Chapter 12: Solutions to Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may
ECO 3101 PRACTICE MIDTERM EXAM
CH 2
Clara spends her entire budget and consumes 5 units of x and 13 units of y. The price of x is twice the
price of y. Her income doubles and the price of y doubles, but the price of x stays the same. If she
continues to b
Symbols used this Semester
Population
Sample
Mean
x
Median
M
# items collected
N
n
Variance
2
s2
Standard Deviation
s
Data Values
x
x
Proportion
p
^p
Descriptive Statistics
N
Mean
SD
Minimum
1st Quartile
Median
3rd Quartile
Maximum
Age
276
20.504
3.4171
1
6.18
Descriptive Statistics
N
Lo 90% CI
Mean
Up 90% CI
SD
Minimum
1st Quarti
Median
3rd Quarti
Maximum
RATE
30
77.885
79.733
81.582
5.9592
60.000
76.750
80.000
84.000
90.000
Floss Example
Hypothesis Test - One Proportion
Sample Size
Successes
Proportion
2
C H A P T E R
8
Wealth and Substitution Effects in Labor
and Capital Markets
We introduced income and substitution effects in Chapter 7 and now extend those
concepts to budgets that arise from endowments. The most important such budgets involve labor/leis
C H A P T E R
13
Production Decisions in the Short and
Long Run
We already saw in Chapter 12 that the single-input model in Chapter 11 was just a
slice of the 2-input model with capital held fixed. We now build on this insight
illustrating how short run
Chapter 11: Solutions to Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may
C H A P T E R
7
Income and Substitution Effects in
Consumer Goods Markest
In Chapter 6 we showed how economic circumstances combine with tastes to result in choice or behavior. In Chapter 7 we show how consumer choices (and thus
the consumer behavior we o
C H A P T E R
12
Production with Multiple Inputs
This chapter continues the treatment of producer theory when firms are price takers. Chapter 11 focused on the short run model in which capital is held fixed and
labor is therefore the only variable input.
Chapter 6: Solutions to Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may p
Chapter 4: Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may provide a grap
C H A P T E R
10
Consumer Surplus and Dead Weight
Loss
This chapter brings together all the concepts from consumer theory and in the
process illustrates the difference between (uncompensated) demand and marginal
willingness to pay (or compensated demand).
ECO 3101 Practice Final Exam
PLEASE READ: This exam consists of 13 questions. Your actual exam will consist of the same number
of questions, on the same topics. Questions 1 through 8 highlight material specifically covered during the
second half of this c
GAINS FROM TRADE
1)
Compare CT vs. CA
2)
How can the world produce (consume) more of both goods if the total supply of labor and
labor productivity remains constant? By using labor more efficiently that is, specializing in
the production of the good in wh
ECO 3101 Practice Final Exam
Profit Maximization (Varian Ch. 20)
1. A competitive firm produces output using three fixed factors and one variable factor. The firms short-run
production function is q = 524x 4x2, where x is the amount of variable factor use
ECO 3101 Practice Final Exam
Firm Supply (Varian Ch. 23)
2. A competitive firm uses two variable factors to produce its output, with a production function q = min(x1,
x2).The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack of wareho
The following is a set of nearly all the questions I have asked in Law and Economics during
the last decade. The questions do not always apply to this semester as the material changes.
In addition, there is no ordering of the questions as to which exam th
UNIVERSITY OF SOUTH FLORIDA
College of Arts and Sciences
Department of Economics
Lecture Notes
ECO 3101-001 Intermediate Price Theory
MW 2:003:15 p.m., CMC 204
Spring Semester 2017
J. S. DeSalvo
2. Consumer Choice
I. Introduction
A. Why Study This?
1. The
EFFECTS OF OPENING TRADE
JAPAN FREE: TRADE
CPC (slope=-1= -(P c/PW)W )
Qw
CW= MW=24
CT
16
C A=PA
PPC
0
PT
C C= 40
64
X C=64-40=24
QC
JAPAN: Producers and Consumers face the world price: (P C/PW) W =1 > (PC/PW)A=.25
Effects of Trade:
1) Production: R
NUMERICAL EXAMPLE : GAINS FROM TRADE WITN SIMILAR PRODUCTS and ECONOMIES OF SCALE
(INCREASING RETURNS)
ASSUMPTIONS:
1) Two varieties of Aircraft: Boeing (US) and Airbus(EU). Products are quite similar,but do offer different
characteristics).
2) Consumers
PROBLEM 1 Autarky Equilibrium
DATA:
LABOR PRODUCTIVITY COEFFICIENTS
Japan
Korea
Corn
aCL=4
aCL=1
Wine
a WL=1
a WL=2
Labor Supply
I.
L J=16
LK=16
Construct Production Possibilities Curve (PPC):
Japan: Find two combinations of Corn and Wine that Japan can p
Proof That HC wage (w) cannot fall to level of FC wage (w*)
1) Definitions:
Cost of producing a unit of wine
HC: (ACW) = w/aWL
FC: (AC*W) = w*/a*WL
Example: Suppose w= $12/hr and aWL =3 ACW = $12/3 =$4/unit
It costs $12 to produce 3 units of wine so one u
UNIVERSITY OF SOUTH FLORIDA
College of Arts and Sciences
Department of Economics
Lecture Notes
ECO 3101-001 Intermediate Price Theory
MW 2:003:15 p.m., CMC 204
Spring Semester 2017
J. S. DeSalvo
1. An Introduction to Microeconomics
I. Introduction
A. Chap
HO Model: Two Questions
1) Pattern of Comparative Advantage : (PC/PW)A vs. (PC/PW)*A
Depends on Relative Factor Endowments: HC vs. FC. General Relation:
Difference in Relative Factor Endowments Difference in autarky prices of labor and capital where
w = w
Chapter 7: Solutions to Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may p
Name 1
STUDENT
INSTRUCTOR
COURSE
DATE
Marlboros View on Smoking
It is widely known that smoking tobacco is extremely detrimental to a humans mental
and physical health. However, despite the increasing levels of awareness concerning the harms
of smoking, c
Chapter 3: Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may provide a grap
Relevant Material Chapter 11-13
You need to know the definitions, ideas, intuition, and graphical representation
(where relevant) for each of the ideas listed below. I included the graphs from the
textbook as a refere
Chapter 5: Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may provide a grap
Chapter 13: Practice Problems
TRUE/FASLE For each of the following statements determine whether it is true or false and
explain your answer. Simply putting T/F will be counted as a zero. Explanations should be short
and to the point, you may provide a gra