spring2008_final

spring2008_final - Econ 150b: Intermediate Microeconomics...

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Unformatted text preview: Econ 150b: Intermediate Microeconomics Final Examination March 5, 2008 Please put your discussion-section time and TAs name on the blue books. You have three blue books plus one for scratch. First blue book for questions 1, second blue book for question 2 and third blue book for questions 3 and 4. The exam is 120 minutes long. Good luck! 1. (30 points.) Consider a pure exchange economy with two goods, labeled 1 and 2, and two consumers, labeled A and B . Write .! A 1 ; ! A 2 / and .! B 1 ; ! B 2 / for the endowments of con- sumers A and B , respectively. Suppose the consumers have utility functions u A .x A 1 ; x A 2 / and u B .x B 1 ; x B 2 / , which are smooth and concave (i.e., indifference curves are convex). (a) (5 points.) Define feasible allocation and Pareto efficient allocation . (b) (5 points.) State the characterization of Pareto efficiency in terms of a maximization problem....
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spring2008_final - Econ 150b: Intermediate Microeconomics...

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