ECON 1005 Principles of Economics I: Microeconomics
Semester 1, 2016/17
Tutorial Exercises 1
Coverage: Topic 1 to 3 (to be discussed in week 5)
Discussion Question 1
a. Suppose the salt market is competitive. If a government imposes a binding price ceilin
Chapter 2
Multiple Choice Questions
1.
a.
b.
c.
d.
An individuals value for a good or service is the
The amount of money he or she used to pay for a good
The amount of money he or she is willing to pay for it
The amount of money he or she has to spend on
ECON 3005 Applied Econometrics
HW1 Review of Probability & Statistics
[1] Calculate the following probabilities using standard normal distribution. Sketch the probability
distribution in each case, shading in the area of the calculated probability.
(a) (
CHAPTER 4
1
SIMPLE REGRESSION MODEL
E S T I M AT I O N
Regression Analysis
2
Regression analysis is used to:
Predict the value of a dependent variable based on the
value of at least one independent variable
Explain the impact of changes in an independent
CHAPTER 7
1
M U LT I P L E R E G R E S S I O N M O D E L
HYPOTHESIS TEST
Types of Hypothesis
2
In a multiple regression model, various of hyp
otheses can be carried out:
Single restriction for single coefficient
Multiple restrictions
Overall significance
CHAPTER 8
1
NONLINEAR REGRESSION FUNCTION
Variety of Models
2
Linear model:
Nonlinear in X:
Nonlinear in Y:
Nonlinear in Y and X:
Linear Model
3
Constant slope Effect of X on Y is the same
for all values of X
Example:
Partial effect of =
Constant Slope
No
CHAPTER 6
1
M U LT I P L E R E G R E S S I O N M O D E L
E S T I M AT I O N
Multiple Regression Model
2
Population multiple regression model:
are unknown population parameters
are independent regressors
is the regression error
Assumptions:
:
and are uncor
CHAPTER 11
1
B I N A R Y D E P E N D E N T VA R I A B L E
Applications
2
Dependent
variable is a binary variable/ a choice va
riable
if the economy is in recession; 0 otherwise
if the issued bond is Grade Aa; 0 otherwise
if the customer chooses Coke; 0 ot
CHAPTER 5
1
SIMPLE REGRESSION MODEL
HYPOTHESIS TEST
Sampling Distribution of OLS Slope Parameter
2
The variance of
is:
is the variance of the regression error which
can be estimated by
Therefore, standard error of
by
can be
Seen
that
before?
estimated
Hy
CHAPTER 1
CHAPTER 2
1
INTRODUCTION
REVIEW OF PROBABILITY
Introduction Economic Questions
2
What is the quantitative effect of class size on student a
chievement? (Microeconomics)
How does minimum wage affect unemployment? (Labor economic
s)
What will the
CHAPTER 3
1
R E V I E W O F S TAT I S T I C S
Population Mean
2
Our variable of interest is the population mea
n of ()
Given a set of observations () which is drawn
from an independent and identical distribution
, we can compute sample average
An estimato
CHAPTER 10
1
R E G R E S S I O N W I T H PA N E L D ATA
Feature of Panel Data
2
Panel data has 2 dimensions:
Cross-sectional units (Individuals, Firms, Countries)
Time series dimension
Other names:
Longitudinal data
Repeated measures
Types of panel:
Sh
ECON 1005 Principles of Economics I
Semester 1, 2015/16
Homework Exercises 4: Consumer Choice
1a. The original equilibrium is at point A.
1b. The new budget line is BL2. The new tangency must occur at a point with more than 25
pounds of potatoes, for inst
ECON 1005 Principles of Economics I: Microeconomics
Semester 1, 2015/16
Homework Exercises 5: Production
1a.
Number of Accountants
0
1
2
3
4
5
Marginal Product
0
5
7
5
3
2
1b. Increasing marginal returns to labor are evident for the range between 0 and 2
ECON 1005 Principles of Economics I
Semester 1, 2015/16
Homework Exercises 3: Elasticity
1. a. They should increase their price to $40/hour. Given that the price elasticity of demand for
their service is 0.5 (i.e. it is inelastic), their revenue will incr
ECON 1005 Principles of Economics I
Semester 1, 2015/16
Homework Exercises 2: Demand and Supply
1. The demand curve for fish will shift to the left as consumers worried about the safety of fish
consumption. This leads to a lower equilibrium quantity of fi
University English II Supplementary Learning Materials- Unit 9: Law and Society
University English II
Supplementary Learning Materials
Unit 9: Law and Society
Summary of contents
Content
Page
I. Quotations on society and law.
2
II. Facts/data
3
The top te
University English I Supplementary Learning Materials- Unit 3: International Relations
University English I
Supplementary Learning Materials
Unit 3: International Relations
Summary of contents
I.
Quotations on international relations . 2
II.
Facts/data: S
University English I Supplementary Learning Materials- Unit 6: Technology and Change
University English I
Supplementary Learning Materials
Unit 6: Technology and Change
Summary of contents
I. Quotations on technology . 2
II. Facts/data: e-waste data . 4
I
CHAPTER
5
APPLICATIONS OF RATIONAL
CHOICE AND DEMAND THEORIES
I
nevitably, some claims for publicly provided social assistance or welfare payments
involve misrepresentation or fraud. The proportion across Canada has been
estimated to be as high as 2 perce
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Web Supplement
to Chapter 5
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ADDITIONAL APPLICATIONS
OF RATIONAL CHOICE AND
DEMAND THEORIES
5S.1 An Application of the Rational Choic
CHAPTER
5
Applications of
Rational Choice and
Demand Theories
nevitably, some claims for publicly provided social assistance or welfare payments
involve misrepresentation or fraud. The proportion across Canada has been
estimated to be as high as 2 percent
Topic 6: Differentiation
Jacques Text Book (edition 4 ):
Chapter 4
1.Rules of Differentiation
2.Applications
1
Differentiation is all about measuring change!
Measuring change in a linear function:
y = a + bx
a = intercept
b = constant slope i.e. the impac
CHAPTER 4
THE MARKET FORCES OF SUPPLY AND DEMAND
0
Markets and Competition
A market is a group of buyers and sellers of a particular
product.
Organized or loosely-connected
A perfectly competitive (
market:
all goods exactly the same
Numerous buyers
A scenario
You design websites for local businesses (and
also you are the only able designer in town).
You charge $200 per website, and currently sell
12 websites per month.
Your costs are rising (including the opp. cost of
your time), so youre thinking o
How do Government Policies affect supply
and demand?
In a free, unregulated market system, the
market prices may be perceived as unfair by
either side of the market.
In response, the government sometimes
exercise price control policies.
CONTROLS ON PRIC
Principles of Microeconomics (Dr. Darren Weng)
Assignment One
Due Monday, October 27, beginning of lecture
Mankiws textbook behind-the-chapter problems:
Ch2 Think Like an Economist
P39: Problems 4 & 6
Ch3 Gains from Trade
P61: Problem 2
P62: Problems 8 &
The Science of Economics, one of the most welldeveloped social sciences, is interested with an
endless list of questions that surround us:
Why do airlines charge less for a round-trip ticket if the
travelers stay over a Saturday night?
Why are pro-basketb
THE ECONOMIST AS A SCIENTIST
The economic way of thinking . . .
Involves thinking analytically (quantitative)
and objectively (measurable).
Makes use of the scientific method.
Develops theories, collects and analyzes data to
evaluate the theories.
Use