Solutions to Midterm Test I (Stream 1)
Time: 70 mins+ 5 mins. reading time.
Note: The Exam consists of two sections. Section A consists of four true/false
choice questions. This section is worth 14 po
Econ5001 Microeconomic Theory, Semester 2, 2015
Problem Set 1
Note. These are questions relating to Choice Sets/Budget Sets. We shall go over these
of these exercises in class, in the week of Aug. 4,
lOMoARcPSD
Sample/practice exam 8 September 2015, questions and
answers - quiz 1
Microeconomic Theory (University of Sydney)
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CHAPTER 5-Choice
TRUE/FALSE
2. Max Gross has the utility function U(x, y) = maxcfw_x, y. If the price of x is the same as the price of y,
Max will buy equal amounts of x and y.
ANS: F
DIF: 2
4. Sharon
ECON 5001: Sample Midterm Test I
Section A - True/False Questions:
Instructions: Answer all questions in this section. You must explain your
answer.
(i) A consumers utility function is U = mincfw_x1 ,
Questions for Quiz I
Econ5001, Semester 2, 2015
Instructions Please read rst. Follow these steps in order to do the quiz.
(1) This le contains Questions to Quiz 1. Download this le.
(2) Solve and note
Intertemporal Choice
27. In the intertemporal budget constraint, the slope of the budget line
olEl Ultimately depends only on the real interest rate;
[(blll Ultimately depends only on the nominal inte
Choice under Uncertainty
ECON 5001
Lecture 8 Ch 17
Results: midterm exam
We have not finished grading yet
Exam+solutions will be posted on blackboard
2
Choice under uncertainty
Consumers face risk
SCHOOL OF ECONOMICS
FACULTY OF ARTS AND SOCIAL SCIENCES
ECON5001
Microeconomic theory
Semester 1, 2013
Unit of Study Outline
UoS Coordinator: Oleksii Birulin
Email: [email protected]
Tel:
Quiz 2,
ECON 5001 Microeconomic Theory, Semester 2, 2015
Note. You will have to log back into Blackboard and submit your answers by 5 PM,
Monday 31 August.
Exercise 1. To ensure that our receipe invol
ECON5001, Semester 2, 2015
QUIZ 3 PROBLEMS:
NOTE: Solve each of the problems. Go to the Quizzes section on Blackboard and submit
the answers online by 12 Noon, Monday, October 19.
1. Consider the long
Choice under uncertainty
ECON 5001
Lecture 8 Ch 17
Choice under uncertainty
n Consumers face risk (uncertainty)
Take/buy an umbrella? (will it rain?)
n Get health insurance?
(get sick?)
n Which degree
Assignment 2
1
Econ5001 Microeconomics, Semester 2, 2016
Assignment 2
Exercise 1. Draw some sample indierence curves of a consumer such the following
conditions
1. For a given amount of G2 she prefers
Practice Questions
1) Draw two indifference curves (between items x1 and x2)
for each of the following and indicate the direction of utility
increase.
a. I like more of the first commodity x1 but I do
Adverse Selection Models
In many situations, participants in one side of
the market have more information than the participants on the other side.
For example, in the context of a job market, the
jo
Some More Problems
Section A - True/False Questions
(i) A consumers utility function is U = 2x1 + x2 . At p1 = 2 and p2 = 2 and
m = 30, the consumers utility maximizing choice is x = (10, 5).
(ii) Int
Example 1.
An individual plans to buy a car.
The quality of the car, however, is uncertain, it
can be good or bad.
If the car is of good quality, individuals utility
is ug .
similarly, ub denotes
Game theory studies strategic interaction among
the agents.
Payoffs to each agent/player depends on actions
taken by all players.
Formally, a game consists of three components:
(i) the set of playe
Risk Aversion and Insurance
A are the set of money prizes.
Given a lottery L = (p1, p2, . . . , pn) on A, the
expected value of lottery L is defined as
X
piai
E(L) =
i
Definition 1. An agent with u(
ECON 5001: Sample Midterm Test II
Section A - True/False Questions
Instructions: Answer all questions in this section. You must explain your
answer.
(a) In a Nash bargaining solution, we are told that
ECON 5001: Review Questions
Final Exam
Section A: True or False
(a) A consumer demands the bundle (3, 4) when her income is 14 and prices
are p1 = p2 = 2. When prices are p1 = 2 and p2 = 4, she choose
ECON 5001: Game Theory II
Games in Extensive Forms
A game in extensive form consists of
the player set N = cfw_1, 2 . . . n.
each player having a set of decision nodes Di.
the set of actions Ai tha
ECON 5001: Some More Problems
(1) Mr. X, a risk neutral agent, is participating in a guessing game. There
is an urn containing 100 balls. There are two equally likely states 1
and 2. In state 1, all b
Lecture Notes 3a: Producer Theory Continued
Profit maximization when both inputs are variable
In Lecture Notes 3, we have studied how a firm solves the cost minimization problem. Given any input price
Lecture Slides 1
Consumer Theory
Consider an individual who has to choose from a set
of alternatives, X.
Denote by x, y, z, a representative element of X.
The individual is able to rank these alter
Lecture Notes 3a: Producer Theory Continued
Profit maximization when both inputs are variable
In Lecture Notes 3, we have studied how a firm solves the cost minimization problem. Given any input price
Lecture Notes 3b: Producer Theory Continued
Profit maximization when both inputs are variable
Marginal Cost Given any cost function, C, the marginal cost refers
to the change in cost for a small chang
Sample Questions for EXAM I
Section A - True/False Questions
Instructions: Answer all questions in this section. You must explain your
answer.
(i) A consumer maximizes utility function which is given
Solutions to Midterm Test I (Stream 1)
Time: 70 mins+ 5 mins. reading time.
Note: The Exam consists of two sections. Section A consists of four true/false
choice questions. This section is worth 14 po