Applied Microeconomic Theory:
Problem Set 2 (Consumer Theory)
Due September 23
1. Dilbert spends his entire income of $50 a month on hours of internet access (x) and
other goods (y). Draw is budget constraint for each of the following situations. Please
u
Applied Microeconomic Theory:
Problem Set 2 (Consumer Theory)
Due September 25
1. Dilbert spends his entire income of $50 a month on hours of internet access (x) and
other goods (y). Draw is budget constraint for each of the following situations. Please
u
Applied Microeconomic Theory:
Homework 4
Due November 4
1. Consider the market for vegetable ber. Vegetable ber is traded in a highly competitive world market, and the world price is $9.00 per pound. Unlimited quantities are
available for import in the Un
Applied Microeconomic Theory:
Homework 3
Due October 16
1. Duane breeds parrots for a living. He has discovered that the production function for
parrot chicks, q, is
1 1 1
q = K 2 L2
2
where K is the amount of capital and L is the amount of parrot food. T
Applied Microeconomic Theory:
Homework 3
Answer Key
1. Duane breeds parrots for a living. He has discovered that the production function for
parrot chicks, q, is
1 1 1
q = K 2 L2
2
where K is the amount of capital and L is the amount of parrot food. The p
1. (20 points)Eaeh day Rob eats lunch at work. He likes only carrots (c) and pears (p),
and these provide him with a utility of
Map) = (03 +p3li
Rob has $w dollars to spend on the two goods.
(a) Find Rob’s Marshallian (uncompensated) demands for carrots a
The American Experience as Told through Autobiographies
UGS 302 (61815).Fall 2016.TTh 12:30-2 pm.CAL 22
Michael Craig Hillmann, Course Instructor
Calhoun 400, office hours: TTh 9:30-11 am, and by appointment
[email protected], [email protected]
CHAPTER 5
The classical theory of inflation
causes
effects
social costs
Classical assumes prices are flexible &
markets clear
Applies to the long run
CHAPTER 5
Inflation
1
The classical theory of inflation
As was true for chapter 3, Classical theor
Chapter one - definitions
What is an economic model?
What is meant by equilibrium?
What causes demand for some service or commodity to
increase? (movement along a demand curve versus shift
of demand curve)
What causes the supply of this service to inc
CHAPTER 2
the meaning and measurement of the
most important macroeconomic statistics:
gross domestic product (GDP)
the consumer price index (CPI)
the unemployment rate
1
Stocks vs. Flows
Stock: measured at a point in time; a photograph
Flow: measured pe
CHAPTER 4
the definition, functions, and types of money
how banks create money
what a central bank is and how it controls the
money supply
CHAPTER 4
The Monetary System
1
Monetary and fiscal policy
The two areas of macroeconomic policy are
monetary po
Chapter 20
Summary of The Financial System and the
Financial Crisis of 2008-2009
CHAPTER 20
The Financial System
1
Review and overview
Historic damage to the financial health of
the US economy
The Great Recession of 2008 and 2009
compared with the Grea
Chapter 6-OPEN ECONOMIES
Open Economies are economies that trade with other
economies.
All economies are integrated into a larger world
economy.
Economies do not exist in isolation but have extensive
trading relations with the rest of the world.
Relat
O 1.
x1,
km A» (a)
The market for candy corn is made up of 100 identical ﬁrms. Each ﬁrm has a. shorturun
total cost curve of:
T0 = 25 #2:; + (12
where q is measured in bags per year. The market demand curve for candy corn is:
C. mes leavt W! “M ul “Md
l’:
l. (20 points) Boeing Aircraft produces airplanes according to the production tunction:
q=m%¢%
where K is the number of units of capital and L is the number of units of labor.
Deﬁne w as the price of a unit. of labor, and r as the price of a unit of capi
Applied Microeconomic Theory:
Final Exam!
December 16
1. (20 points) Robs utility from consuming coee (c) and licorice (l) is dened by the
function:
1
1
U (x, y) = (c 3 + l 3 )3
(a) Rob has w dollars of non-labor income. Assuming that the price of coee is
Applied Microeconomic Theory:
Final Exam!
May 4
1. (20 points)Each day Rob eats lunch at work. He likes only carrots (c) and broccoli (b),
and these provide him with a utility of
1
U (c, p) = (c3 + b3 ) 3
Rob has $w dollars to spend on the two goods.
(a)
Applied Microeconomic Theory:
Midterm #2
November 18
1. The market for candy corn is made up of 100 identical rms. Each rm has a short-run
total cost curve of:
T C = 25 + 2q + q 2
where q is measured in bags per year. The market demand curve for candy cor
Applied Microeconomic Theory:
Midterm #1
October 7
1. When oered a wage rate of $10 per hour, George chooses to work 10 hours per day
at the Nuclear Power plant. Suppose instead he was oered $9 per hour for the rst
8 hours and $14 per hour for any additio
*7)
1. When offered a wage rate of $10 per hour, George chooses to work 10 hours per day
at the Nuclear Power plant. Suppose instead he was offered $9 per hour for the ﬁrst
8 hours and $14 per hour for any additional time he works. Depict the situation on
Applied Microeconomic Theory:
Midterm #1
February 23
1. (15 points) Jack and Jull dier in their preferences for beer and pizza. Specically,
Jack likes pizza relative to beer more than Jill. If both Jack and Jill pay the same
prices for beer and pizza, can
1. (15 points) Jack and Jull differ in their preferences for beer and pizza. Speciﬁcally,
Jack likes pizza relative to beer more than Jill. If both Jack and Jill pay the same
prices for beer and pizza, can you tell who has the higher marginal rate of subs
Applied Microeconomic Theory:
Midterm #2
April 6
1. (20 points) Boeing Aircraft produces airplanes according to the production function:
1
q = (K 3 + L3 ) 9
where K is the number of units of capital and L is the number of units of labor.
(a) Dene w as the
Applied Microeconomic Theory:
Problem Set 1 Answers
September 12, 2006
For questions 1-5, nd
f (x,z)
x
(where x and z are variables) and simplify.
1. f (x) = 3x2
f (x) = 6x
2
2. f (x) = ( x +x )4
12x
f (x) = 4(
x2 + x 3 (2x + 1)(1 2x) (x2 + x)(2)
)(
)
1 2
1. Joe derives utility from his consumption of wine (we) and cheese (6) according to the
function:
Mm, c) = w2 + 21m: + (:2
(3.) Deﬁne pm as the market price of wine1 pc as the market price of cheese, and I as
Joe’s income. Calculate Joe’s Marshallian dem
Applied Microeconomic Theory:
Problem Set 1 (Math Review)
Due September 11
For questions 1-5, nd
f (x,z)
x
(where x and z are variables) and simplify.
1. f (x) = 3x2
2
2. f (x) = ( x +x )4
12x
3. f (x) = ln x2
4. f (x) = 3e5x
5. f (x, z) = 30 2x2 + z 3xz
Applied Microeconomic Theory:
Homework 5
1. Suppose that there are only two rms that produce widgets, Firm 1 and Firm 2. The
two rms face the following inverse market demand curve for widgets:
P = 90 2Q.
Both rms have a constant marginal cost of $10, and