APPLIED MICROECONOMICS
ROSS SCHOOL OF BUSINESS
UNIVERSITY OF MICHIGAN
PRACTICE PROBLEMS
MODULE: Demand
1. According to a 1989 Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit Over
AT&T Ad Claims," MCI was upset with AT&T over allege
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 23, Monday
Adverse Selection and Moral Hazard
Overview
The standard model of competitive equilibrium assumes that there
is perfect information about the products and pr
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 30, Monday
Signaling
Overview
The standard model of competitive equilibrium assumes that there
is perfect information about the products and prices in the
economy, so t
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 25, Wednesday
Screening
Overview
The standard model of competitive equilibrium assumes that there
is perfect information about the products and prices in the
economy, s
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 18, Wednesday
Public Goods and Externalities
Overview
This lecture explores externalities and public goods, both sources
of market failure. The standard model of compet
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 16, Monday
Imperfect Competition: Oligopoly
Overview
Perfect competition and monopoly are two extremes ion terms of
market structure. This lecture introduces the idea o
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
October 26, Monday
Competitive Markets
Overview
This is our second lecture on rms. The previous lecture examined
prot maximization, taking as given the environment in which the
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 4, Wednesday
Existence of Competitive Markets
Overview
This lecture considers the existence of competitive equilibria. This
initially seems like an esoteric, if not com
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
November 2, Monday
Eciency of Competitive Markets
Overview
This is the second of three lectures on the theory of competitive
equilibrium (or general equilibrium). The rst lectur
1. While driving with his father, Amit holds his breath whenever they pass through a
particular tunnel. Amit counts the number of seconds he holds his breath, from the
beginning of the tunnel to the end of the tunnel, and finds that he holds his breath,
o
LEVEL 3
1.
Playing tennis
Playing squash
Energy
expenditure
rate
kJ
h
1,594
2,726
kJ
h
Oxygen
consumptio
n rate
Fat burning
77
L
h
130
L
h
g
r
rate
h
The table above lists average expenditure rates of playing tennis
49
vs. playing squash based on a body w
1. The scatterplot to the left displays the percentage, P, of paper consumed in the United States
(US) that has been recycled from 1990 to 2012, where t represents years since 1990. Which of
the following equations best models the relationship between yea
Quadratic and exponential word problems
1. s(s1)=2
What are the solutions to the equation above?
A. s=2 and s=1
B. s=0 and s=1
C. s=0 and s=1
D. s=2 and s=1
Correct answer: A
level: 1
2. x210x+21=0
Let x=h and x=m be solutions to the equation above, with
TABLE DATE
1. A donut company makes cream-filled donuts using 1/4 cup (c) of dough and
1/2 tablespoon (tbsp) of cream per donut. The company decides to change their recipe
to use 3 times the amount of cream for their "New Triple-Stuffed Donuts!" If the
do
Graphing linear equations
1. The average price of a certain type of coffee worldwide was $0.51 per pound in
2008. The price per pound increased about $0.18 each year until 2014, and is
expected to do so for the next two years. Which of the following graph
Interpreting nonlinear expressions
1. Ben Frank is an electrician who installs lighting fixtures. He charges (in dollars) his
clients15h+40f where h is the number of hours worked and f is the number of
fixtures installed.
How much does Ben Frank charge wh
1. A college writing seminar increased its size by 50% from the first to the second
day. If the total number of students in the seminar on the second day was 15, how
many students were in the class on the first day?
A8
B. 10
C. 23
D. 30
Correct answer: B
Systems of linear equations word problems
1. The owner of a landscaping company is developing a proposal to maintain the grounds of a
building. It is estimated that 75 gardening hours and 25 foreman hours will be required. The
total budget for these hours
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
October 28, Wednesday
Competitive Equilibrium
Overview
This lecture brings us to the third substantive part of the class, the
study of competitive equilibrium. We have looked at
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
October 14, Wednesday
Foundations of Utility
Overview
This lecture take a step back to ask about the foundations of what
we are doing. The concept of a utility function appears
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
October 21, Wednesday
Competitive Firms and Prot Maximization
Overview
This lecture brings us to the third part (and the second substantive
part) of this course, the study of rm
Economics 501:
Microeconomic Theory
Heng Liu
University of Michigan
Fall 2015
September 28, Monday
Time
Overview
This lecture continues our applications of the basic choice model.
We will incorporate time into the model.
The basic model gives us no way of
APPLIED MICROECONOMICS
ROSS SCHOOL OF BUSINESS
UNIVERSITY OF MICHIGAN
ANSWERS TO PRACTICE PROBLEMS
MODULE: THE DEMAND SIDE
1. In this question, make sure you understand each of the following: 1) how to derive and analyze
demand curves; 2) how to graph non
WMBA 502
SPRING/SUMMER 2014
UNIVERSITY OF MICHIGAN
ROSS SCHOOL OF BUSINESS
GROUP ASSIGNMENT #1
(DUE 11:59PM, AUGUST 2)
1. A Taxing Problem (10 points)
Your team has been hired to advise on a sales tax proposal in the island nation of
Erehwon (which uses U
Name:_
Student ID_
Ross School of Business
WMBA 502: Quiz
Instructions:
1) You will have 60 minutes to complete the quiz. There are two questions
but the first question has 5 parts to it. Check to make sure you have all
pages.
2) You may use your notes an
Name:_
Student ID_
Ross School of Business
WMBA 502: Quiz
Instructions:
1) You will have 30 minutes to complete the quiz. Check to make sure you have all
pages.
2) This is a closed book exam.
3) When you have finished your exam
a) Read and sign the Honor
Name:_
Student ID_
Ross School of Business
WMBA 502: Quiz
Instructions:
1) You will have 30 minutes to complete the quiz. Check to make sure you have all
pages.
2) This is a closed book exam.
3) When you have finished your exam
a) Read and sign the Honor