14.02 PRINCIPLES OF MACROECONOMICS
QUIZ 3
05/10/2012
PROFESSOR: FRANCESCO GIAVAZZI
NAME:
FRIDAY RECITATION:
1. True/False/Uncertain [30 points]
Please state whether each of the following claims are true, false or uncertain, and provide
a brief justication
14.02 Quiz 3
Time Allowed: 90 minutes
Fall 2012
NAME:
MIT ID:
FRIDAY RECITATION:
FRIDAY RECITATION TA:
This quiz has a total of 3 parts/questions. The rst part has 13 multiple choice questions where you should
select what you think is the best answer from
14.02 QUIZ 2, Spring 2012
Time Allowed: 90 minutes
Name (please print):
Recitation time (please circle one): 9am, 10am, 11am, 1pm, 2pm, 3pm
1.Short Questions (7 points each):
Determine whether each of the following statements is True, False or Uncertain.
*Note that we decide to not grade #10 multiple choice, so your total score will be out of 97. We thought
about the option of giving everyone a correct mark for that solution, but all that would have done is to
increase everyones score by 3 points. In the
14.02 Quiz #3
Spring 2014
Time Allowed: 90 minutes
Name:
MIT ID:
Friday Recitation (time):
Lecturer (who teaches you on Monday/Wednesday):
Eight multiple choice questions with 4 points each, totaling 32 points. First long question 36 points.
Second long q
14.02 Principles of Macroeconomics
Fall 2011
Quiz # 3
Thursday, December 8
7:30 PM 9 PM
Please write your answers directly on the quiz. The exam has a total of 6 questions and a
bonus (100+5 pts.). Please answer all of them. You should read all of the que
14.02 Quiz 2
Time Allowed: 90 minutes
NAME:
FRIDAY RECITATION:
Short Questions [28 pts.]
Determine whether each of the following statements is True, False or Uncertain. Give a brief explanation
for each answer.
1. In an attempt to keep unemployment rate b
14.02 Exam 1 Solution
Professor: Francesco Giavazzi
TAs: Anna Zabai, Mauricio Camargo, Amir Kermani
Kyungmin Kim, Luis Zermeno Valles
March 19, 2012
1 True/ False Questions: (5 points each)
Note: The answers should be justifed by short sentences.
1. The i
14.02 Quiz 1, Spring 2012
Time Allowed: 90 minutes
1
True/ False Questions: (5 points each)
Note: Your answers should be justied by a brief explanation. A simple T/F
answer wont get you any points.
1. The increase in house prices from 2000 to 2006 contrib
14.02 Quiz 1
Time Allowed: 90 minutes
Spring 2014
NAME:
MIT ID:
FRIDAY RECITATION:
FRIDAY RECITATION TA:
This quiz has a total of 3 parts/questions. The rst part has 10 multiple
choice questions where you should select what you think is the best answer
fr
14.02 Principles of Macroeconomics
Fall 2011
Quiz # 1
Thursday, October 6
7:30 PM 9 PM
Please write your answers directly on the quiz. The exam has a total of 7 questions (100 pts)
and a bonus question (5pts). Please answer all of them. You should read al
14.123 Microeconomic Theory III
Problem Set 1
The due date for this assignment is Thursday February 11.
1. Let P be the set of all lotteries p = (px , py , pz ) on a set C = cfw_x, y, z of consequences.
Below, you are given pairs of indierence sets on P .
Chapter 3
Decision Making under Uncertainty
21
22
CHAPTER 3. DECISION MAKING UNDER UNCERTAINTY
the conditions such consistent beliefs impose on the preferences,
the elicitation of the beliefs from the preferences, and
the representation of the beliefs
Chapter 2
Decision Making under Risk
2.1
Consequences and Lotteries
Consider a nite set C of consequences. A lottery is a probability distribution p :
P
C [0, 1] on C, where cC p(c) = 1. The set of all lotteries is denoted by P . The
9
10
CHAPTER 2. DECI
Chapter 6
Alternatives to Expected Utility
Theory
6.1
Allais Paradox and Weighted Utility
Imagine yourself choosing between the following two alternatives:
A Win 1 million dollar for sure.
B Win 5 million dollar with 10% chance, 1 million dollar with 89%,
Chapter 4
Attitudes Towards Risk
4.1
Theory
Take the set of alternatives as X = R which corresponds the wealth level of the decision
maker. The decision maker has an increasing von Neumann-Morgenstern utility func
tion u : R R, representing his preference
14.123 Microeconomic Theory III
Problem Set 3
The due date for this assignment is Thursday March 11
1. Lecture Notes; Chapter 6.4, Exercise 8.
2. Alice and Bob seek each other. Simultaneously, Alice puts eort sA and Bob puts eort
sB to search. The probabi
Chapter 1
Theory of Choice
1.1
Alternatives
Consider a set X of alternatives. Alternatives are mutually exclusive in the sense that
one cannot choose two distinct alternatives at the same time. Take also the set of feasible
alternatives exhaustive so that
Chapter 5
Stochastic Dominance
I will dene two notions of stochastic dominance:
1. First-order stochastic dominance: when a lottery F dominates G in the sense of
rst-order stochastic dominance, the decision maker prefers F to G regardless of
what u is, as
Chapter 8
Rationalizability
The denition of a game (N, S, u1 , . . . , un ) implicitly assumes that
1. the set of players is N , the set of available strategies to a player i is Si , and the
player i tries to maximize the expected value of ui : S R accord
Chapter 7
Preliminary Notions in Game
Theory
The games can be represented in two forms:
1. The normal (strategic) form,
2. The extensive form.
I rst describe these representations illustrate how one can go from one representation
to the other.
7.1
Normal
14.123 Microeconomic Theory III
Final Make Up Exam
(80 Minutes)
1. (30 points) This question assesses your understanding of expected utility theory.
(a) Show that there exists a preference relation on preferences that satises the in
dependence axiom but i
1989 Mat (year) Coupon
Price
1990
1
0.06
99.0654
1991
2
0.0825
105.8962
1992
3
0.055
98.7572
a. Calculate the modified duration and convexity for each of the bonds. (Note that you
should use the YTM in each case, and that it will vary across the bonds.
Ca
Bootstrap
Another Example Using Historical Data and Demonstrating Calculations Based 6-Month Intervals
(Spot rates based on T-bond data using bonds priced closest to par.)
Maturity
Feb-04
Aug-04
Feb-05
Aug-05
Feb-06
Aug-06
Feb-07
Aug-07
Feb-08
Aug-08
Pric