TUFTS UNIVERSITY Department of Economics
Hourly Exam #2 Economics 16 Quantitative Intermediate Theory, Micro Professor Linda Datcher Loury Fall 2007 Read each question carefully. Answer both questions
Ec16. Practice exercises. Profit function. Partial equilibrium analysis.
Students name: _
100 points total
Multiple choice questions:
1
The market demand curve for any good is
a.
independent of indivi
Ec16. Homework #6. Preferences and utility.
Students Name: _
(100 points total)
Circle the correct answer in problems 1-23 (each multiple choice question is 4 points):
1
Indifference curves
a.
may som
I will have 15 multiple-choice questions (2 points each) and problem sets
similar to the homework assignments (#8,9,10,11) worth of 70 points
(total100 points exam).
F
Welfare analysis
Price controls and taxes
Chapter 12 N&S
Economic Efficiency and Welfare Analysis
Sum of consumer and producer surplus
represents the area between the demand
and the suppl
Prot Maximiza-on
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
The Nature and Behavior of Firms
A firm
An association of individuals
Who have organized themselve
U"lity Maximiza"on
and Choice
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
The Interior Solution:
Two-Good Case
First-order conditions for a maximum
Point o
Cost Func*ons
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
Definitions of Costs
It is important to differentiate between
accounting cost and economic cost
Accoun
U"lity Maximiza"on
and Choice
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
Indirect Utility Function
It is often possible to manipulate firstorder condition
EC16. Homework assignment 11. Relationships between goods and uncertainty.
Chapter 6 (pp 187-196)& 7 (pp 209-221) in N&S, Due April 17th 2014, in class.
(100 points total)
Students name _
I. Problem s
Lecture notes
Producer surplus and prots in the
short run
Properties of the Profit Function
Homogeneity in all prices p, w, v
Nondecreasing in output price, P
Nonincreasing in input price
Externali*es and
Public Goods
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
13.14
Determination of Equilibrium Prices
*
px
slope =
*
py
Quantity of y C*
C
P
Ec16. Quiz #2 Outline Spring 2014
Chapters 11 (w/o substitution and output effects on pp. 391-395)1 and 12
(w/o welfare effects on pp 438-446); exercises from homework
Ec16. Spring 2014 Quiz #2. Students Name:_ANSWERS_
1. For the production function q = k0.5 L0.4 show the mathematical formula for the
average physical product of labor, APL, in the short run when capi
Ec16. Production theory. Chapters 9,10. Review concepts and questions
1. Production function
The production function y = f(x)shows the maximum amount of output that can be
obtained from various combin
Ec16. Practice exercises. Production and Costs. Chapters 9 and 10.
1. Graphically, the average productivity of labor is illustrated by
a.
b.
the slope of the marginal productivity curve at the relevan
Ec 16. Chapter 3 and 4 Nickolson&Snyder - Practice Exercises.
1. Consider an individual utility function U(x, y) = ln y + 2ln x. The price of x is given
by px a
ec16 Outline for exam#3 - Spring 2014
1. Chapters 5 (pp 145 - 174), 6 (pp 187 196):
Relationship between compensated and uncompensated demand curves -
which one
Ec16. Midterm examination #1 Outline Spring 2014
Chapter 2 (Concepts of homogeneity and homotheticity, pp57-58; Second-
order conditions and curvature, pp48-51; Elasticities p
Uncertainty
PowerPoint Slides prepared by:
Andreea CHIRITESCU
Eastern Illinois University
1
The Two-Good Case
How the quantity of x chosen might be
affected by a decrease in the price of y
Shifting
Ec16. Homework assignment #10. Slutsky decomposition and welfare measures of price
changes. Due April 15th, in class. Students name: _
1.Consider the utility function U(x,y) = x0.5y0.5. Show the Sluts
Ec16. Homework #5. Profit function and comparative statics.
1. Find the profit-maximizing level of labor input (l) for a competitive firm if its
production function is
Ec. 16 Quantitative Intermediate Microeconomics Sample Hourly Exam #1 1) Assume that the Williams family has an income of $M per month and that its utility function for housing (X) and all other goods
Quantitative Intermediate Microeconomics Answers to Problem Set #4
1) Answers a) MPL=q/L=L-1K 2q/2L=(-1)L-2K<0 since (-1)<0 MPK=q/K=LK-1 2q/2K= (-1)LK-2<0 since (-1)<0 b) MRTS=MPL/MPK=L-1K/LK-1= K/L
Intermediate Microeconomics Problem Set #4 Due Tuesday, November 6 at 9:30 1) Suppose that the production function is given by q=L K where >0, >0, and +<1. Show that (a) the production function is cha
Quantitative Intermediate Microeconomics Answers to Problem Set #3 1) Answers a) MPL=q/L=L-1K 2q/2L=(-1)L-2K<0 since (-1)<0 MPK=q/K=LK-1 2q/2K= (-1)LK-2<0 since (-1)<0 b) MRTS=MPL/MPK=L-1K/LK-1= K/L c
Quantitative Intermediate Microeconomics Problem Set #3 1) Suppose that the production function is given by q=L K where >0, >0, and +<1. Show that (a) the production function is characterized by dimin