Microeconomic Theory I
Assignment #1 - Due date: September, 5th, in class.
1. Liking more of everything Consider a set X = RL , and dene that, for every
two bundles x; y 2 X,
x % y, if and only if xk
yk for every component k,
that is, bundle x is at least

Micro Theory I
Recitation #1 - Preferences and Choice1
1. MWG 1.B.2. Prove property (ii) of Proposition 1.B.1: If a preference relation % is
rational (i.e., satised completeness and transitivity) then:
(a)
is reexive (x x for all x), transitive (if x
symm

EconS 501 - Micro Theory I
Assignment #1 - Answer key
1. Liking more of everythingConsider a consumption set X = RL , and dene that,
for every two bundles x; y 2 X,
x % y if and only if xk
yk for every component k,
that is, bundle x is at least as good as

AmherstCollege
Departmentof Economics
Economics
58
Fall2009
Name
First Hour Test
SOLUTIONS
There are three questionson this 80 minute examination. Each is of equal weight in
grading.
1. Supposethat a personconsumestwo goods,x andy, in fixed proportions. H

ECON 501 Micro Theory I
RECITATION #2
MWG 3.D.1. Verify that the Walrasian demand function generated by the Cobb-Douglas utility function
satisfies:
(i) Homogeneity of degree zero in (p,w):
x(p,w)=x(p,w) for any p,w and for any scalar >0
(ii) Walras law:

Answers to Problem Set #2
Course: BPHD 8120
Ans [1]:
20
1
X
i 1
i
X Yi Y
20
X
i 1
i
X
2
106.4
215.4
1 0.493
0 Y 1 X
1 20
1 20
0 Yi 1 X i
20 i 1
20 i 1
0 1.095 (0.493*9.31)
0 3.48
20
20
i 1
i 1
20
2 (Yi Y )2 12 ( X i X ) 2
i 1
86.9 0.493 * 215.

111Equation Chapter 1 Section 1Answers to Problem Set #1
Course: BPHD 8120
Ans: [1]
least squares slope estimator will remain unbiased if
Equation 21\* MERGEFORMAT ()
E[ 1 ] 1
N
( xi x )( yi y )
E[ 1 ] E i 1 N
2
( xi x)
i 1
N
( xi x)( yi y )
E i

BPHD 8120: ECONOMETRICS I
Fall 2016
Problem Set #3
[1]
A researcher is studying the rationality of housing assessments. Data on assessments (
and subsequent transactions price (
A
) were gathered on 88 houses and the following regression
)
P
equation was