Economics 202N
Core Microeconomics
Due November 27, 2012
Problem Set 4: Choice Under Uncertainty
1. Suppose an agent has von Neumann-Morgenstern preferences over money lotteries that can
be represented by the utility function:
U (p) =
p(x)u(x),
x
where
u(
Economics 202N
Core Microeconomics
Due October 11, 2012
Problem Set 1: Choice Theory
1. Prove the following statements about preference relations:
(a) If
is transitive, then
is also transitive.
(b) If
is transitive, then is also transitive.
(c) If is comp
Core Microeconomics, Econ-202N
Stanford, 2012
Serguei Maliar
Stanford (2012)
Core Microeconomics, Econ-202N
Serguei Maliar
1 / 17
The multi-country model
The planner maximizes a weighted sum of N countrieslifetime utilities
!
N
n
max o E0 h
N
fcth ,kth+1
Economics 202N
Core Microeconomics
Due October 23, 2012
Problem Set 2: Producer Theory
Answering these questions may require you to make reasonable assumptions that are not explicitly stated in the problem. Please try to be explicit whenever you do so.
1.
Economics 202N
Core Microeconomics
Due November 9, 2012
Problem Set 3: Consumer Theory
1. Consider an economy with two goods; can the Walrasian demand function below be generated
by rational consumer with strictly concave, twice continuously dierentiable
Economics 202N
Core Microeconomics
Problem Set 6: General Equilibrium
1. Consider a two agent, two good pure exchange economy, with endowments ei R2 .
a) Dene the set of feasible allocations, i.e. F() = x R2 : . . . .
b) Dene the set of individually ratio
Economics 202N
Due December 9, 2011 (in section)
Problem Set 5: General Equilibrium
1. Consider an economy with two goods and two agents. Suppose u1 (x, y) = log(x) + log(y)
and u2 (x, y) = min(2x, y). Let the endowments be e1 = (e1 , e1 ) = (5, 5) and e2