# L26 - Exam L26 Review On 15th of May, 10:05 a.m. room:...

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1 L26 Review Exam ± On 15 th of May, 10:05 a.m. room: ± Cumulative 25-25-50 (I know it is a lot of work!) ± 2 hours (120 min) ± Closed book (calculators not needed) ± Format: Problems as in PS (no true false q) ± Course Grade: 25-20-20-35 (+adjustment) Curve ± Preparation 1. Master all PS 2. Read slides (see Review Slides!) 3. Read book ± Be concise (no more words than needed) Consumer’s Theory Fix (parameter) ± Budget set (plot, interpret slope) ± 4 types of preferences (plot, find interpret MRS) ± Optimal choice (SoH, find analytically and geometrically) ± Magic formula for Cobb-Douglass! (derive it) Changes in p and m ± Substitution and Income effect ± Ordinary and Giffen, Inferior and Normal goods Real endowments (choice) ± Geometric representation ± Choice – buying and selling 12 1, 10 ppm == = (, ) Uxx 3 applications ± Labor market - labor supply: w given Budget set, Choice, Labor Supply, Elasticity ± Intertemporal Choice: r given 1) 2 periods: Budget set, Choice, Savings, PV, FV, 2) T periods: Annuity and perpetuity: PV formula

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## This note was uploaded on 06/04/2011 for the course ECON 301 taught by Professor Hansen during the Spring '08 term at Wisconsin.

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L26 - Exam L26 Review On 15th of May, 10:05 a.m. room:...

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