ECO 6381 Economic Analysis I
Midterm Exam
6:30pm - 9:20pm, Oct. 05, 2015
Instructor: Bo Chen
Southern Methodist University
, Student ID:
Student Name:
Instructions. This exam consists of FIVE questions, with the weights of each question given in brackets

ECO 6831 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 1
Due in class on 09/14/2015
Instructions. This assignment will be due on Monday, September 14, 2015 at the beginning of class. If
you cannot mak

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Answer Key 5
QUESTION 1. Production Function.
(a) In the long run, all inputs can be adjusted. The marginal product of capital
p M PK and the
marginal product of lab

ECO 6831 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 2
Due in class on 09/21/2015
Instructions. This assignment will be due on Monday, September 21, 2015 at the beginning of class. If
you cannot mak

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 6
Due in class on 11/30/2015
Instructions. This assignment will be due on Monday, November 30, 2015 at the beginning of class. If
you cannot make

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Answer Key 6
QUESTION 1. (a) Each rm solves the following problem
max P q
T C (q) = max P q
q
9
q
q2 .
The rst-order condition with respect to q leads to
P
2q = 0 )

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Answer Key 1
QUESTION 1. (Indierence Curves and Utility Function)
(a) The slope of the Indierent curves is -1. As the Marginal Rate of Substitution of the r

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Answer Key 2
QUESTION 1 (a) The budget set with government cash aid is the triangle AOE; where O denotes the origin. The
budget set with food stamps is the right-ang

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Answer Key 4
QUESTION 1 Consumer Surplus.
(a) The utility maximization problem is
maxx1 ;x2
0
x1 x2 , subject to x1 p1 + x2 p2 = I:
The two optimality conditions are

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Answer Key 3
QUESTION 1 The Slutsky Equation.
(a) The utility maximization problem is
maxx1 ;x2
0
x1 x22 , subject to x1 p1 + x2 p2 = I:
The two optimality condition

Answer Key to Question 5 of Practice Exam II
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Part [a] : Consider the utility maximization problem of consumer A:
A
A
A U
maxxA
xA
1 ; x2
1 ;x2
A
subject to xA
1 + x2 = E
Use the constraint to ob

ECO 6831 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 4
Due in class on 10/26/2015
Instructions. This assignment will be due on Monday, October 26, 2015 at the beginning of class. If
you cannot make

Practice Exam for Final Exam
(Monday, 12/07/15, 6:30pm - 9:20pm (Umphrey Lee 0303)
ECO 6381 Economic Analysis I
Fall 2015
Southern Methodist University
Instructor: Dr. Bo Chen
Instructions. This exam consists of FIVE questions, with the weight of each que

Practice Exam for Midterm
(Monday, 10/05/15, 6:30pm - 9:20pm (Umphrey Lee 0303)
ECO 6381 Economic Analysis I
Fall 2015
Southern Methodist University
Instructor: Dr. Bo Chen
Instructions. This exam consists of FIVE questions, with the weight of each questi

ECO 6381 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 5
Due in class on 11/16/2015
Instructions. This assignment will be due on Monday, November 16, 2015 at the beginning of class. If
you cannot make

ECO 6831 Economic Analysis I
Southern Methodist University, Fall 2015
Instructor: Bo Chen
Homework Assignment 3
Due in class on 09/28/2015
Instructions. This assignment will be due on Monday, September 28, 2015 at the beginning of class. If
you cannot mak