1
Q
When would consumers never exchange?
A
Pareto Efficient allocation needed for no trade
Occurs when exact same preferences and endowments –> in middle of edgeworth box
2
Q
When can an allocation be PE without it being on tangency
A
If it is on the boundary, the core is infeasible, the allocation on the boundary is PE since PE means there are no more feasible allocations
3
Q
How to derive dimensions of the edgeworth box?
A
Plug MRS(a) = MRS(b)
Xa = 20 - Xb
4
Q
Are origins also PE in quasilinear contract curves
A
Yes
5
Q
Draw quasilinear contract curve
A
6
Q
A
EC2A3
flashcards
Decks in class (35)
# Cards
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Topic 1: The Market System45
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Topic 2: General Competitive Equilibrium36
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3. Social Welfare56
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4. Markets and Inequality37
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5. Markets with behavioural consumers42
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6. Decision Making with Risk45
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7. Insurance Markets: Risk and Averse Selection65
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8(i) Adverse Selection in Products45
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8 (ii) Adverse Selection in Jobs25
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9. Assymetric Information - Moral Hazard55
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10. Public Goods and Externalities60
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Incentives and Solutions (Lazear, 2018)6
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Roth (2017)14
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Backhouse et al. (2020) & Sen (1971)14
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Starmans et al. (2017), Hufe et al. (2018), Nozick (1974), Sen (1974), Piketty (2013), Stiglitz (2012)16
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Week 5: Gubb (2015), Kahnemann and Thaler (2006) & Kahneman (2011)16
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Week 6-7: Stezka and Winter (2011) & Schemiser et al. (2014)14
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Week 8-9: Wyness et al. (2021), Feng and Graetz (2017) & Lazear (2018)17
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Week 10: Chan et al. (2018), Altundas et al. (2021)13
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Problem Set 16
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Problem Set 26
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Problem Set 37
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Problem Set 45
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PS54
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PS69
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PS72
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PS86
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PS98
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PS101
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Exam Hard qs1
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Interactive Session 17
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Interactive Session 27
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Interactive Session 32
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Interactive Session 42
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Interactive Session 56
