Practice problems for Econ 1530 Sections C and D York University Fall 2005
Problem 1. A quantity K grows by 2% per year (with annual compounding). After 4 years the quantity has increased to: (a) K(1.02)4 (b) K(1.04)2 (c) K(1.02)2 (d) K(1.04)4 Problem 2.
Chapter 4
Utility Functions
Utility
Ordinal Utility: The only property of a utility
assignment is how it orders the bundles of goods.
The size of the utility difference between two
bundles does not matter.
Cardinal Utility: It attaches a significance to
Chapter 3
Preferences
Assumptions about Preferences
Complete-Compare two bundles, A and B. There are three
possibilities: A is preferred; B is preferred; they are
indifferent
Reflexive-Any bundle is as good as itself, I.e., A>=A. (note:
> represents is
Chapter 2
Budget Constraint
The Budget Constraint
m=p1*x1+p2*x2
where m=income, assumed to be given
p1=price of x1, assumed to be given.
p2=price of x2, assumed to be given.
02.01
Key elements that affect the budget
line
m (shifting the line up or down
1. What is wrong with the following definitions?
Fish are creatures that live in the water.
A golf ball is a ball used to play golf.
Dogs are creatures used to retrieve ducks for hunters.
2. Identify the following fallacy
The question of the huge loss of
Ch. 5 Capital Allocation to Risky
Assets
Questions:
What is risk aversion?
How to construct portfolios of different
risk levels, given information about the
risk-free rate and the returns on risky
assets?
How can we calculate the expected
return and s
Chapter 7
Using Indicator Variables
Walter R. Paczkowski
Rutgers University
Principles of Econometrics, 4th
Edition
Chapter 7: Using Indicator Variables
Page 1
Economists develop and evaluate theories about
economic behavior
Hypothesis testing procedures
Chapter 6
Further Inference in the Multiple
Regression Model
Walter R. Paczkowski
Rutgers University
Principles of Econometrics, 4th
Edition
Chapter 6: Further Inference in the Multiple Regression Model
Page 1
Chapter Contents
6.1 Joint Hypothesis Testin
Chapter 5
The Multiple Regression Model
Walter R. Paczkowski
Rutgers University
Principles of Econometrics, 4th
Edition
Chapter 5: The Multiple Regression Model
Page 1
Chapter Contents
5.1 Introduction
5.2 Estimating the Parameters of the Multiple
Regre
Chapter 4
Prediction, Goodness-of-fit, and
Modeling Issues
Walter R. Paczkowski
Rutgers University
Principles of Econometrics, 4th
Edition
Chapter 4: Prediction, Goodness-of-fit, and Modeling Issues
Page 1
Chapter Contents
4.1 Least Square Prediction
4.
YORK UNIVERSITY Faculty of Arts Department of Economics
Introductory Mathematics for Economists AS/ECON1530 3.0 C and D Fall 2005
This version updated 5 December 2005
Instructor: Nils-Petter (Nippe) Lagerlf o E-mail: lagerlof@econ.yorku.ca Oce: Vari Hall
Second Midterm Exam for Econ 1530 Section D York University
15 November 2005 First name: Last name: SID number: Instructions: Write your name and SID number above; circle your answer below, and ll out the same answer on the bubble sheet (as well as SID nu
Chapter 5
Choice
Utility Maximization
Max U(x1, x2)
subject to I=p1*x1+p2*x2, where
I=income, p1=price of x1,
p2=price of x2, assumed to be
given exogenously.
Factors determining the U and constraint
functions
The slope of U=MU1/MU2
The slope of budge