Economics 445
Fall 2012
Marcus Berliant
Brady Vaughn
PROBLEM SET 1
Due: October 3
These questions can be answered precisely and denitively in very little
space. When applicable, state your assumptions. All of the numerical problems
are rigged to have answ

Economics 445
Spring 2012
Marcus Berliant
Sho Miyamoto
EXAM 2
April 25, 2012
Please:
1)
Be brief. There is a correct answer to each problem. I am not looking
for long essays.
2)
Write your name on all of your answer books.
3)
State your assumptions. Do no

Economics 445
Spring 2012
Marcus Berliant
Sho Miyamoto
EXAM 1
March 21, 2012
Please:
1)
Be brief. There is a correct answer to each problem. I am not looking
for long essays.
2)
Write your name on all of your answer books.
3)
State your assumptions. Do no

Economics 445
Fall 2012
Marcus Berliant
Brady Vaughn
PROBLEM SET 2
Due: October 17
These questions can be answered precisely and denitively in very little
space. When applicable, state your assumptions. It might be useful (and more
fun) to work on this in

Economics 445
Fall 2012
Marcus Berliant
Brady Vaughn
PROBLEM SET 4
Due: November 28
These questions can be answered precisely and denitively in very little
space. When applicable, state your assumptions. It might be useful (and more
fun) to work on this i

Economics 445
Fall 2012
Marcus Berliant
Brady Vaughn
PROBLEM SET 3
Due: November 14
These questions can be answered precisely and denitively in very little
space. When applicable, state your assumptions. It might be useful (and more
fun) to work on this i

Problem Set 2: Suggested Answers
Brady Vaughan
October 25, 2012
I. True or False (1pt each)
A
False. For example, an equilibrium allocation is not Pareto optimal in the presence of
an (non-pecuniary) externality.
B
False. The rst welfare says that an equi

Problem Set 1: Suggested Answers
Sho Miyamoto
February 22, 2012
I. The Edgeworth Box: Cobb-Douglas Utilities
A
The indierence curve for consumer j is derived by xing utility at some constant level
c such that c = g j hj . From this, hj = g j /c.
contract

Problem Set 4: Suggested Answers
Sho Miyamoto, Brady Vaughan
December 4, 2012
I (3pt)
If married taxpayers le a joint tax return, their combined income belongs to a higher tax
bracket than their individual income does in a separate tax return. Since the m

Problem Set 3: Suggested Answers
Sho Miyamoto
April 4, 2012
I. Taxing a Private Good (6pt)
8
p
6
4
2
0
0
2
4
6
8
x
A
At the equilibrium price P , the demand curve 9 X and the supply curve
The equilibrium is X = 6 and P = 3.
X
2
intersect.
B
Let P c denote