Old 4010 finalexam

Old 4010 finalexam - AP/ECON 4010: Advanced Microeconomic...

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AP/ECON 4010: Advanced Microeconomic Theory Final Examination Fall 2009 Time allowed: 2.30 hrs. SECTION A: Short answers. Explain briefly why each of the following statements is true, false or uncertain. Do any EIGHT. 5 x 8 = 40 1. Diminishing marginal rate of substitution implies that equilibrium consumption is always diversified. 2. Indirect utility function is homogenous of degree one in prices and income. 3. Ordinary demand for a good is always greater than its compensated demand. 4. A risk neutral person will never purchase insurance. 5. A pair of strategies, which is a Nash equilibrium in a simultaneous move game, need not be an equilibrium when the game is sequential. 6. If the production function is homogenous of degree one then the marginal products of the inputs must be constant. 7. A firm’s production function can always be inferred from its total cost function. 8. If profit function is convex, product supply function must be upward sloping. 9.
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Old 4010 finalexam - AP/ECON 4010: Advanced Microeconomic...

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