National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 2
Monopoly (C.24)
Question 3.1
Orange is the only firm that sells consumer good X. Show that if the demand
for
Problem Set #8
1. Joey has a sandwich shop located next to Chandlers cigarette store in a small shopping
mall. The number of customers who frequent the mall to shop at either store depends on
the amount of money the store spends on advertising in a day. I
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 1
Intertemporal Choice (C.10), Uncertainty (C.12)
Question 1.1
Margaret has a utility function U(c1, c2) = c1+c
EC3101 Homework Problem Set 1
The written solution is due on Friday, September 19, at 5 pm. The solution must
be dropped in the mailbox of Indranil Chakraborty on the 6th
oor of AS-2 near the
Economics General O ce. Please write your (i) name, (ii) matri
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 1
Intertemporal Choice (C.10), Uncertainty (C.12)
Question 1.1
Margaret has a utility function U(c1, c2) = c1+c
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 4
Oligopoly (C.27)
Question 4.1
Alex and Anna are the only sellers of kangaroos in Sydney. Anna chooses her
pro
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 2 AY 2014/2015
Practice Problem Set 3
Monopoly (C.24)
Question 3.1
Orange is the only firm that sells consumer good X. Show that if the demand
for
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 3
Oligopoly (C.27)
Question 4.1
Alex and Anna are the only sellers of kangaroos in Sydney. Anna chooses her
pro
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 4
Oligopoly (C.27)
Question 5.1
In Pulau Kawai, consumers purchase smartphones without a phone plan.
There are
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 5
Exchange (C.31)
Question 5.1
An economy has two people, Ah Meng and Jojo. There are two goods, bananas and
2
Ho Kong Weng
What is the overall fiscal position (budget
deficit or surplus) of the Singapore
government? Implications on interest rate
and investment?
How will it change in the long-run future?
Factor markets and aggregate supply (AS)
Consumption, invest
Todays plan
Adverse Selection
Signaling
Moral Hazard
Incentive Contracts
1
Signaling
Adverse selection is an outcome of an
informational deficiency.
We saw that high quality sellers (e.g. Peach sellers)
lose out when adverse selection is present in
Problem Set #9
1. The neighbourhood of Clementi wants to build a new public park. There are 1000
citizens of Clementi who consume only one private good, satay (denoted ). All citizens
have the same utility function: ( , ) =
100
where is the size of the p
CHAPTER TEN:
INTERTEMPORAL CHOICE
1
Intertemporal Choice
Consumers are deciding how to allocate
consumption of a good between two
periods: 1 vs. 2 .
The price of consumption is given by
the interest rate .
If > 0, consuming in period 2 is
cheaper because
Chapter 35:
Externalities
What not to read
35.1: Shows how you can model externalities
using the Edgeworth box. Interesting but
optional
35.2: Not necessary
2
Todays plan
Externalities
Definition and concept
An example
Internalizing the externality
The
Week 3 Problem Set
1. Calculate the following:
a. The present value of $1,000,000 delivered 20 years in the future if the interest rate
is 20%.
b. The value of $1,000,000 20 years from now if the interest rate is 15%
c. The present value of a bond which p
Problem Set #10
1. Old MacDonald has a farm (E.I.E.I.O). The farm produces hay. He has a single employee,
Jack. If Jack works for hours he can produce bales of hay. Each bale of hay sells for
2
$1. The cost to Jack of working hours is () = 10.
a. How much
Problem Set #10
1. Old MacDonald has a farm (E.I.E.I.O). The farm produces hay. He has a single employee,
Jack. If Jack works for hours he can produce bales of hay. Each bale of hay sells for
2
$1. The cost to Jack of working hours is () = 10.
a. How much
Week 12 Problem Set
1. Joey has a sandwich shop located next to Chandlers cigarette store in a small shopping
mall. The number of customers who frequent the mall to shop at either store depends on
the amount of money the store spends on advertising in a d
Week 13 Problem Set
1. The neighbourhood of Clementi wants to build a new public park. There are 1000
citizens of Clementi who consume only one private good, satay (denoted ). All citizens
have the same utility function: ( , ) =
100
where is the size of
Problem Set #8
1. Joey has a sandwich shop located next to Chandlers cigarette store in a small shopping
mall. The number of customers who frequent the mall to shop at either store depends on
the amount of money the store spends on advertising in a day. I
EC3101: Problem Set #1 for Week 3 Discussion Groups
1. Calculate the following:
a. The present value of $1,000,000 delivered 20 years in the future if the interest rate
is 20%.
b. The value of $1,000,000 20 years from now if the interest rate is 15%
c. Th
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 2 AY 2014/2015
Practice Problem Set 6
Game Theory (C.28)
Question 6.1
Evangeline and Gabriel met at Orientation. They want de
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 4
Oligopoly (C.27)
Question 5.1
In Pulau Kawai, consumers purchase smartphones without a phone plan.
There are
1. (3 Points) The interest rate on borrowing and lending on the Isle of Econ is xed
at 50%. The general price ination rate is 40%. The real interest rate for the island is.
1
(i) = 40
2
(ii) = 35
(iii) = 14
1
(iv) = 14
(v) None of the above
2. (3 Points)
EC3101 Homework Problem Set 1
The written solution is due on Friday, September 19, at 5 pm. The solution must
be dropped in the mailbox of Indranil Chakraborty on the 6th oor of AS-2 near the
Economics General O ce. Please write your (i) name, (ii) matric
5.1. Ah Mengs and Jojos utilities are UM = 2BM CM and UJ = BJ CJ . Their initial
endowments are eM = (20; 5) and eJ = (20; 3):
First a few things to note:
(i) An allocation is just any distribution of goods among the two agents. (ii) The
initial endowment
National University of Singapore
Department of Economics
EC 3101 Microeconomic Analysis II
Semester 1 AY 2014/2015
Practice Problem Set 5
Exchange (C.31)
Question 5.1
An economy has two people, Ah Meng and Jojo. There are two goods, bananas and
2