Econ 100A
Microeconomic Analysis
Spring 2015 UC Berkeley
1
Should you take this course?
Yes (you probably have to.)
Prerequisite:
Econ 1, 2, C3 or EEP 1
Math 1A & 1B or 16A & 16B
ALL enrollment issues should be discussed with
the Head GSI:
2
headgsi@econ.
Econ 100A
Microeconomic Analysis
Lecture 6; Reading 4.3, 4.1 & 4.2
1
Concepts from Lecture 5
Income & substitution effect
Substitution effect: the impact on consumption as a
result of the change in relative prices
Income effect: the impact on consumption
Name: _
(Last name, first name)
SID: _
GSI: _
UGBA 101B: Macroeconomic Analysis for Business Decisions
Professor Steven Wood
Summer 2015
Problem Set #1
Due: July 14, 2015 in class at 10:40 a.m.
(The grace period ends promptly at 10:50:01 a.m.)
Place your
Welcome to UGBA 101B:
Macroeconomic Analysis
for Business Decisions
Professor Steven Wood
Haas School of Business
Course Description
This is a course in intermediate macroeconomics, with an emphasis on real world
applications.
1.
We will develop models to
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 11, 2015
Section 7: Solow Growth Model I
Practice Problem Answers
Growth Accounting
Example 1: Suppose two countries have the same growth rates of their capital and labor inputs. These
factors
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 18, 2015
Section 8: Solow Growth Model II
Practice Problem Answers
Change in the Depreciation Rate
Example 1: If the frequency of devastating earthquakes decreases, what happens in the Solow Mo
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 23, 2015
Section 9: Money & Inflation
Practice Problem Answers
Multiple Choice
1. What are the costs of anticipated inflation?
a. Shoe leather cost
b. Tax distortion
c. Increased uncertainty
d.
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
January 26, 2015
Section 2: Measuring Macroeconomic Data
Practice Problem Answers
Multiple Choice
1. Which of the following is part of the United States 2015 GDP?
a. My used macroeconomic textbook.
b. M
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 2, 2015
Section 4: Aggregate Production & Productivity
Practice Problem Answers
Production Function
Q1: Even if labor and capital stock are the same, TFP could increase. Can you think of any ex
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 4, 2015
Section 5: Saving & Investment in Closed Economies
Practice Problem Answers
National Saving Measures
Q1: Does increased saving always lend itself to increased wealth levels?
Answer: No,
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
January 28, 2015
Section 3: Measuring Macroeconomic Data II
Practice Problem Answers
Gross Domestic Product (GDP)
1. GDP include Net Exports (NX), which is exports minus imports. But why do we subtract
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
February 9, 2015
Section 6: Saving & Investment in Open Economies
Practice Problem Answers
Perfect Capital Mobility
Q1: What would happen if an open economy did not set their real interest rate at the w
ECON 100B Spring 2015
Section 106 & 109
GSI: Jin Noh
January 21, 2015
Section 1: Introduction to Macroeconomics
Practice Problem Answers
Multiple Choice
1. Which of the following sequences best describes the five necessary steps to develop an economic
mod
Econ 100A
Microeconomic Analysis
Lecture 2; Reading 3.1 & 3.2
1
Announcements
First i-Clicker lecture is 2/2
I will give out book codes after lecture today
Concepts to know from Lecture 1
What is Microeconomics?
What is a model?
Positive vs. normative ana
Econ 100A
Microeconomic Analysis
Lecture 3; Reading 3.2-3.3
1
Concepts to know from Lecture 2
Rationality
Completeness
Transitivity
More is better
Indifference Curves
Utility and utility functions
How to find the math representation of an
indifference cur
Econ 100A
Microeconomic Analysis
Lecture 20
1
Announcements
Midterm average with curve 82
Standard deviation 12
Re-grades in person by 05/15
No office hours tomorrow, instead office hours
on Wednesday, 1 to 3
Midterm
Final logistics
Final IS cumulative
2/
Econ 100A
Microeconomic Analysis
Lecture 16: Reading: Chapter 9.1-9.4
1
Recap
The effect of taxes on supply
Specific tax, L-S tax, VAT
Short-run vs long-run supply
Welfare analysis
Consumer and producer surplus
Welfare & efficiency
DWL
Efficiency of the c
Econ 100A
Microeconomic Analysis
Lecture 21
1
Reading for the rest of the semester
Chapter 11
Chapter 13.1-13.3
Chapter 14: 14.1-14.6, 14.8
Chapter 17: all
Chapter 18: 18.1-18.3
Grade Calculator
Is now posted on b-courses
Airbus vs. Boeing
Airbus
Not prod
Econ 100A
Microeconomic Analysis
Lecture 13: Reading: Chapter 7.1-7.4
1
Announcements
PS 3 is due on Wednesday, in class
Midterm re-grades requests in writing until
Monday 3/23
Recap
Short-run production:
Total product curve
Marginal productivity of labor
Econ 100A
Microeconomic Analysis
Midterm I Review
1
Announcement
PS 2 is due now
Exam policies:
No outside material and no calculators
No powdering your nose
No hoodies or hats while taking the exam
No grade if you keep working past allocated time
No make
Econ 100A
Microeconomic Analysis
Lecture 11: Reading 16.1-16.3
1
Lecture 10 Recap
Addiction
Discounting
Exponential vs. quasi-hyperboloic discounting
Nave vs. sophisticated
i-Clicker question
A sophisticated individual will never
procrastinate.
A. True
B.
Econ 100A
Microeconomic Analysis
Lecture 12: Reading: Chapter 6
1
Announcements
PS 3 is due next Wednesday, in class
Second midterm is on 04/08
Midterm I
Recap
Choice under uncertainty
Expected value, variance, standard variation
Expected utility
Risk pre
Econ 100A
Microeconomic Analysis
Lecture 7; Reading 4.1 & 4.2, 2.1 & 2.5
1
Annoucements
PS2 to be posted today
Due next Wednesday, 2/25, by 4:10 pm
Next Wednesday is the midterm review
03/02 is Midterm 1
Concepts from Lecture 6
Giffen good
Engel curve
Soc
Econ 100A
Microeconomic Analysis
Lecture 10
1
Concepts from lecture 8
Elasticity
Slutsky equation
Hicksian demand derivation
We will review consumer surplus and welfare
(5.1 & 5.2) when we get to welfare analysis
Theories of Addiction
Why addiction?
Addic
Econ 100A
Microeconomic Analysis
Lecture 5; Reading 3.4 & 4.3
1
Concepts from lecture 4
Utility Maximization The Math
Substitution
Lagrangian
Solution to the maximization problem is the
quantity of X and Y demanded, given income and
prices
X* & Y* are end
Econ 100A
Microeconomic Analysis
Lecture 8; Reading: Chapter 5.1-5.3
1
Announcements
PS 2 due in class by 4:10 on Wednesday
It is also midterm review
First midterm is on Monday 03/02
I will hold office hours on Monday, 1pm 3p
Unofficial OH in my caf, Sat
PS 5 FALL 2014
A. Multiple Choice Questions (15 points). Computer highlight the best answer (3 points each).
1. Suppose that inflation is at central banks target level but that the economy has a substantial positive
output
gap. If the central bank has a p
PS 6 SPRING 2015
A. Multiple Choice Questions (15 points). Computer highlight the best answer (3 points each).
1. Suppose that a country has a fixed exchange rate and unrestricted (financial) capital flows. Which of
the
following would the country NOT exp
2008 EXAM
A. Multiple Choice Questions. Circle the letter corresponding to the best answer. (3 points each; total of
30 points.)
1. The Phillips curve is the relation between inflation and unemployment that holds for a given natural
rate of
unemployment a
PS 6 FALL 2014
A. Multiple Choice Questions (15 points). Computer highlight the best answer (3 points each).
1. Three-wheel cars made in Indonesia are sold for 5,000 rupiah. Four-wheel cars made in Thailand are
sold
for 10,000 baht. The nominal exchange r
PS 5 SPRING 2015
A. Multiple Choice Questions (15 points). Computer highlight the best answer (3 points each).
1. Suppose that you hear of a great deal on a used car and wonder, Why is the price so low? This might
be
an instance of:
a. Moral hazard.
b. Ad