You have substantial latitude about what to emphasize in Chapter 1. I find it useful to talk about
the economics of crime example (Example 1.1) and the wage example (Example 1.2) so that
students see, at the outset, that econometr
Problem Set 1
Due on March 16
1. Prove the following statements are true.
1) The percentage change of a product of two variables is approximately the sum of the percentage
changes in each of the variables. That is,
Problem Set 4
1. 2nd edition textbook, Chapter 9, Problem 2. (3rd edition, Chapter 9, Problem 2)
(a) The production function is depicted as the figure below.
(b) Marginal product is as follows.
Problem Set 3
Due on April 13th
2nd edition textbook, Chapter 8, Problem 1.
(OR 3rd edition textbook, Chapter 8,
Given Information: y = 100, y = 120, t = 20, t = 10, r = 0.1
(a) To calculate wealth, we
Problem set 6
Due on June 9
1. The 2nd edition textbook, Chapter 13, Problem 6. (OR the 3rd edition textbook,
Chapter 13, Problem 6.)
(a.) If Ricardian equivalence holds, then the level of lump-sum taxation has no effect
on the current account. The first
Suppose that the government imposes a producer tax. That is, the
firm pays t units of consumption goods to the government for each
unit of output it produces. Determine the effect of this tax on the
firms demand for