Sample MT2
Q1:
(a) State the denition of perfect competition
(b) State the denition of Pareto eciency.
Answer: (a) It is that every market participant takes the price as given.
(b) An allocation is Pareto ecient if you cannot make anybody better of withou
Sample MT2
Q1:
(a) State the denition of perfect competition
(b) State the denition of Pareto eciency.
Q2: There are two consumers, A and B. As preference is represented by uA (xA1 , xA2 ) =
2 ln xA1 + ln xA2 and Bs preference is represented by uB (xB 1 ,
MIDTERM 2
Economics 420K
Microeconomic Theory
Fall 2012
Oettinger
Instructions:
1. Please write your name in the top right corner of every page of the exam,
including this cover sheet.
2. The exam should have 7 pages, not including this cover sheet. If yo
Your name:
Econ 420K
Midterm Exam I
Fall 2010
Svetlana Boyarchenko
Please read all the questions carefully. You have 75 minutes for this
test. You can earn a total of 75 points on the test. The number of points
assigned to each question roughly indicates
Economics 420K
Professor Matt Clements
University of Texas
Practice exam #2
You have 90 minutes to complete this exam. Please do all of your work on the test paper.
Answer each question as concisely as possible, and be sure to write clearly. If you need
t
MIDTERM 1
Economics 420K
Microeconomic Theory
Fall 2012
Oettinger
Instructions:
1. Please write your name in the top right corner of every page of the exam,
including this cover sheet.
2. The exam should have 7 pages, not including this cover sheet. If yo
Economics 420K
Professor Matt Clements
University of Texas
Practice exam #1
You have 90 minutes to complete this exam. Please do all of your work on the test paper.
Answer each question as concisely as possible, and be sure to write clearly. If you need
t
ECO 420K-Houghton
Fall 2013
Problem Set 2
due Thursday 9/19/2013
1. (from NS 4.2)
(a) A young connoisseur has $600 to spend to build a small wine bottle cellar. She enjoys two vintages in
particular: a 2001 French Bordeaux (f ) at $40 per bottle, and a le
Eco 420k
Supplementary problem: solution
Chapter 4
Daves problem is to maximize
U (X, Y) = (XY)
subject to the budget constraint
10X + 5Y = 100.
The marginal utilities are
MUx = (1/2) X-1/2Y1/2
MUy = (1/2) X1/2Y-1/2
Setting MRS = price ratio,
Y / X = Px /
MIDTERM 2 .Sbt. W1 5 M5
Economics 420K Fall 2015
Microeconomic Theory Oettinger
Instructions:
1. Please write your name in the top right corner of every page of the exam,
including this cover sheet.
2. The exam should have 9 pages, including this cover sh
ECO 420K-Houghton
Review of Topics for First Midterm Exam
Logistics
In-class exam October 1, 2013: same room, same time, 75 minutes total
No need for blue book or scantron - write on exam.
No graphing calculators, no phones-as-calculators.
Primarily m
Sample MT1
125 points, but the actual exam is 100-point scale
Q1 (15pt.):
(a) (7pt.) State the denition of completeness of preference.
(b) (8pt.) Draw indierence curves for a preference which satises monotonicity but
violates convexity.
Q2 (45pt.): Marys
Eco 420k
Supplementary problems
Chapter 5
1. [This is the same as #1(a) from the Chapter 5 problem set in the study guide.]
An individual consumes two goods, X and Y, and has utility function U = min(X, Y). I.e., utility
is equal to the minimum of X and Y
Answers for Midterm 1
1. Transitivity. 2. u represents < if x < y () u(x) u(y ):
3. a) First nd the marginal utility of good 1 and good 2.
3 2 M U1 = x1 M U2 = x2 Then apply the formula M RS = M U1 =M U2 2x2 M RS = 3x1 b) By tangency condition: M RS = p1
Economics 420K
Professor Matt Clements
University of Texas
Practice exam #1: Solutions
Part I
1. A decrease in cost corresponds to a downward shift in supply. As a result, price
decreases and quantity increases.
2. When the price of hot dogs decreases, th
ECO 420K-Houghton
Review of Topics for Final Exam
Logistics
Final exam will be Monday, Dec. 16 from 2-5pm in PAI 3.02. This is not our normal classroom!
You will have the full three hours, though I do not expect it to take that long. The length will be
Practice Problems 01 - Supply, demand, elasticity
1. Suppose demand and supply are given by:
QD=28-0.1P QS=8+0.1P
a. Calculate the (point) price elasticity of demand when the price is $80 and when
the price is $100.
b. Calculate the (point) price elastici
Your name:
Econ 420K
Midterm Exam III
Fall 2010
Svetlana Boyarchenko
Solutions
1. (25 points) A competitive rm has the short-run cost function
SC (q ; k ) = q 3 8q 2 + 30q/k + 5k,
where k is a xed quantity of capital. For k = 1, write down the
equations f
Partial Equilibrium and Welfare
12.1
Under perfect competition, if an industry is characterized by positive economic profits in the short run
a.
firms will leave the market in the long run and the short-run supply curve will shift outward.
b.
firms will e
ECO 420K-Houghton
Fall 2013
Problem Set 4
due Thursday 10/10/2013
1. (Graphical analysis:) Consider two alternative cell phone plans. Under plan A, you pay as you go incurring
a charge per minute, pm . Under plan B, you pay a at fee, T , for x0 free minut
ECO 420K-Houghton
Fall 2013
Problem Set 1
due Thursday 9/12/2013
1. Find the maximizing point(s) of the following constrained problems.
(a) f (x, y) = xy s.t. x + 2y = 2
(b) f (x, y) = x + 8y 1/2 s.t. x + 2y = 5, x 0, y 0
2. (From NS 3.1 and 3.2) Graph a
Your name:
Econ 420K
Midterm Exam III
Fall 2009
Svetlana Boyarchenko
Please read all the questions carefully. You have 75 minutes for this
test. You can earn a total of 75 points on the test. The number of points
assigned to each question roughly indicate
EVERY SOLUTION TO THE BOOK IS IN THE
MANUAL BUT THEY ARENT NUMBERED
CORRECTLY. YOU HAVE TO SEARCH BUT ITS
IN THERE.
C H APT ER 2
T H E M A T H E M A T I CS O F O P T I M I Z A T I O N
The problems in this chapter are primarily ma
MIDTERM 3
Economics 420K
Microeconomic Theory
Fall 2012
Oettinger
Instructions:
1. Please write your name in the top right corner of every page of the exam,
including this cover sheet.
2. The exam should have 7 pages, not including this cover sheet. If yo