Economics 522A, Final Review Questions Note: the final exam will be cumulative and may cover any topic in the course, not just the topics in this set of review questions. The review questions mostly cover the second half of the course, but you should also
Econ 150: Electricity
Derek Lemoine
University of Arizona
We should promote
renewable electricity so we
can reduce our
dependence on foreign oil.
a) Yes: National security!
b) Yes: Clean energy!
c) No: Expensive!
Number one, we do need to expand domestic
1. (a) Everyone will benefit from reducing water pollution from livestock production
because everyone use water every day. Reducing water pollution from livestock
production can improve water quality, so everyone will benefit from it. However,
farmers may
Have you ever tried to buy
tickets for a concert and
found it was sold-out?
Econ 150:
Equilibrium
a) Yes, all the good ones
b) Yes, sometimes
Derek Lemoine
c) No, I only go to see good
bands
University of Arizona
d) No, mp3s are a perfect
substitute and a
What do prices do?
Econ 150:
Intro to Economics
Whats the most
you would pay?
a) <=$1
b) $5
c) $10
d) >=$50
Derek Lemoine
University of Arizona
$50!
What do prices do?
Whats the least
youd make your
roommate pay you
to allow him/her to
hang one up?
a) <=$
Econ 150:
Energy and Environmental
Challenges
Is gasoline too expensive? a) Yes b) No
Why does the price change so much?
Derek Lemoine
University of Arizona
EIA
EIA
Why is climate change a hard
problem? What should we do?
NREL
IPCC AR5
(2013)
Why does our
Economics 522A, Spring 2007 Midterm, March 8, 2007
Please write your answer to each question on a separate sheet of paper, and put your name on every sheet of paper. The exam has 3 questions, with a total of 70 possible points. Write clearly and legibly,
Economics 522A, Midterm Review Questions 1. Consider the following probability mass function: .4 - x = 1 .3 x=2 .1 + x = 3 f (x|) = .2 x=4 0 otherwise where -.1 .4. (a) Suppose we have a random sample of size 1 from f (x|). Give the critical region for a
Economics 522A, Homework 10 Suggested Solutions 1. (a) We need to assume that the second moment matrix of (xi , yi , ui ) is finite and that V (xi ) > 0. Recall that we can write Cov(~i , yi ) x ^ , 2 = V ar(~i ) x where Cov is the sample covariance, and
Economics 522A, Homework 9 Solutions
1. The M-function hw9.m takes as input T , , and the number of simulation draws, and then draws from the distribution of . For = 0.5, 0.9, 1, we get sample averages for ^ of: ^ 0.45255 0.82097 0.92029
We see that all o
Economics 522A, Homework 7 Suggested Solutions 1. Ruud, 13.8: (a) In class, we showed that s2 = = 1 n n-k n
n 2 ^ yi - i=1
1 n
n
^ xi xi
i=1
1 n ^ ^ y y - X X n-k n
.
First, consider the term y y. Write y = y - X + X. Then we can write: y y = (y - X + X)
Economics 522A, Homework 6 Suggested Solutions
1. (a) First, note E[yi - xi | xi ] = E[yi | xi ] - xi = xi - xi = 0 Therefore, using the law of iterated expectations, E[xi (yi - xi )] = E E xi (yi - xi ) | xi = E xi E yi - xi | xi = E [xi 0] = 0. ^ (b) so
Economics 522A, Homework 5 Suggested Solutions
1. The function hw5 1.m simulates a draw for y in the normal regression model. Since the variance of y is 2 In , we can draw n independent standard normals using randn, multiply each by , and add to X to get
Economics 522A, Homework 4 Suggested Solutions
1. A useful result is that the solution to:
n
min
a i=1
(yi - a)2
is a = ^
1 n
i yi
= yn . Now, consider the LS problem given:
n 1 ,2 ,3
min
(yi - xi1 1 - xi2 2 - xi3 3 )2 .
i=1
We can group this sum into th
Economics 522A, Homework 2 Suggested Solutions
1. (a) Let X1 , X2 , . . . , X1000 denote indicator functions equal to 1 if the ith coin toss is heads and 0 if tails. Then we can write T =
1000 i=1 Xi
1000
,
and note that 1000 T = i Xi is Binomial with par
Economics 522A, Homework 1 Suggested Solutions
1. We have a sample of size 2, so the joint likelihood is f (x1 , x2 ; ) = 1 x1 + x2 . exp - 2
By the Neyman-Pearson lemma, the most powerful test uses a critical region of the form Cx = = = = (x1 , x2 ) : (
Econ 150:
Opportunity Cost
Review
Who sets prices in
competitive markets?
a) Bosses
Derek Lemoine
b) Rich consumers
If the cost of a production
input falls, will the marketclearing price move up or
down?
a) Up
c) Outdoor cats
University of Arizona
Fundame