Name: _ Date: _
Use the following to answer questions 1-2:
Figure: The Production Possibilities for Two Countries
1. (Figure: The Production Possibilities for Two Countries) Look at the figure The
Production Possibilities for Two Countries. The opportunit
December 8, 2010
More Planning Economics Review Problems
Note: There are several review sheets floating around and some of these problems may have
appeared on them. A set of problems on urban location/agglomeratio
December 15, 2009
2009 Micro/Planning Final Exam
Instructions (READ CAREFULLY):
Students who are taking both Planning Economics and Microeconomics should
answer Questions 1-8. You have three hours to com
December 6, 2010
Practice Problems for the Economic Structure of Cities
(These are homework problems from earlier years.)
1) In the pumpkin model discussed in class and section (December 7), there was only one use
Animal metabolism and other universal laws
How much energy E does one need to make an animal of size M
The naive guess would be CRS:
If the size of the animal doubles, one needs twice the amount of energy.
But Nature does better than tha
Heuristics and the rules of thumb
Judgment heuristic: an informal algorithm which generates an approximate answer to a problem.
Rules of thumb are basically special cases of heuristics.
Heuristics speed up cognition.
Heuristics occasionally produce
Second order risk aversion for EU
The agent takes the 50/50 gamble + , i:
B () = u (x + + ) + u (x + ) u (x)
B () = u (x)
Assume that u is twice dierentiable and take a look at the Taylor
expansion of the above equality for small .
Quiz For Lecture # 6
You are a sales person at Putnam. Your client is currently invested in an active managed
product. Your client wants to move his assets to Vanguard. Your client ponders whether
to switch 70% that is invested in Putnams Top-fund into Va
Quiz On The Day Before Lecture # 9
Single-Index and Multifactor Models
Consider the following two regression lines for stocks A and B in the following figure.
rA - rf
rB - rf
rM - rf
rM - rf
Figure 1: Regressions of Stock A and B vs. Market
which stock ha