ECON 255 Introduction to Mathematical Economics
|
|
- MargaretMargaret Walsh
- 5 years ago
- Views:
Transcription
1 Page 1 of 5 FINAL EXAMINATION Winter 2017 Introduction to Mathematical Economics April 20, 2017 TIME ALLOWED: 3 HOURS NUMBER IN THE LIST: STUDENT NUMBER: NAME: SIGNATURE: INSTRUCTIONS 1. This examination paper contains TWO sections (Section A and Section B). Both sections have five questions. 2. Answer FOUR questions from section A. Answer FOUR questions from section B. Only EIGHT questions will be graded (FOUR for each section). The marks for each question are indicated at the beginning of each question. You must indicate the questions to be graded in the chart below. If you answer more questions per section we will grade only the first four. 3. Read the questions carefully and make sure you fully understand them before giving your answers. Always show your work or explain how you got your answer. 4. This IS NOT an OPEN BOOK exam. 5. Students are allowed to use a Casio 991 CALCULATOR. Table 1: Cross with an X the questions to be graded (FOUR in each Section) Section A Q1 Q2 Q3 Q4 Q5 Section B Q6 Q7 Q8 Q9 Q10 1
2 Section A Question 1. (I) (15 marks) Let A, B, and U be sets. Assume A, B U (U denotes the universal set), A = 25, B = 10, and U = 100. ( denotes the cardinality of the set). (a) What is A c? What is B c? (b) What is A B? (c) What is the smallest A B can be? (d) What is the largest A B can be? (e) Suppose you also know that A B = 5. What must A B be? (II) (5 marks) For any events (sets) A, B defined on the sample space U (Universal set). Show that (A B) c = A c B c Question (15) Let A and B be square matrices of order 4 such that det(a) = 5 and det(b) = 3 (det denotes the determinant). Find (a) det(3b). (b) det((ab) ). (c) det(a 1 ). 2. (5 marks) If A 1, A 2, A 3,..., A n are invertible matrices of size n, prove that Hint. You should use induction. (A 1 A 2 A 3 A n ) 1 = A 1 n A 1 3 A 1 2 A 1 1. Question 3. Consider the matrix A = [ 1 k ]. 1. (5 marks) If A is the augmented matrix of a system of linear equations, determine the number of equations and the number of variables. 2
3 2. (5 marks) If A is the augmented matrix of a system of linear equations, find the value(s) of k such that the system is consistent. 3. (5 marks) If A is the coefficient matrix of a homogeneous system of linear equations, determine the number of equations and the number of variables. 4. (5 marks) If A is the coefficient matrix of a homogeneous system of linear equations, find the value(s) of k such that the system is consistent. Question 4. Using the definitions of concavity and convexity check whether z = x 2 y 2 is concave, convex, strictly concave, strictly convex, or neither. Question (15 marks) Consider the squared loss function L(α, β) = n (y i α βx i ) 2. i=1 (a) Compute the First Order Conditions and Second Order conditions. (b) Write the FOCs as a system of equations in the form Ax = b where A is a matrix of coefficients, x is a vector of endogenous variables (α, β), b is the solution vector. Find the critical points (ˆα, ˆβ). (c) Using the SOCs, find conditions such that the Hessian matrix is positive definite provided that n > (5 marks) The least squares estimator of β, b is defined as: b = (X X) 1 X y Let ŷ be defined as: ŷ = Xb. Show that X (y ŷ) = 0. 3
4 Section B Question 6. A firm pays tax on gross revenue R(Q) at a rate which depends on output volume t(q). Suppose that and that Then the total tax paid is R(Q) = k ln(q + 1) cq α, k > 0, c > 0, α > 1, t(q) = 1 e bq, b > 0. T (Q) = R(Q)t(Q) = [k ln(q + 1) cq α ] ( 1 e bq) a) (7 marks) Is R(Q) concave? Justify. b) (8 marks) Use the product rule to find T (Q). c) (5 marks) Suppose that Q maximizes R(Q). Show that T (Q ) > 0 Question 7. Consider the following utility function over goods x and y, u(x, y) = α ln x + (1 α) ln y, 0 < α < 1. The price of x is p x > 0 and the price of y is p y > 0. The consumer has a total income of m > (4 marks) Write down the consumer constrained utility maximization problem and his Lagrangian function. 2. (4 marks) Derive the first order conditions and find a candidate solution (x, y ). 3. (4 marks) Using the bordered Hessian, check whether the point (x, y ) satisfies the second-order conditions for a local maximum of this optimization problem. 4. (4 marks) Determine the value of λ (Lagrange multiplier) associated with this problem. Interpret λ. 5. (4 marks) Find v(p x, p y, m) defined by v(p x, p y, m) u(x, y ) Show that v(p x, p y, m) is homogeneous of degree zero in prices and income. 4
5 Question 8. Consider a profit maximizing monopoly. The demand for the monopoly s product is given by Q = ln(a bp ) and its cost function is C(Q) = ce Q, where the parameters a, b, c are all positive. Let Q be the monopoly s optimal (profit-maximizing) output. Derive an expression for Q / a and determine its sign. Question 9. Consider a firm that has a Cobb-Douglas technology. The firm wishes to minimize the cost of producing y units of output and has access to perfectly competitive factor markets. The firm s cost minimization problem is given by min k,l subject to: wl + rk k α l β = y. Let µ denote the Lagrange multiplier on the output constraint. 1. (4 marks) Write down the Lagrangian function. 2. (4 marks) Derive the first order conditions and find the candidate solution l (w, r, y) and k (w, r, y). 3. (4 marks) Using the bordered Hessian, check whether the point (l (w, r, y), k (w, r, y)) satisfies the second order conditions for a local minimum of this optimization problem. 4. (4 marks) Find the cost function defined such as C (w, r, y) wl (w, r, y) + rk (w, r, y) 5. (4 marks) Find µ. What is its interpretation? Question 10. Consider the following National-Income Model Y = C + I 0 + G 0 C = α + β(y T ) (α > 0, 0 < β < 1) T = γ + δy (γ > 0, 0 < δ < 1) where the endogenous variables are Y (national income), C (consumption), and T (taxes). The exogenous variables are I 0 (investment), G 0 (government expenditure) are nonnegative. The exogenous variables are nonegative. Find Y/ G 0 and T/ G 0. (Hint: You should consider the system of equations as a system of implicit functions). END OF PAPER 5
DEPARTMENT OF MANAGEMENT AND ECONOMICS Royal Military College of Canada. ECE Modelling in Economics Instructor: Lenin Arango-Castillo
Page 1 of 5 DEPARTMENT OF MANAGEMENT AND ECONOMICS Royal Military College of Canada ECE 256 - Modelling in Economics Instructor: Lenin Arango-Castillo Final Examination 13:00-16:00, December 11, 2017 INSTRUCTIONS
More informationPh.D. Preliminary Examination MICROECONOMIC THEORY Applied Economics Graduate Program May 2012
Ph.D. Preliminary Examination MICROECONOMIC THEORY Applied Economics Graduate Program May 2012 The time limit for this exam is 4 hours. It has four sections. Each section includes two questions. You are
More informationLecture Notes for Chapter 12
Lecture Notes for Chapter 12 Kevin Wainwright April 26, 2014 1 Constrained Optimization Consider the following Utility Max problem: Max x 1, x 2 U = U(x 1, x 2 ) (1) Subject to: Re-write Eq. 2 B = P 1
More informationTutorial 3: Optimisation
Tutorial : Optimisation ECO411F 011 1. Find and classify the extrema of the cubic cost function C = C (Q) = Q 5Q +.. Find and classify the extreme values of the following functions (a) y = x 1 + x x 1x
More informationLakehead University ECON 4117/5111 Mathematical Economics Fall 2002
Test 1 September 20, 2002 1. Determine whether each of the following is a statement or not (answer yes or no): (a) Some sentences can be labelled true and false. (b) All students should study mathematics.
More informationECON 4117/5111 Mathematical Economics Fall 2005
Test 1 September 30, 2005 Read Me: Please write your answers on the answer book provided. Use the rightside pages for formal answers and the left-side pages for your rough work. Do not forget to put your
More informationMathematical Foundations -1- Constrained Optimization. Constrained Optimization. An intuitive approach 2. First Order Conditions (FOC) 7
Mathematical Foundations -- Constrained Optimization Constrained Optimization An intuitive approach First Order Conditions (FOC) 7 Constraint qualifications 9 Formal statement of the FOC for a maximum
More informationAdvanced Microeconomic Analysis, Lecture 6
Advanced Microeconomic Analysis, Lecture 6 Prof. Ronaldo CARPIO April 10, 017 Administrative Stuff Homework # is due at the end of class. I will post the solutions on the website later today. The midterm
More informationMicroeconomic Theory -1- Introduction
Microeconomic Theory -- Introduction. Introduction. Profit maximizing firm with monopoly power 6 3. General results on maximizing with two variables 8 4. Model of a private ownership economy 5. Consumer
More informationEC487 Advanced Microeconomics, Part I: Lecture 2
EC487 Advanced Microeconomics, Part I: Lecture 2 Leonardo Felli 32L.LG.04 6 October, 2017 Properties of the Profit Function Recall the following property of the profit function π(p, w) = max x p f (x)
More informationE 600 Chapter 4: Optimization
E 600 Chapter 4: Optimization Simona Helmsmueller August 8, 2018 Goals of this lecture: Every theorem in these slides is important! You should understand, remember and be able to apply each and every one
More informationLakehead University ECON 4117/5111 Mathematical Economics Fall 2003
Test 1 September 26, 2003 1. Construct a truth table to prove each of the following tautologies (p, q, r are statements and c is a contradiction): (a) [p (q r)] [(p q) r] (b) (p q) [(p q) c] 2. Answer
More informationproblem. max Both k (0) and h (0) are given at time 0. (a) Write down the Hamilton-Jacobi-Bellman (HJB) Equation in the dynamic programming
1. Endogenous Growth with Human Capital Consider the following endogenous growth model with both physical capital (k (t)) and human capital (h (t)) in continuous time. The representative household solves
More informationEconomics th April 2011
Economics 401 8th April 2011 Instructions: Answer 7 of the following 9 questions. All questions are of equal weight. Indicate clearly on the first page which questions you want marked. 1. Answer both parts.
More informationBeyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems
Beyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems Kiminori Matsuyama 1 Philip Ushchev 2 October 2017 1 Department of Economics, Northwestern University, Evanston, USA. Email:
More informationMathematical Economics: Lecture 16
Mathematical Economics: Lecture 16 Yu Ren WISE, Xiamen University November 26, 2012 Outline 1 Chapter 21: Concave and Quasiconcave Functions New Section Chapter 21: Concave and Quasiconcave Functions Concave
More informationBeyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems
Beyond CES: Three Alternative Classes of Flexible Homothetic Demand Systems Kiminori Matsuyama 1 Philip Ushchev 2 December 19, 2017, Keio University December 20. 2017, University of Tokyo 1 Department
More informationHomework 1 Solutions
Homework Solutions Econ 50 - Stanford University - Winter Quarter 204/5 January 6, 205 Exercise : Constrained Optimization with One Variable (a) For each function, write the optimal value(s) of x on the
More informationEconS 501 Final Exam - December 10th, 2018
EconS 501 Final Exam - December 10th, 018 Show all your work clearly and make sure you justify all your answers. NAME 1. Consider the market for smart pencil in which only one firm (Superapiz) enjoys a
More informationDepartment of Agricultural Economics. PhD Qualifier Examination. May 2009
Department of Agricultural Economics PhD Qualifier Examination May 009 Instructions: The exam consists of six questions. You must answer all questions. If you need an assumption to complete a question,
More informationECON 186 Class Notes: Optimization Part 2
ECON 186 Class Notes: Optimization Part 2 Jijian Fan Jijian Fan ECON 186 1 / 26 Hessians The Hessian matrix is a matrix of all partial derivatives of a function. Given the function f (x 1,x 2,...,x n ),
More information= 2 = 1.5. Figure 4.1: WARP violated
Chapter 4 The Consumer Exercise 4.1 You observe a consumer in two situations: with an income of $100 he buys 5 units of good 1 at a price of $10 per unit and 10 units of good 2 at a price of $5 per unit.
More informationPractice Questions for Mid-Term I. Question 1: Consider the Cobb-Douglas production function in intensive form:
Practice Questions for Mid-Term I Question 1: Consider the Cobb-Douglas production function in intensive form: y f(k) = k α ; α (0, 1) (1) where y and k are output per worker and capital per worker respectively.
More informationMathematical Foundations II
Mathematical Foundations 2-1- Mathematical Foundations II A. Level and superlevel sets 2 B. Convex sets and concave functions 4 C. Parameter changes: Envelope Theorem I 17 D. Envelope Theorem II 41 48
More informationBi-Variate Functions - ACTIVITES
Bi-Variate Functions - ACTIVITES LO1. Students to consolidate basic meaning of bi-variate functions LO2. Students to learn how to confidently use bi-variate functions in economics Students are given the
More informationEC /11. Math for Microeconomics September Course, Part II Problem Set 1 with Solutions. a11 a 12. x 2
LONDON SCHOOL OF ECONOMICS Professor Leonardo Felli Department of Economics S.478; x7525 EC400 2010/11 Math for Microeconomics September Course, Part II Problem Set 1 with Solutions 1. Show that the general
More informationBEEM103 UNIVERSITY OF EXETER. BUSINESS School. January 2009 Mock Exam, Part A. OPTIMIZATION TECHNIQUES FOR ECONOMISTS solutions
BEEM03 UNIVERSITY OF EXETER BUSINESS School January 009 Mock Exam, Part A OPTIMIZATION TECHNIQUES FOR ECONOMISTS solutions Duration : TWO HOURS The paper has 3 parts. Your marks on the rst part will be
More informationMaximum Value Functions and the Envelope Theorem
Lecture Notes for ECON 40 Kevin Wainwright Maximum Value Functions and the Envelope Theorem A maximum (or minimum) value function is an objective function where the choice variables have been assigned
More informationTutorial 1: Linear Algebra
Tutorial : Linear Algebra ECOF. Suppose p + x q, y r If x y, find p, q, r.. Which of the following sets of vectors are linearly dependent? [ ] [ ] [ ] (a),, (b),, (c),, 9 (d) 9,,. Let Find A [ ], B [ ]
More informationEC /11. Math for Microeconomics September Course, Part II Lecture Notes. Course Outline
LONDON SCHOOL OF ECONOMICS Professor Leonardo Felli Department of Economics S.478; x7525 EC400 20010/11 Math for Microeconomics September Course, Part II Lecture Notes Course Outline Lecture 1: Tools for
More informationAY Term 1 Examination November 2013 ECON205 INTERMEDIATE MATHEMATICS FOR ECONOMICS
AY203-4 Term Examination November 203 ECON205 INTERMEDIATE MATHEMATICS FOR ECONOMICS INSTRUCTIONS TO CANDIDATES The time allowed for this examination paper is TWO hours 2 This examination paper contains
More informationYou are permitted to use your own calculator where it has been stamped as approved by the University.
ECONOMICS TRIPOS Part I Friday 13 June 2003 9 12 Paper 3 Quantitative Methods in Economics This exam comprises four sections. Sections A and B are on Mathematics; Sections C and D are on Statistics. You
More informationUniversity of Ottawa
University of Ottawa Department of Mathematics and Statistics MAT 30B: Mathematical Methods II Instructor: Alistair Savage Second Midterm Test Solutions White Version 3 March 0 Surname First Name Student
More informationFinal Exam - Math Camp August 27, 2014
Final Exam - Math Camp August 27, 2014 You will have three hours to complete this exam. Please write your solution to question one in blue book 1 and your solutions to the subsequent questions in blue
More informationTutorial Code and TA (circle one): T1 Charles Tsang T2 Stephen Tang
Department of Computer & Mathematical Sciences University of Toronto at Scarborough MATA33H3Y: Calculus for Management II Final Examination August, 213 Examiner: A. Chow Surname (print): Given Name(s)
More informationAdvanced Microeconomic Analysis Solutions to Midterm Exam
Advanced Microeconomic Analsis Solutions to Midterm Exam Q1. (0 pts) An individual consumes two goods x 1 x and his utilit function is: u(x 1 x ) = [min(x 1 + x x 1 + x )] (a) Draw some indifference curves
More informationHomework 3 Suggested Answers
Homework 3 Suggested Answers Answers from Simon and Blume are on the back of the book. Answers to questions from Dixit s book: 2.1. We are to solve the following budget problem, where α, β, p, q, I are
More informationMATHEMATICS FOR ECONOMISTS. Course Convener. Contact: Office-Hours: X and Y. Teaching Assistant ATIYEH YEGANLOO
INTRODUCTION TO QUANTITATIVE METHODS IN ECONOMICS MATHEMATICS FOR ECONOMISTS Course Convener DR. ALESSIA ISOPI Contact: alessia.isopi@manchester.ac.uk Office-Hours: X and Y Teaching Assistant ATIYEH YEGANLOO
More informationwhere u is the decision-maker s payoff function over her actions and S is the set of her feasible actions.
Seminars on Mathematics for Economics and Finance Topic 3: Optimization - interior optima 1 Session: 11-12 Aug 2015 (Thu/Fri) 10:00am 1:00pm I. Optimization: introduction Decision-makers (e.g. consumers,
More information1 Theory of the Firm: Topics and Exercises
1 Theory of the Firm: Topics and Exercises Firms maximize profits, i.e. the difference between revenues and costs, subject to technological and other, here not considered) constraints. 1.1 Technology Technology
More informationAdvanced Microeconomic Theory. Chapter 6: Partial and General Equilibrium
Advanced Microeconomic Theory Chapter 6: Partial and General Equilibrium Outline Partial Equilibrium Analysis General Equilibrium Analysis Comparative Statics Welfare Analysis Advanced Microeconomic Theory
More informationIndex. Cambridge University Press An Introduction to Mathematics for Economics Akihito Asano. Index.
, see Q.E.D. ln, see natural logarithmic function e, see Euler s e i, see imaginary number log 10, see common logarithm ceteris paribus, 4 quod erat demonstrandum, see Q.E.D. reductio ad absurdum, see
More informationIntroductory Microeconomics
Prof. Wolfram Elsner Faculty of Business Studies and Economics iino Institute of Institutional and Innovation Economics Introductory Microeconomics The Ideal Neoclassical Market and General Equilibrium
More informationMaximum Theorem, Implicit Function Theorem and Envelope Theorem
Maximum Theorem, Implicit Function Theorem and Envelope Theorem Ping Yu Department of Economics University of Hong Kong Ping Yu (HKU) MIFE 1 / 25 1 The Maximum Theorem 2 The Implicit Function Theorem 3
More informationProperties of Walrasian Demand
Properties of Walrasian Demand Econ 2100 Fall 2017 Lecture 5, September 12 Problem Set 2 is due in Kelly s mailbox by 5pm today Outline 1 Properties of Walrasian Demand 2 Indirect Utility Function 3 Envelope
More information4) Univariate and multivariate functions
30C00300 Mathematical Methods for Economists (6 cr) 4) Univariate and multivariate functions Simon & Blume chapters: 13, 15 Slides originally by: Timo Kuosmanen Slides amended by: Anna Lukkarinen Lecture
More informationEcon Review Set 2 - Answers
Econ 4808 Review Set 2 - Answers EQUILIBRIUM ANALYSIS 1. De ne the concept of equilibrium within the con nes of an economic model. Provide an example of an economic equilibrium. Economic models contain
More informationAnswers to Spring 2014 Microeconomics Prelim
Answers to Spring 204 Microeconomics Prelim. To model the problem of deciding whether or not to attend college, suppose an individual, Ann, consumes in each of two periods. She is endowed with income w
More informationMathematics for Economics ECON MA/MSSc in Economics-2017/2018. Dr. W. M. Semasinghe Senior Lecturer Department of Economics
Mathematics for Economics ECON 53035 MA/MSSc in Economics-2017/2018 Dr. W. M. Semasinghe Senior Lecturer Department of Economics MATHEMATICS AND STATISTICS LERNING OUTCOMES: By the end of this course unit
More informationEquilibrium in Factors Market: Properties
Equilibrium in Factors Market: Properties Ram Singh Microeconomic Theory Lecture 12 Ram Singh: (DSE) Factor Prices Lecture 12 1 / 17 Questions What is the relationship between output prices and the wage
More informationPractice Problems #1 Practice Problems #2
Practice Problems #1 Interpret the following equations where C is the cost, and Q is quantity produced by the firm a) C(Q) = 10 + Q Costs depend on quantity. If the firm produces nothing, costs are 10,
More informationECON2285: Mathematical Economics
ECON2285: Mathematical Economics Yulei Luo Economics, HKU September 17, 2018 Luo, Y. (Economics, HKU) ME September 17, 2018 1 / 46 Static Optimization and Extreme Values In this topic, we will study goal
More informationECONOMICS 001 Microeconomic Theory Summer Mid-semester Exam 2. There are two questions. Answer both. Marks are given in parentheses.
Microeconomic Theory Summer 206-7 Mid-semester Exam 2 There are two questions. Answer both. Marks are given in parentheses.. Consider the following 2 2 economy. The utility functions are: u (.) = x x 2
More informationName: Final Exam EconS 527 (December 12 th, 2016)
Name: Final Exam EconS 527 (December 12 th, 2016) Question #1 [20 Points]. Consider the car industry in which there are only two firms operating in the market, Trotro (T) and Fido (F). The marginal production
More informationEconomics 101A (Lecture 3) Stefano DellaVigna
Economics 101A (Lecture 3) Stefano DellaVigna January 24, 2017 Outline 1. Implicit Function Theorem 2. Envelope Theorem 3. Convexity and concavity 4. Constrained Maximization 1 Implicit function theorem
More informationCHAPTER 4: HIGHER ORDER DERIVATIVES. Likewise, we may define the higher order derivatives. f(x, y, z) = xy 2 + e zx. y = 2xy.
April 15, 2009 CHAPTER 4: HIGHER ORDER DERIVATIVES In this chapter D denotes an open subset of R n. 1. Introduction Definition 1.1. Given a function f : D R we define the second partial derivatives as
More informationNotes I Classical Demand Theory: Review of Important Concepts
Notes I Classical Demand Theory: Review of Important Concepts The notes for our course are based on: Mas-Colell, A., M.D. Whinston and J.R. Green (1995), Microeconomic Theory, New York and Oxford: Oxford
More informationMoral Hazard: Part 1. April 9, 2018
Moral Hazard: Part 1 April 9, 2018 Introduction In a standard moral hazard problem, the agent A is characterized by only one type. As with adverse selection, the principal P wants to engage in an economic
More informationReview of Optimization Methods
Review of Optimization Methods Prof. Manuela Pedio 20550 Quantitative Methods for Finance August 2018 Outline of the Course Lectures 1 and 2 (3 hours, in class): Linear and non-linear functions on Limits,
More informationMTAEA Implicit Functions
School of Economics, Australian National University February 12, 2010 Implicit Functions and Their Derivatives Up till now we have only worked with functions in which the endogenous variables are explicit
More informationECONOMICS TRIPOS PART I. Friday 15 June to 12. Paper 3 QUANTITATIVE METHODS IN ECONOMICS
ECONOMICS TRIPOS PART I Friday 15 June 2007 9 to 12 Paper 3 QUANTITATIVE METHODS IN ECONOMICS This exam comprises four sections. Sections A and B are on Mathematics; Sections C and D are on Statistics.
More informationECON2285: Mathematical Economics
ECON2285: Mathematical Economics Yulei Luo FBE, HKU September 2, 2018 Luo, Y. (FBE, HKU) ME September 2, 2018 1 / 35 Course Outline Economics: The study of the choices people (consumers, firm managers,
More information(a) Write down the Hamilton-Jacobi-Bellman (HJB) Equation in the dynamic programming
1. Government Purchases and Endogenous Growth Consider the following endogenous growth model with government purchases (G) in continuous time. Government purchases enhance production, and the production
More informationLecture 4: Optimization. Maximizing a function of a single variable
Lecture 4: Optimization Maximizing or Minimizing a Function of a Single Variable Maximizing or Minimizing a Function of Many Variables Constrained Optimization Maximizing a function of a single variable
More informationz = f (x; y) f (x ; y ) f (x; y) f (x; y )
BEEM0 Optimization Techiniques for Economists Lecture Week 4 Dieter Balkenborg Departments of Economics University of Exeter Since the fabric of the universe is most perfect, and is the work of a most
More informationProblem Set 2 Solutions
EC 720 - Math for Economists Samson Alva Department of Economics Boston College October 4 2011 1. Profit Maximization Problem Set 2 Solutions (a) The Lagrangian for this problem is L(y k l λ) = py rk wl
More informationRice University. Answer Key to Mid-Semester Examination Fall ECON 501: Advanced Microeconomic Theory. Part A
Rice University Answer Key to Mid-Semester Examination Fall 006 ECON 50: Advanced Microeconomic Theory Part A. Consider the following expenditure function. e (p ; p ; p 3 ; u) = (p + p ) u + p 3 State
More informationChapter 4. Maximum Theorem, Implicit Function Theorem and Envelope Theorem
Chapter 4. Maximum Theorem, Implicit Function Theorem and Envelope Theorem This chapter will cover three key theorems: the maximum theorem (or the theorem of maximum), the implicit function theorem, and
More informationPrinciples in Economics and Mathematics: the mathematical part
Principles in Economics and Mathematics: the mathematical part Bram De Rock Bram De Rock Mathematical principles 1/65 Practicalities about me Bram De Rock Office: R.42.6.218 E-mail: bderock@ulb.ac.be Phone:
More informationThe Real Business Cycle Model
The Real Business Cycle Model Macroeconomics II 2 The real business cycle model. Introduction This model explains the comovements in the fluctuations of aggregate economic variables around their trend.
More informationECON 5111 Mathematical Economics
Test 1 October 1, 2010 1. Construct a truth table for the following statement: [p (p q)] q. 2. A prime number is a natural number that is divisible by 1 and itself only. Let P be the set of all prime numbers
More informationThe Envelope Theorem
The Envelope Theorem In an optimization problem we often want to know how the value of the objective function will change if one or more of the parameter values changes. Let s consider a simple example:
More informationHicksian Demand and Expenditure Function Duality, Slutsky Equation
Hicksian Demand and Expenditure Function Duality, Slutsky Equation Econ 2100 Fall 2017 Lecture 6, September 14 Outline 1 Applications of Envelope Theorem 2 Hicksian Demand 3 Duality 4 Connections between
More informationRice University. Fall Semester Final Examination ECON501 Advanced Microeconomic Theory. Writing Period: Three Hours
Rice University Fall Semester Final Examination 007 ECON50 Advanced Microeconomic Theory Writing Period: Three Hours Permitted Materials: English/Foreign Language Dictionaries and non-programmable calculators
More informationAdvanced Microeconomics
Advanced Microeconomics Leonardo Felli EC441: Room D.106, Z.332, D.109 Lecture 8 bis: 24 November 2004 Monopoly Consider now the pricing behavior of a profit maximizing monopolist: a firm that is the only
More informationSeptember Math Course: First Order Derivative
September Math Course: First Order Derivative Arina Nikandrova Functions Function y = f (x), where x is either be a scalar or a vector of several variables (x,..., x n ), can be thought of as a rule which
More informationWeek 10: Theory of the Firm (Jehle and Reny, Chapter 3)
Week 10: Theory of the Firm (Jehle and Reny, Chapter 3) Tsun-Feng Chiang* *School of Economics, Henan University, Kaifeng, China November 22, 2015 First Last (shortinst) Short title November 22, 2015 1
More information1. Constant-elasticity-of-substitution (CES) or Dixit-Stiglitz aggregators. Consider the following function J: J(x) = a(j)x(j) ρ dj
Macro II (UC3M, MA/PhD Econ) Professor: Matthias Kredler Problem Set 1 Due: 29 April 216 You are encouraged to work in groups; however, every student has to hand in his/her own version of the solution.
More informationStudy Skills in Mathematics. Edited by D. Burkhardt and D. Rutherford. Nottingham: Shell Centre for Mathematical Education (Revised edn 1981).
Study Skills in Mathematics. Edited by D. Burkhardt and D. Rutherford. Nottingham: Shell Centre for Mathematical Education (Revised edn 1981). (Copies are available from the Shell Centre for Mathematical
More informationExaminers: R. Grinnell Date: April 19, 2013 E. Moore Time: 9:00 am Duration: 3 hours. Read these instructions:
University of Toronto at Scarborough Department of Computer and Mathematical Sciences FINAL EXAMINATION ***** Solutions are not provided***** MATA33 - Calculus for Management II Examiners: R. Grinnell
More information1 Objective. 2 Constrained optimization. 2.1 Utility maximization. Dieter Balkenborg Department of Economics
BEE020 { Basic Mathematical Economics Week 2, Lecture Thursday 2.0.0 Constrained optimization Dieter Balkenborg Department of Economics University of Exeter Objective We give the \ rst order conditions"
More informationECON 5118 Macroeconomic Theory
ECON 5118 Macroeconomic Theory Winter 013 Test 1 February 1, 013 Answer ALL Questions Time Allowed: 1 hour 0 min Attention: Please write your answers on the answer book provided Use the right-side pages
More informationECON Answers Homework #4. = 0 6q q 2 = 0 q 3 9q = 0 q = 12. = 9q 2 108q AC(12) = 3(12) = 500
ECON 331 - Answers Homework #4 Exercise 1: (a)(i) The average cost function AC is: AC = T C q = 3q 2 54q + 500 + 2592 q (ii) In order to nd the point where the average cost is minimum, I solve the rst-order
More informationOptimization. A first course on mathematics for economists Problem set 4: Classical programming
Optimization. A first course on mathematics for economists Problem set 4: Classical programming Xavier Martinez-Giralt Academic Year 2015-2016 4.1 Let f(x 1, x 2 ) = 2x 2 1 + x2 2. Solve the following
More informationChapter 4 Differentiation
Chapter 4 Differentiation 08 Section 4. The derivative of a function Practice Problems (a) (b) (c) 3 8 3 ( ) 4 3 5 4 ( ) 5 3 3 0 0 49 ( ) 50 Using a calculator, the values of the cube function, correct
More information1 + x 1/2. b) For what values of k is g a quasi-concave function? For what values of k is g a concave function? Explain your answers.
Questions and Answers from Econ 0A Final: Fall 008 I have gone to some trouble to explain the answers to all of these questions, because I think that there is much to be learned b working through them
More informationARE211, Fall 2005 CONTENTS. 5. Characteristics of Functions Surjective, Injective and Bijective functions. 5.2.
ARE211, Fall 2005 LECTURE #18: THU, NOV 3, 2005 PRINT DATE: NOVEMBER 22, 2005 (COMPSTAT2) CONTENTS 5. Characteristics of Functions. 1 5.1. Surjective, Injective and Bijective functions 1 5.2. Homotheticity
More informationExercises for Chapter 7
Exercises for Chapter 7 Exercise 7.1 The following simple macroeconomic model has four equations relating government policy variables to aggregate income and investment. Aggregate income equals consumption
More informationTopic 8: Optimal Investment
Topic 8: Optimal Investment Yulei Luo SEF of HKU November 22, 2013 Luo, Y. SEF of HKU) Macro Theory November 22, 2013 1 / 22 Demand for Investment The importance of investment. First, the combination of
More informationStructural Properties of Utility Functions Walrasian Demand
Structural Properties of Utility Functions Walrasian Demand Econ 2100 Fall 2017 Lecture 4, September 7 Outline 1 Structural Properties of Utility Functions 1 Local Non Satiation 2 Convexity 3 Quasi-linearity
More informationIndustrial Organization
Industrial Organization Lecture Notes Sérgio O. Parreiras Fall, 2017 Outline Mathematical Toolbox Intermediate Microeconomic Theory Revision Perfect Competition Monopoly Oligopoly Mathematical Toolbox
More informationYou are permitted to use your own calculator where it has been stamped as approved by the University.
ECONOMICS TRIPOS Part I Friday 11 June 004 9 1 Paper 3 Quantitative Methods in Economics This exam comprises four sections. Sections A and B are on Mathematics; Sections C and D are on Statistics. You
More informationPhD Qualifier Examination
PhD Qualifier Examination Department of Agricultural Economics July 26, 2013 Instructions The exam consists of six questions. You must answer all questions. If you need an assumption to complete a question,
More informationMath Review ECON 300: Spring 2014 Benjamin A. Jones MATH/CALCULUS REVIEW
MATH/CALCULUS REVIEW SLOPE, INTERCEPT, and GRAPHS REVIEW (adapted from Paul s Online Math Notes) Let s start with some basic review material to make sure everybody is on the same page. The slope of a line
More informationMathematical Economics. Lecture Notes (in extracts)
Prof. Dr. Frank Werner Faculty of Mathematics Institute of Mathematical Optimization (IMO) http://math.uni-magdeburg.de/ werner/math-ec-new.html Mathematical Economics Lecture Notes (in extracts) Winter
More informationEcon 101A Problem Set 1 Solution
Econ 101A Problem Set 1 Solution Problem 1. Univariate unconstrained maximization. (10 points) Consider the following maximization problem: max x f(x; x 0)=exp( (x x 0 ) 2 ) 1. Write down the first order
More informationMarket Failure: Externalities
Market Failure: Externalities Ram Singh Lecture 21 November 10, 2015 Ram Singh: (DSE) Externality November 10, 2015 1 / 18 Questions What is externality? What is implication of externality for efficiency
More informationMath for Economics 1 New York University FINAL EXAM, Fall 2013 VERSION A
Math for Economics 1 New York University FINAL EXAM, Fall 2013 VERSION A Name: ID: Circle your instructor and lecture below: Jankowski-001 Jankowski-006 Ramakrishnan-013 Read all of the following information
More informationMath 205 Final Exam 6:20p.m. 8:10p.m., Wednesday, Dec. 14, 2011
Math 205 Final Exam 6:20p.m. 8:10p.m., Wednesday, Dec. 14, 2011 Instructor: Class Time: Name: No books or notes are allowed. Please read the problems carefully and do all you are asked to do. You must
More information