Economics 2221A/B Study Guide - Midterm Guide: Problem Set, Factors Of Production, Normal Good
21 Feb 2018
School
Department
Course
Professor
Document Summary
This problem set is due monday, february 13th at the beginning of class. Be sure to review the syllabus for details about ps and their grading! Feel free to contact me via e-mail if you have speci c questions about this problem set. Exercise 1 (30 points) consider the same setup as in chapter 9. For each of the following cases, use the graphical framework reviewed in class to determine how the equilibrium, {c1, n s. Exercise 2 (15 points) (a) explain the roles of money. ), allowing individuals to trade current and future consumption. Once individuals in the economy agree on money being the sole medium of exchange, it is natural to then denote all prices in terms of money. Money can improve the e ciency of an economy in many ways, the most notable is related to the role of money as a medium of exchange.
