HW 4 Solutions
ECON 4531
University of Minnesota
Spring, 2017
1) a) According to data, we can assume that there are 4 people in the country with the
following data.
# of people
1
2-3
4
Income
20
50
80
Cumulative Income
20
120
200
Share of cumulative incom
HW3 Solution Manual
ECON 4531
University of Minnesota
Spring 2017
1)
P rof it = 1, 000, 000 20S 2 10 (50, 000 100S)
= 1, 000, 000 20 S 2 500, 000 + 1, 000 S, then
P rof it
= 40 S + 1, 000 = 0 S = 25 thus w = 50, 000 100 25 = 47, 500
S
Then Cost of saf ety
Econ 4831: Cost and Benefit Analysis
Fall 2016
Instructor: Marcos Marcolino
Problem Set 1 - Due October 10th
ANSWER KEY
This problem set is worth 100 points with extra 15 points and is due on October 10th in class.
Feel free to collaborate with your class
Econ 4831: Cost and Benefit Analysis
Fall 2016
Instructor: Marcos Marcolino
Problem Set 2 - Due November 30th
ANSWER KEY
This problem set is worth 100 points with extra 20 points and is due on November 30th in
class. Feel free to collaborate with your cla
Homework 2
April 3, 2017
Part 1 (Similar to what we did in class)
Suppose the money demand can be expressed as mt = ( ) y , where
= 0.30 and = 0.80.
a) Calculate the ination rate that maximizes the ination tax. Calculate
the maximum ination tax.
b) Suppo
Econ 4311
Tejaswini Gupta
Worked with Laura Cattaneo and Tuba Dar
Part 1 Attached sheet
Part 2
Question 6
An increase in oil prices over a short period is defined as an oil shock. When
there is an increase in oil prices, an oil exporting country wishes t
ECON 4311
Tejaswini Gupta
Part A
Question 2
GDP is the output of all final goods and services produced in an economy during a year.
The economic output of the world is approximately $76 trillion and Latin America output
is around $6 trillion or over 8% o
Saving, Investment,
and the Financial
System
Outline
The Supply of Savings
The Demand to Borrow
Equilibrium in the Market for Loanable Funds
The Role of Intermediaries: Banks, Bonds, and
Stock Markets
What Happens When Intermediation Fails?
The Financia
Micro Review
Mini Quiz
Which of the following is the best definition of
opportunity cost
A. What you gain when taking up a job
opportunity
B. The value of what you give up when you
make a choice.
C. The cost of buying a good
Answer : B
The value of what
Midterm 1 Review
Micro Review
Comparative advantage vs Absolute
Advantage
Comparative - lower opportunity cost
Absolute - just need fewer inputs
Which is important for trade?
Comparative
If country has comparative advantage it
can increase wealth by
Stock Markets and
Personal Finance
Outline
Passive vs. Active Investing
How to Really Pick stocks, Seriously
Other Benefits and Costs of Stock Markets
Key Concept: Efficient Markets Hypothesis
Passive vs. Active Investing
Active investing picking individ
Principles of Macroeconomics
Midterm Exam
Name:
Recitation # (3 pts):
Exam Version: 16-F-M2MU
Time Limit: 60 minutes.
Guidelines: READ THEM!
Exams written in pencil will not be regraded. You must write in ink if you might want a regrade in the future.
Il
Principles of Macroeconomics
Midterm Exam
Name:
Recitation # (3 pts):
Exam Version: 15-F-M2MU
Time Limit: 60 minutes.
Guidelines: READ THEM!
Exams written in pencil will not be regraded. You must write in ink if you might want a regrade in the future.
Il
Principles of Macroeconomics
Midterm Exam
Name:
Recitation # (3 pts):
Exam Version: 16-S-M2MU
Time Limit: 60 minutes.
Guidelines: READ THEM!
Exams written in pencil will not be regraded. You must write in ink if you might want a regrade in the future.
Il
Principles of Macroeconomics
Midterm Exam
Name:
Recitation # (3 pts):
Exam Version: 16-F-M2
Time Limit: 60 minutes.
Guidelines: READ THEM!
Exams written in pencil will not be regraded. You must write in ink if you might want a regrade in the future.
Ille
Homework 1
September 15, 2016
Problem 1: Define following terms
Real vs. Financial Assets
Real assets: Any goods or services that can be used to produce more goods and
services, or wealth in large. They include: knowledge, machinery,
buildings, human cap
ECON 3102
December 8th, 2016
Homework 3
1.
-One-period searching-matching model
-At the beginning of the period, population is u and everyone is unemployed
-Total production of unemployed workers and firms: b=0
-Joint production of firms and workers: y
-V
ECON 4721
February 7, 2017
Homework 1
Problem 1
A constant population: N = 200.
Endowment of consumption goods: y=10 when young, and y=0 when old.
1. What is the equation for the feasible set of this economy? Portray the feasible set on a graph.
With ar
ECON4721
February 28, 2017
Problem Set #2
Problem 1: Exercise 3.4 (pg. 65)
a. No, the trading value of gold cannot exceed , because has the limiting value. The
marginal rate of price (value) of gold and unlimited capacity of mining gold imply that the
rel
save for tomorrow. The decision of investing capital (or resources) for the future
depends on the two factors , r t .
(g) Derive the intra-period Euler equation. Explain the intuition behind it.
Intra-period Euler equation:
v ( nt )=wt u' (c t )
The intui
ECON3012
September 29, 2016
Homework 1
1.
In a 3-period consumption saving problem, assume log utility u (c) = ln c, discount
factor (0, 1), interest rate R, and income in three periods are y1, y2, y3:
(a) Consumer objective function:
u ( c 1 , c 2 , c3 )
ECON 3102
December 8th, 2016
Homework 3
1.
-One-period searching-matching model
-At the beginning of the period, population is u and everyone is unemployed
-Unemployed workers and firms produce 0 output
-Joint production of firms and workers: y
-Vacancy p
ECON 3102
December 20, 2016
Homework 4
1.Time-inconsistency Problem
For an economy, consider the following:
Natural rate of unemployment: U N =12
The ideal level of unemployment rate: U =6
The ideal level of inflation: =2
Social Loss function: L=( U U )2
ECON 4271
April 11, 2017
Problem 1
Consider an economy in which the money growth rate permanently increases from 3 percent to
10 percent. What is the effect of this policy change on the capital stock?
The increase of money growth rate from 3 percent to 10
APEC3001, Spring 2016
MIDTERM #2
Name: _Solutions_
ID number: _
Do not open the exam until instructed to start. Everyone will start at the same time.
You have 75 minutes to write up your answers. There are 133 possible points on this exam. If you answer
a
Name:_ (3pts) Midterm 2 Practice Exam ANSWER KEY
(You have 75 minutes to complete this exam)
*Please be sure to answer all the questions. Show all your work. Be specific in your
answers.
TRUE or FALSE (3 points each)
1. True or False: The shape
APEC3001, Fall 2016
MIDTERM #2
Name: _Solutions_
ID number: _
Do not open the exam until instructed to start. Everyone will start at the same time.
You have 75 minutes to write up your answers. There are 133 possible points on this exam. If you answer
at
APEC3001, Spring 2016
MIDTERM #2
Name: _
ID number: _
Do not open the exam until instructed to start. Everyone will start at the same time.
You have 75 minutes to write up your answers. There are 133 possible points on this exam. If you answer
at least tw
EXTRA PROBLEM SET Answer Key
ECON 3102 Intermediate Macroeconomics
Ignacio P. Campomanes
1
Competitive Equilibrum and Taxes on Profits (40 points)
Consider a simple one-period, closed economy model where the representative consumer has utility function
1