Book Report: Naked Economics
A requirement for this class is to read and report on Wheelans book, Naked
Economics. You are required to write a two-page (double spaced) report on
this book. The report will have a title, your name, and a statement
Dallin, Ben B.
Ben C. (P),
Dallin, Sean (Sh)
Dallin, Neil, Ben
C. (P), Hannah
Suppose that in a two person team, one person has a comparative advantage in
writing and another has a comparative advantage in doing statistical analysis. Does
this imply that the person with comparative advantage in writing should do no
1. There are about 2.5 million people in the world with multiple sclerosis, a chronic
debilitating illness. There are 212 million people who suffer from malaria each year
and 420 thousand deaths from malaria. Does this imply that the market is likely to
1. Maria has a food truck in Provo and sells her amazing tamales for $3 each. Suppose
the government decides they want to make money off of her delicious tamales so
they impose a tax. After the tax is imposed, consumers are now paying $5 for each
1. Would Kneader's French Sourdough bread have a demand that is more elastic or less
elastic than bread in general? Explain your reasoning.
Kneaders French Sourdough bread would have more elastic demand than bread in general
because demand is always more
How to Succeed in and Enjoy Econ 110
Many students enroll in Econ 110 with a bit of trepidation, but you neednt be too
nervous. The following is a list of tips complied by experienced an TA to help you
1. Start reading Naked Economics today. Yeah
Rock the Test
Your Econ 110 Midterm 1 Study Guide
When in doubt, draw it out!
3. Demand function and curve
a. Be able to list the components of the demand function
b. What causes movements along the demand curve? A shift in the dema
Solow residual = A
Y = AK L1 Y = A + K + (1 )L
The estimation of the Solow residual necessary to generate the changes
in output seen in the data is implausible. Figure 6 implies that productivity has huge swings.
Figure 6: U.S. GDP and Solow Residual A
Chapter 17: Microfoundations of Consumption
In earlier chapters, C = C(Y T ) in the identity Y = C(Y T ) + I(r) + G
Where does C() come from?
What is C() a function of?
Six economists ideas on consumption: How do the last 5 explain Keynes consumption
(Easiest way) Note that the optimum is where the slope of the indifference curve (MRS) is equal to the slope of the IBC (see Figure
and IBC slope = (1 + r)
What happens to C1 , C2 , and S if change Y1 , Y2 , or
Money does have a higher return in the underground economy.
Transactions theories of money (emphasize medium of exchange role)
What is the benefit of holding money? (liquidity, convenience)
What is the cost of holding money? (foregone
Production firms choose how much capital to rent K D by maximizing
max P F (K, L) RK W L
The solution for K
is the classic M P K = R/P
F (K, L)
Real revenue is (R/P )K
Real costs are:
Then investment can be written as the following function:
(r + ) + K
I = K + K = In M P K
Comparative statics: What happens to I if PK , F , L, r, change?
market value of installed capital
replacement cost of installed
Final Review for Chapters 119 and Epilogue
(focus on 1719)
December 8, 2010
The final for section 004 is scheduled for Tuesday, December 14 from 7:00 p.m.
to 10:00 p.m. in 274 MARB.
The final for section 005 is scheduled for Tuesday, De
SRAS: Y = Y + (P P e )
Phillips curve: = e (u u)
This is the least solid of Mankiws claims.
What we dont know
How should policy makers promote growth y?
Growth model: s, f 0 (k), , n, g
RBC model: A
reduce labor market frictions
Should policy mak
The optimal average money holdings are average money holdings with
the optimal number of visits to the bank N .
Define the money demand as the average optimal money holdings:
= L |cfw_z
i , |cfw_z
Y , |cfw_z
It is hard to meas
4. Milton Friedman: permanent income hypothesis
permanent income hypothesis: people choose consumption based on permanent income, and use saving and borrowing to smooth transitory variations in income.
Biggest of the three
Neoclassical model of investment
Most stable of the three
Supply and demand for housing
Most volatile of the three
Figure 4: Three components of U.S. investment [Ma
weak microfoundations/hard to interpret results
too many free parameters
cant use for analysis of policy for which we have no data
Because of the problems of the original RBC framework in matching the output
data with changes in productivity A and in
The Fed controls the amount of currency printed (monetary base
B), but not in circulation (money supply M S )
Define the reserve-deposit ratio (reserve requirement) as:
rr reflects bank preferences
Define the currency-deposit ratio as:
Brigham Young University
Does Risk Tolerance Inuence Entrepreneurial Entry?
An Empirical Study
DI. Michael Ransom
December 8, 2016 Introduction
Entrepreneurs are a fascinating phenomenon. As a past consultant for distressed small
businesses, I ma
This part of the exam consists of two questions. You are to complete these exercises ON YOUR
OWN, with no help from any other person. (But if you get stuck, please come talk to me and I
General Instructions: Please answer the following questions in your examination
booklet, in order. In your responses, provide complete information, including formulas
that you use. Show all steps so that partia