gun?
    b. Make a rough sketch of the PPC in your blue book, and use your diagram to illustrate each of the following:
    (1) Temporary unemployment of some of the economy's resources.
    (2) Soil erosion which reduces productivity in the rose industry by 50 percent.
 
 

   4. (4 minutes) Use a supply and demand diagram to show an initial equilibrium in the labor market, and use your diagram to depict the consequences of life on Mars implied in the comic on the front page of the quiz.

    5. (9 minutes) Consider the attached article, "Taking Flight: Low-Fat Ostrich Meat Is Going Mainstream."
    a. Illustrate an initial equilibrium in the market for ostrich meat. Then in your diagram, illustrate the consequences of passages A and B from the article. Make the direction of the change in both quantity and price consistent with what the article says has been happening in the market.
    b. Briefly explain the reasoning underlying any curve(s) you shifted in part a.
    c. Although the article allows us to draw firm conclusions about how both equilibrium quantity and price have changed in this case, can we always be certain about both when your curve(s) shift in the direction(s) you've shown? Explain your decision.
    d. Briefly explain and illustrate in a supply and demand diagram for the meat and poultry market the potential concern underlying passage C in the article.

    6. (8 minutes) In the November election, California voters may pass a proposition legalizing the use of marijuana for medical purposes.
    a. Depict an initial equilibrium in the marijuana market in which the current demand is for recreational use only.
    b. Illustrate in your diagram what will happen in the market if the proposition passes.
    c. Briefly explain the impact of passage of the proposition on the quantity demanded of marijuana for recreational use, and use your diagram to support your answer.