ECO206Y1 Study Guide - Final Guide: Risk Premium, Indifference Curve, Demand Curve
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You have 80 minutes to complete the exam. 1 term exam, nov 4, 2009: (15 points) mr tibs has preferences represented by the utility function u = h. Mr. tibs maximizes his utility at u = 640 when he works 8 hours a day. Explain and show graphically: a recent report suggests that the consumption of meat (especially beef) is a major contributor to global warming because cattle are a major source of methane gas. In order to reduce the consumption of beef, the government introduces a methane tax of . 00 per pound of beef. Wendy loves beef (especially all-beef burgers), and for her, beef is a normal good. Wendy currently buys 20 pounds of beef per month. Explain and show graphically: dan is a risk averter who tries to maximize the expected value of c. ,000 in safe assets, and he also owns a house that is located in the area where there are a lot of forest fires.
