hw2f11-1 - Print name_ _ Sign name TA and Recitation time _...

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Print name_______________________ Sign name ________________________ TA and Recitation time ___________________ Econ 520 F11 Homework 2 9/27, 9/29, due 9/30 For full credit, show your calculation and give a numerical answer on each computational question. 1. (15 homework points) In the space provided, show a series of exchanges in which commodity “ b ” could serve as a medium of indirect exchange in an economy with three individuals A, B, and C, endowed with one unit of commodity “a”, “b”, and “c” each, respectively, and in which preferences are given as shown: Person Preferences Initial Intermediate Final Endowment position position A c > a > b a B a > b > c b C b > c > a c Which person would use commodity b as money? _____ 2. (10 homework points). On Friday 9/23/11 Gold was selling for $1659/troy oz., while silver was $31.00/troy oz., for a ratio of about 53.5:1. If the US were now to adopt a bimetallic standard with the Jacksonian mint ratio of 16:1, while the world price ratio
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This note was uploaded on 11/20/2011 for the course FINANCE 640,722 taught by Professor Chabiyo,reeves during the Fall '11 term at Ohio State.

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hw2f11-1 - Print name_ _ Sign name TA and Recitation time _...

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