Intermediate Microeconomics

Econ 100A

Summer Session A, 6/22 - 8/1, 2009

TWR   8:00 AM-9:20 AM

Lecture Hall: PSYCH 1902

Professor Raymundo Rodriguez

Email: ray@econ.ucsb.edu

Office Hours:  NH 3037

           Mondays, 8 – 10am, or by appointment

 

TA sections:

Friday 9:30-10:50, Phelps 1445

Friday 11-12:20, GIRV 2129

 

TA: Julian Neira

Email: neira@econ.ucsb.edu

Office Hours:   NH 2047

Wednesday, 11am – 1pm, or by appointment

 

 

Answer Keys Final 09, Version A, B, C: Click Here

 

 

·        Final Exam Note: Since score sheets are not given for the final, you can find the answer key for all versions at the top of the page (in red). Final grades should be posted on GOLD soon.

 

 

 

Syllabus: Click Here

 

 

Quiz 1, Summer 08: Click Here

 

Answer Key Quiz 1: Click Here

 

Quiz 2, Summer 08: Click Here

 

Answer Key Quiz 2: Click Here

 

Final, Summer 08: Click Here

 

Answer Key Final: Click Here

 

 

 

 

Announcements:

·        Next Thursday July 2nd, the TA will give a review session during the regular lecture time in PSYCH 1902. There is no TA section on Friday July 3rd.

·        Please bring the Workouts book to the TA section. We will go over problems from the Workouts during section.

·        Practice Quiz 1 has been posted.

·        Answer Key Quiz 1 has been posted.

·        The correct answer to Question 7 from Practice Quiz 1 -2008 is (A) and not (C). The indifference curves are concave (instead of convex) so the solution is one of the corners. Which corner? Calculate the utility at each of the corners of the budget line, that is at points (0,19/9) and (19,0), and find where the utility is higher. It is highest at point (19,0). It is possible to find the point where MRS=(slope of budget line) but since the preferences are concave this person can achieve a higher utility by picking the corners. Graph it and it should be clear.

·        Next week, the TA will hold office hours on Monday July 6 from 11am to 1pm. No office hours will be held on Wednesday. 

·        Practice Quiz 2 and Answer Key Quiz 2 have been posted.

·        We will go over problems from Ch 9, 10 and 11 in the next TA section. We will not go over Practice Quiz 2. The TA will move his office hours next week to Monday July 20 from 11 to 1pm to answer questions about Practice Quiz 2 and other questions you may have before the test.  Therefore no office hours will be held on Wednesday July 22.

·        For those of you in the 11-12:20 session. On problem 11.11, we found the present value of the lifetime income of a person with a high school diploma (part A, equal 233,753), not that of a person with a Bachelors degree. If you want to find the lifetime income of someone with a Bachelors degree from the point of view of a recent high school graduate (part B), you have to take into account the four years of zero income that you spend studying. Therefore the calculation is

 

[(24,000/r) - (24,000/r)(1/(1+r)^43)] x [1/(1+r)^4] = 346,441

           

and the premium of a Bachelors degree would therefore be 346,441-253,753 = 92,688 (in 1984 values). To evaluate if college education is financially worthwhile, you would then compare this premium to the present value cost of tuition in 1984 terms, which we are not told but you could probably ask around. It should be worth it. 

·        Practice final and answer key have been posted.

·        Reminder: Problems on Compensating and Equivalent Variation on chapter 14 are not on the final.

 

 

 

 

 

 

 

Problems for TA section:

·        June 25: We will go over problems 2.1, 3.2, 3.3, 3.4, 4.1, 4.2, and 4.4 from the Workouts (not the quizzes), plus a quick calculus review. In general, you will benefit more if you try out the problems on your own before the section. We will not cover problem 4.0, but it is essential that everyone knows how to do the calculations in this problem. 

·        July 2 (Thursday): General review for the first half of the class, we will do the 2008 Quiz 1 (posted) on the second half. I’ll hand out copies of the quiz. We can include some problems from the Workouts if time permits.

·        July 10: Hand out test score sheets and go over a couple of the harder problems of Quiz 1. We will then cover problems 7.1, 7.3, 8.1 and 8.6 from the Workouts.  

·         July 17: 9.3, 9.7, 9.11, 10.1, 10.2, 11.9, 11.11 from the Workouts

·         July 24: Hand out test score sheets and go over a couple of the harder problems of Quiz 2. Then we will do problems 12-17 of the practice final (posted) which are the problems that belong to chapters 12 and 14.