How to calculate the determinant of a Hessian
abc
Given a matrix H= d e f
ghi
The determinant of that hessian would be = a*(e*i-f*h)-b*(d*i-f*g) + c*(d*h-e*g)
Where * means multiplication
0
Practice Questions ECON 301
Externalities, Information Asymmetries & Public Goods
Winter 2008
Question 1
2
An orchard is located next to a honey farm. PH =5 and PA =10 while CH = H
25
2
and CA = A 0.8
Practice Questions ECON 301
Exchange & Production
Winter 2008
Question 1
(a) 2 individuals, A & B, are on the same market. They
consume good X and
good Y. They both have the same utility function U= X
Economics 301: Microeconomic Theory 2
Test 1
February 3rd , 2009
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Answer the questions on this paper. All explanations should be brief and
pre
Economics 301: Microeconomic Theory 2
Test 1
October 7th , 2010
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Answer the questions on this paper. All explanations should be brief and
prec
Economics 301: Microeconomic Theory 2
Test 1
November 3rd , 2011
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Answer the questions on this paper. All explanations should be brief and
pre
Economics 301: Microeconomic Theory 2
Test 1
October 6th , 2011
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Answer the questions on this paper. All explanations should be brief and
prec
Economics 301: Microeconomic Theory 2
Test 2
November 4th , 2010
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Answer the questions on this paper. All explanations should be brief and
pre
Economics 301: Microeconomic Theory II
Test 2
March 10th , 2009
Instructor: Emmanuelle Pirard
e
*
Name:
*
Instructions:
1. Carefully label your graphs and show all intercepts, slopes (when constant) a
Question 3 (12 marks).
Show that each of the following Home triples is satisﬁed under partial correctneﬁs.
Show all the needed details of your program annotation‘ and explicitly prove any implications
You may use the space below to continue any other question that you have run out
of space answering. In this case, be sure to indicate clearly, in the original location
that the work continues here.
Econ 301 Spring 2016
Assignment 2
The assignment is due in class on Monday, June 6th. Answer each of the following questions.
You must provide justification to receive marks. Students may collaborate
Practice Questions ECON 301
Constrained Optimization
Winter 2008
Question 1
(a) Obelix consumes boars and Romans such that U(B,R)=B 2 R2 . He
has up to $1000 to spend on both goods and PB =5 while PR
Game Theory
a
Game theory models strategic behavior by agents who understand
that their actions aect the actions of other agents.
One can use it to study oligopolies, cartels, externalities, military
Asymmetric Information
a
In purely competitive markets all agents are fully informed about
traded commodities and other aspects of the market. This is not
always the case: health care market, used car
Constrained Optimization (part II)a
When maximizing prots, or minimizing costs, following some
constraint(s), one nds a value for the multiplier (). What this
value represents is the rst derivative of
Constrained Optimization I: First Order Conditionsa
Constrained optimization is central to economic theory: we
maximize utility, subject to a budget constraint; we minimize costs
subject to a producti
Cost Minimization
a
A rm uses inputs j = 1,.,m to make products i = 1,.,n.
Output levels are y1 , ., yn .
Input levels are x1 , ., xm .
Product prices are p1 , ., pn .
Input prices are w1 , ., wm .
A
Labour Demand
Factors of production: labour inputs into the production of nal
goods
Linked to the rms demand for goods/services
Derived demand (demand for factors): The rm decides how much
to produce
Slutsky Equation
Eects of a Price Change
When a commoditys price decreases we observe a Substitution
eect: the commodity is relatively cheaper, so consumers
substitute it for now relatively more expen
Specic types of Utility Functions
a
When goods are perfect substitutes, the utility function takes the
form of U (X1 , X2 ) = X1 + X2 .
When goods are perfect complements, the utility function takes t
Intertemporal Choice
a
Individuals usually receive income in lump sums (salary is received
monthly or by-weekly). This chapter explores how individuals
decide to spread their consumption over time.
Pr
Factor Markets
a
A Competitive Firms Input Demands
A purely competitive rm is a price-taker in its output and input
markets. It buys additional units of input i until the extra cost of
an extra unit e
Exchange
a
Two consumers, A and B, have respective endowments of goods 1
A
A
B
B
and 2 are A =(1 , 2 ) & B =(1 , 2 )
A
B
T
Therefore, the total quantities available are 1 +1 =1
A
B
T
2 +2 =2
We will u
Production
a
Assume Robinson Crusoe (RC). He is endowed with 24 hours
during which he can either work (produce) or spend time as leisure.
Assume labour time is L and leisure is 24-L.
Technology: Labou
Welfare
a
Dierent economic states will be preferred by dierent individuals.
The problem comes when aggregating those preferences. Majority
votes and rank order voting may not always aggregate transiti
Externalities
a
An externality is a cost (negative) or a benet (positive) imposed
upon someone by actions taken by others. The cost or benet is
thus generated externally to that somebody.
An externali
Public Goods
a
Denition: A good is purely public if it is both nonexcludable (all
consumers can consume the good) and nonrival (each consumer can
consume all of the good.) in consumption.
A consumers