Economics 401
Assignment 2
Must be handed in, in class, Thursday 21st May 2015.
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Let A be an n by n matrix, possibly not symmetric. Let
Economics 401 Final Examination
Winter 2015
Instructions: NO electronic aids of any type are permitted. Answer seven (7)
of the following nine (9) questions. All questions are of equal weight. Indicate
clearly on the rst page which questions you want mark
Economics 401 Final Examination
8 August 2014
Instructions: NO electronic aids of any type are permitted. Answer seven (7)
of the following nine (9) questions. All questions are of equal weight. Indicate
clearly on the rst page of your booklet which quest
Economics 401
Assignment 5
Must be handed in, in class, Thursday July 16th 2015
These questions are of equal weight.
1. In The Role of Commodity Taxation in Pareto Ecient Tax Structures for Redistribution consider the utility function
1/2 1/2
1/2
u (x1 ,
Economics 401
Assignment 2
Must be handed in, in class, Wednesday 20th January 2016.
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Let A be an n by n matrix, possibly not symmetric
Economics 401
Assignment 4
Must be handed in, in class, Thursday July 9th 2015
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Reconsider the imperfect information car insurance mode
Economics 401
Assignment 3
Must be handed in, in class, Thursday June 11th 2015
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Consider the three-good demand system
x1 = a + bp1 /p3
Economics 401
Assignment 1
Must be handed in, in class, Thursday 14 May 2015.
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. What does it mean to say that a utility function, u(), r
l. l[Jonsider the mode] of adverse selection from class. That is, consider an economy 1.vith
two goods: one of high and one of low quality. A large number of consumers have identical
preferences: each consUmer needs a single Unit of either good and if the
Economics 401
Test 2
Thursday 3rd July 2014
Name:
Student Number:
Please turn o all electronic devices computers, cell phones, calculators.
1
Answer all questions. Each is worth 10 marks.
1. Consider N price-taking consumers in a three-good world; assume
University of Waterloo
Department of Economics
Economics 401
Microeconomic Theory 3
Tuesday, Thursday 11:30-12:50, AL 124
Course Outline Winter 2015
Instructor Information
Instructor: John Burbidge
Office: HH-125
Office Hours: TTh 1:00-2:30, or by appoint
University of Waterloo
Economics 401
Assignment #1
Due: Friday September 30, 2016
1. Derive the reduced simple lotteries that correspond to the following compound
lotteries.
(a) I will flip a coin that comes up heads with probability p. If it comes up
hea
Economics 401
Assignment 3
Must be handed in, in class, Wednesday June 15th 2016
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Consider the three-good demand system
x1 = a + bp1 /p
Economics 401
1. Consider the following payo matrix which is a much-simplied version of the game
of baseball.
Pitcher
Pitch high
Pitch low
Batter
Swing low Swing high
(1, 0)
(0, 1)
(1/2, 1/2)
(1, 0)
(a) Assume the batter has to commit to his swing before
Economics 401
Test 1
Thursday 29th January 2015
Please turn o all electronic devices computers, cell phones, calculators.
Answer all questions. Each question is worth 10 marks.
1. (a) Let X be a choice set and let be the at least as good as preference rel
Economics 401
Test 2
Thursday 5th March 2015
Please turn o all electronic devices computers, cell phones, calculators.
1
Answer all questions. Each question is worth 10 marks.
1. Consider the three-good demand system
x1 = a1 + a2 p1 /p3 + a3 p2 /p3 + a4 p
Economics 401
Assignment 4
Must be handed in, in class, Monday March 21st 2016
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. There are three models in The role of commodity taxatio
Economics 401
Assignment 3
Must be handed in, in class, Wednesday February 24th 2016
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely.
1. Consider the three-good demand system
x1 = a + bp
(ii) X = cfw_a, b, c, B = cfw_B1 , B2 , B1 = cfw_a, b , B2 = cfw_a, b, c , C (B1 ) = cfw_a , C (B2 ) = cfw_c;
(iii) X = cfw_a, b, c, d, B = cfw_B1 , B2 , B1 = cfw_a, b, c , B2 = cfw_a, b, d , C (B1 ) = cfw_a, b , C (B2 ) =
cfw_a.
ANSWER
WARP holds in so
Economics 401
Taxes and labour supply
Assume a person can choose her hours of work. How inefficient is a proportional tax rate,
t, on earnings?
Suppose W is the wage rate, P is the price of consumption, L is the time endowment, l
is time spent at leisure,
Economics 401
Integrability
If a system of demand equations satisfies the properties that follow from the preference
based approach, can one find a utility function that rationalizes the demand system? MWG
argue that under quite general conditions, the an
Economics 401
The Choice-Based Approach
Consider a three-good example of Proposition 2.F.1 in MWG (p. 30) and the discussion
that follows it. Let x1 (a 3 by 1 column vector) denote quantities demanded at prices p1
(which is also a 3 by 1 vector). Now let
Economics 401
EV and CV
Consider a two-good world in which the consumer is endowed with wealth w and prices
change from (p11 , p12 ) to (p21 , p22 ). As a consequence of the price change, the consumers utility
changes from U 1 u (x1 (p11 , p12 , w) , x2 (
Economics 401
Test 2
Wednesday 2nd March 2016
Answer all questions. Each is worth 10 marks.
1. Consider N price-taking consumers in a three-good world; assume all consumers have
the same preferences but their incomes may differ. What does it mean to say t
Economics 401
Test 1
Wednesday 27th January 2016
Please turn off all electronic devices computers, cell phones, calculators.
Answer all questions. Each question is worth 10 marks.
1. (a) What are the two main approaches to consumer behaviour in economics?
Economics 401
Assignment 5
Must be handed in, in class, Wednesday July 20th 2016
These questions are of equal weight.
1. Consider the following payoff matrix. Let (a, c, e, g) be distinct numbers and let
(b, d, f, h) be distinct numbers.
Player B
Strategy
Economics 401
Assignment 4
Must be handed in, in class, Monday July 11th 2016
Please print this assignment and then answer all questions in the space provided. Please write clearly and concisely. Each question is worth 10 marks.
1. There are three models
Assignment 4
ECON 401 Microeconomic Theory 3
Jean Guillaume Forand
Fall 2013, Waterloo
1. Consider the Game of Chicken from class. Two redneck lunatics, 1 and 2, careen towards one
another in their cars. Each player can either go straight, risking a crash
Assignment 2
ECON 401 Microeconomic Theory 3
Jean Guillaume Forand
Fall 2013, Waterloo
1. Let the nal outcomes be C = (c1 , c2 , c3 ) and suppose that a decision-maker has preferences
over lotteries over C that are represented by a utility function U . Co
Assignment 3
ECON 401 Microeconomic Theory 3
Jean Guillaume Forand
Fall 2013, Waterloo
1. Consider the model of adverse selection from class. That is, consider an economy with
two goods, one of high and one of low quality. A large number of consumers have