University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
2nd Midterm Exam - Sample 1 - Answers
Total Marks: /25
Question 1
Note whether the statements below are true, false, or ambiguous. For each case, clearly explain your
answer
Assignment 1
ECON 301 Microeconomic Theory 2
Jean Guillaume Forand
Winter 2016, Waterloo
1. Smartphone plans have monthly allotments of both data and talking minutes, and consumers are not typically free to choose any number of megabytes or minutes, but m
Solutions: Assignment 1
ECON 301 Microeconomic Theory 2
Jean Guillaume Forand
Winter 2016, Waterloo
A NOTE ON MY SOLUTIONS: I give you exhaustive answers to the questions, and I will
often provide both an algebraic answer and a graphical answer. In any ev
ECON 301 - Microeconomic Theory 2
Lecture 11
General Equilibrium of Production Economy (contd)
These notes are based on chapter 32 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
! Robinson Crusoes Economy
! Robinson Cruso
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
1st Midterm Exam - Answer Key
Total Marks: 25
Question 1 (10 marks)
Note whether the statements below are true, false, or ambiguous. For each case, clearly explain your
answ
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
1st Midterm Exam - Sample
Duration of the exam: 1 hour 15 minutes
Instructor: Alain-Dsir Nimubona
Total Marks: /25
Question 1
Note whether the statements below are true, fal
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
2nd Midterm Exam - Winter 2015
March 10, 2015 - 11:30 a.m.
Duration of the exam: 1 hour 15 minutes
Instructor: Alain-Dsir Nimubona
Total Marks: 25
ANSWER KEY
Question 1 (9 m
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problem Set 1 (Chapters 4, 5, 8, 19, 20, and 31)
Information
These problems do not cover all the course material. They are just a means to help you get prepared
for the rst
ECON 301 - Microeconomic Theory 2
Lectures 13 and 14
Welfare Economics
These notes are based on chapter 33 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Social Choice
There will usually be many economic states that are Pareto
e cient
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
1st Midterm Exam - Sample
Duration of the exam: 1 hour 15 minutes
Instructor: Alain-Dsir Nimubona
Total Marks: /25
Question 1
Note whether the statements below are true, fal
ECON 301 - Microeconomic Theory 2
Mathematics Review
These notes are based on the Mathematical Appendix in "Intermediate Microeconomics"
by Varian (2010).
1
Functions
A function is a rule for describing the relationship between
numbers. In our context, we
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problems Set 2 (Chapters 32, 33, 34, and 36)
Information
These problems do not cover all the course material. They are just a means to help you get prepared
for the rst mid
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problem Set 1 (Chapters 4, 5, 8, 19, 20, and 31) - Answers
A. Problems
1.
Lucas spends all of his food budget on pizza and milk. Lucasutility function is
U (q1 ; q2 ) = q1
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problems Set 3 (Chapters 10, 26, and 36)
Information
These problems do not cover all the course material. They are just a means to help you get prepared
for the nal exam.
T
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problems Set 3 (Chapters 10, 26, and 36)
A. Problems
1. Alpha has a Cobb-Douglas utility function U (c1 ; c2 ) = ca c1 a , where 0 < a < 1 and where c1 and c2
1 2
are her c
ECON 301 - Microeconomic Theory 2
Lectures 5, 6, and 7
General Equilibrium of Exchange Economy
These notes are based on chapter 31 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
Short-Run Prot-Maximization.
Prot Maximizat
University of Waterloo
Department of Economics
ECON 301 - Microeconomics Theory II
Problems Set 2 (Chapters 32, 33, 34, and 36) - Solutions
A. Problems
1. Robinson Crusoe has decided that he will spend exactly 8 hours a day gathering food. He can either
s
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
2nd Midterm Exam - Sample 1
Duration of the exam: 1 hour 15 minutes
Instructor: Alain-Dsir Nimubona
Total Marks: /25
Question 1
Note whether the statements below are true, f
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
2nd Midterm Exam - Sample 2
Duration of the exam: 1 hour 15 minutes
Instructor: Alain-Dsir Nimubona
Total Marks: /25
Question 1
Note whether the statements below are true, f
ECON 301 - Microeconomic Theory 2
Lecture 20
Pricing and Employment of Inputs
These notes are based on chapter 26 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
E cient Amount of A public Good
Comparison to Private Goods
ECON 301 - Microeconomic Theory 2
Lectures 21, 22, and 23
Intertemporal Choice
These notes are based on chapter 10 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
A Competitive Firm Input Demands
s
A Monopolist Demands for
ECON 301 - Microeconomic Theory 2
Lecture 15
Externalities
These notes are based on chapter 34 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
! Welfare Maximization
! Social Optima & Eciency
! Fair Allocations.
2
External
ECON 301 - Microeconomic Theory 2
Lecture 12
General Equilibrium of Production Economy: A
Numerical Example
Consider a production economy with the following utility and
production functions for both the consumers and producers,
U A = x1=2y 1=2 and U B = x
ECON 301 - Microeconomic Theory 2
Lectures 13 and 14
Welfare Economics
These notes are based on chapter 33 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Social Choice
! There will usually be many economic states that are Pareto
ecien
ECON 301 - Microeconomic Theory 2
Lectures 5, 6, and 7
General Equilibrium of Exchange Economy
These notes are based on chapter 31 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Last Lecture
Short-Run Prot-Maximization.
Prot Maximizat
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory II
2nd Midterm Exam - Sample 2 - Answers
Total Marks: /25
Question 1
Note whether the statements below are true, false, or ambiguous. For each case, clearly explain your
answer
University of Waterloo
Department of Economics
ECON 301 - Microeconomic Theory 2
Lecture 1
Course Organization and Introduction
Introducing myself
Instructor: Alain-Dsir Nimubona
O ce: HH 212
Phone: 519-888-4567, ext 33949
E-mail: [email protected]
O
ECON 301 - Microeconomic Theory 2
Lecture 2
Utility Maximization
These notes are based on chapters 4 and 5 of the book "Intermediate Microeconomics"
by Varian (2010).
1
1
Mathematical Review
Functions and graphs
Equations and identities
Changes and rates
ECON 301 - Microeconomic Theory 2
Lecture 4
Prot Maximization
These notes are based on chapters 19 and 20 of the textbook "Intermediate Microeconomics" by Varian (2010).
1
1
Last Lecture
Consumer Demand Functions
Slutsky Equation.
2
Short-Run Prot-Maximiz
ECON 301 - Microeconomic Theory 2
Lecture 10
General Equilibrium of Production Economy
These notes are based on chapter 32 of the textbook "Intermediate Microeconomics" by
Varian (2010).
1
1
Exchange Economies (revisited)
General equilibrium: all markets