Elements of Microeconomics, Summer II 2013
Homework 1
1. You win $100 in a basketball pool. You have a choice between spending the money
now or putting it away for a year in a bank account that pays 5% interest. What is
the opportunity cost of spending th
Bruce Hamilton
[email protected]
430A Mergenthaler
Tuesday 7-9:30
Wednesday 10:30-12
Thursday 11-12 and 1-2
Microeconomics is the study of making the best of a bad situation (or how we fail
to do so)
o Bad situation nature has not blessed us with eno
Elements of Microeconomics, Summer II 2013
Homework 2
1. A rm uses two inputs in production: capital and labor. In the short run, the rm
cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the rms
Vusala Safarova
1. Explain how the following transactions affect GDP:
a. Starbucks sells a cup of coffee
The GDP increases by the price of the cup of coffee multiplied by the quantity of coffee (in this case 1
cup @ apprx. $4).
b. At the end of the 2015 Q
Elements of Microeconomics Spring 2011
180.102
Bruce W. Hamilton
Texts: Economics, by N. Gregory Mankiw 3rd, 4th or 5th Edition. Chapter numbers are the same
for all editions. Page numbers are given as follows: Pp 5th [4th] (3rd)
Economic Efficiency and M
Elements of Microeconomics, Summer II 2013
Homework 3
1. Mayor Bloomberg thinks that New Yorkers drink too much soda. To reduce the amount
of soda consumed, he imposes a $.50 tax on each gallon of soda sold.
(a) Should he impose the tax on producers or co
2. Larry, Curly, and Moe run a monopoly. Larry wants to sell QL, which is where prot
2 0. Curly wants to maximize revenue with out thinking about costs, so he wants to
sell QC. Moe wants to maximize prots, so he chooses QM, which is where MR=MC.
assume e
Elements of Microeconomics, Summer II 2013
Homework 2 Solutions
1. If the cost of renting capital increases, the average xed cost rises. Since average
total cost = average xed cost + average variable cost (ATC = AFT + AVC),
the average total cost curve in
Elements of Microeconomics, Summer 11 2013
Homework 3 Solutions
1. (a) It does not matter who he imposes the tax on the outcome is the same.
Tax on ConSu,VV\$1J/S 10 0" arms/3'
S.
17
. . . 1' . .
(b) If the demand curve 1s elastlc, then we know that con
Elements of Microeconomics, Summer II 2013
Homework 4
NOTE: The topics covered in this assignment are monopoly, monopolistic competition,
oligopoly, and externalities. A few additional problems from Monday and Tuesdays lecture will be posted Monday evenin
Elements of Microeconomics, Summer II 2012
Homework 4b
You are not expected to turn this homework in. We will do these problems in class on
Wednesday, July 31. It would be benecial to you if you went over the problems before
class, so you are able to acti
Name:
Elements of Microeconomics, Summer II 2013
Midterm July 16, 2013
Please write your name on each page that you use. Be sure to label all graphs and clearly
state any assumption you make in order to solve the problem. If any calculations are needed,
t
Chapter 1
Producers
1.1
The Production Possibilities Frontier
In this chapter I shall use a simple model to examine how a single producer
makes supply decisions. I consider a more realistic model in chapter 4, but
for the moment I shall assume that there
<52 0' 61
The graph above shows the market demand curve for some good, as well as the long-run average cost
(LRAC) for producing the good.
3. Where is the Long run Marginal Cost Curve? Explain.
ll-i ii; ' in 3" if '11 a U3? ri -+ In iW 10" wimmfm (0 fun
Laws of economics must be determined scientifically, but you cannot manipulate a
countrys laws and policies to see what happens
Economists look at history to see what happens in certain situations
Circular flow-between households, markets for production f
PPC is bowed out because of specialization
Shows the maximum output of 2 goods when all resources are utilized
Specialization allows for more relative production from the same resources
Supply curve is a graph that shows how much product will be supplied
Econ chapter 1
Scarcity-limited resources
Economics-the study of how society manages scarce resources
People face trade-offs in what to do, and how to act and spend
Efficiency-when society gets the most from its scarce resources, usually involves
inequali
Part 2&3: Write-up limited to 10 pages of text with 10 pages of supporting tables. Please use
a font size of 12 and 2.5cm margins.
Due: Lecture 11 2.
Prospective Analysis (15 marks) Forecast future financial performance. Use the four
valuation models outl
monthly interest rate
effective monthly interest rate
true APR
effective annual interest rate
10%?
Is this a 16 percent loan?
effective monthly interest rate
true APR
effective annual interest rate
No
15/20
the monthly rate is not 10%
11%
133%
254%
it is
Levels of
Packaging
Description and Examples
All SKUs require Retail Card Packaging. This is provided by Goodys prearranged partner at a fixed price.
Some SKUs require Additional Packaging such as blister or twist ties to secure product to the retail card
Macroeconometrics - Online
Contact Information
Instructor:
Email Address:
Allan D. Brunner
[email protected]
Course Description
The objective of this course is to study econometrics as it is applied in modern
macroeconomics. The focus is on time-ser
Problem Set 3
Julio E. Diaz
Please show all work. Additional non graded homework problems that you should
review in your course textbook include problems 6.1, 6.3, 6.5, 6.10, 6.11, 7.18.
1. A Treasury bond with a coupon of 5% matures on November 15 is quo
INTERNATIONAL SCHOOL OF HYDERABAD
IB Psychology Internal
Assessment [HL]
The Stroop-Shape Effect
The Stroop-Shape Effect: Is there a difference in the time taken for shape recognition, in
congruent and incongruent shapes and words?
Student N
Consumer Optimization
_
Problem: Maximize U (C, l)
subject to C = w (h l) + T
First, form the Lagrangian:
L = U(C, l) + [w(h - l) + T C]
Taking the first-order conditions with respect to the endogenous variables, C, l, and
yields:
(1)
L / C = U1 (C, l) =