John Russo EC301 September 8, 2008 Homework #1 1) a) 208.8100*1.88=3.93 The real price has decreased from $3.93 in 1980 to $2.52 in 2000. b) 2.52-3.933.93= -35.9% The percentage change in real price from 1980 to 2000 is a decrease of 35.9%. 2)
3)
L
Michigan State University
Spring Semester, 2017
Intermediate Microeconomics
EC 301-02
Tu Th 2:404:00 PM
116 Farrall Ag Eng Hall
Preface:
Arijit Mukherjee
Office: 110 Marshall Adams Hall; Room 18F
Office hours: Tu Th 1112 PM (or by appointment)
Email: arij
EC 301 Spring 2017: Problem set 1
Assignment date: Jan 19, 2017
Due date: Feb 2, 2017
Total Points: 15 points
Note: Your score will be based on your overall performance in answering all questions
in this problem set. Answers to specific questions will not
ECONOMICS 480: ANALYSIS OF LABOR MARKETS
Spring 2017
Problem Set 1
Total points in the problem set: 100
Due: Tuesday Feb 7, before class
1. (1 pt) Which is not a decision made by potential workers in the United States?
(a) Deciding whether or not to parti
Chapter 2
Sample Problems
1. Assume the demand for ice cream takes the following form:
If the price of yogurt is $4.00, the price of a wae cone is $3.00 and the average income is $32,000,
what is the demand function for ice cream? Graph it below.
Answer:
1/26/16
OUTLINE
Overview of Macroeconomics
and
Macroeconomic Data
Macroeconomic Data
National income accounting: GDP and related concepts.
National saving, inflation and real vs. nominal interest rates.
Readings:
ABC Chapter 1 - Sections 1.1 and 1.3
ABC
2/16/16
OUTLINE
The production function: A basic building block of economics
Growth, Cycles
Long-run economic growth
and Fiscal Policy
Topic 2
Business cycles
The macroeconomics of fiscal policy
Readings:
ABC Chapter 3 Section 3.1
ABC Chapter 8 Sectio
Solution to In-Text Exercise 15.2:
The figure below shows the before-subsidy price as P0 and the before-subsidy quantity as Q0.
Consumer surplus is areas A + B and producer surplus is areas C + D.
After the subsidy is imposed, buyers pay price Pb and sell
Solution to In-Text Exercise 15.1:
In Worked-Out Problem 15.1, which has the same demand and supply functions as this
exercise, without the tax aggregate surplus is $35 billion per year, consumer surplus is $25
billion per year, and producer surplus is $1
Solution to In-Text Exercise 9.5:
The best positive quantities solve the following two equations:
Solving tells us that QB = 40 and QC = 5. This yields a profit of $1,825, which is better than
shutting down completely and earning zero. It also exceeds the
Solution to In-Text Exercise 9.4:
First we consider the long-run supply function. If MCLR = 200, then for prices above $200 the
condition P = MCLR can never be satisfied. In this situation, P will always be greater than MCLR,
so the firm would want to sel
Homework 6: Analysis of Perfect Competition; Monopoly (to be handed in on Tuesday 23rd March)
1. Suppose the supply curve for a good is completely inelastic. If the government imposed a price
ceiling below the market-clearing level, would a deadweight los
Homework 5: Perfect Competition (to be handed in on Thursday 4th March)
1. What is the difference between economic profit and producer surplus? (1 point)
Economic profit is the difference between total revenue and total cost. Producer surplus is the
diffe
Homework 4: Cost of Production (to be handed in on Thursday 26th February)
1. Gertrude, a second year MBA student, takes three hours off one evening, and uses her car to go to a
movie with a friend. A ticket to the movie costs Gertrude $10, gas for the tr
Homework 3: Production
1.
ANSWERS
In filling a vacant position, you should be concerned with the marginal product of
the last worker hired because the marginal product measures the effect on
output, or total product, of hiring another worker. This in turn
Sample Short Answer/Problem Questions
Question 1: Price Discrimination Part A: The local zoo has hired you to assist them in setting admission prices. The zoos managers recognize that there are two distinct demand curves for zoo admission. One demand curv
Homework 7: Price Discrimination (to be handed in on Tuesday 6th April)
1. Suppose a firm can perfectly price discriminate. What is the lowest price it will charge, and what
will its total output be? (1 point)
When a firm can perfectly price discriminate,
MID-TERM #2: Thursday 25th March
i.
Please be in your seats five minutes before class starts so that we can start on time.
You will have the full class period to complete the test.
ii.
I will provide the test booklet and the Scantron. You need to bring a
Homework 10: Externalities (to be handed in on Thursday 29th April 2004)
1. Which of the following describes an externality and which does not? Explain your answer (1
point)
a) A policy of restricted coffee exports in Brazil causes the US price of coffee
Review Session #1: Answers to Short Essay/Problems Question 1: Basics of Supply and Demand 1a) Suppose that we are analyzing the market for hot chocolate. Sketch a basic supply and demand diagram, and state the impact on the equilibrium price and quantity
Homework 9: General Equilibrium (to be handed in on Thursday 22nd April)
1. Using the Edgeworth box diagram, answer the following: (4points)
a) How can one point simultaneously represent the market baskets owned by two different
consumers? The Edgeworth b
Solution to In-Text Exercise 14.1:
At prices above $4, no one wants to buy ice cream. At prices below $4 but above $3, only Juan
wants to buy ice cream. At prices below $3, both Juan and Emily want to buy ice cream.
Therefore,
cfw_
The sum of Juans and E