1. Consider this game. Given that p is the probability that Player 1 will choose N and Player 2 will choose Y, which of the following is a pure strategy Nash equilibrium?

2. When are expected real 'r' and nominal rates 'i' the same when an investor is risk-loving?

3. Suppose a government faced a series of discrete policy choices building a tax code. Earlier decisions would affect the options of later ones. What's the best economic tool to use to evaluate the process?

4. Suppose a firm's profit is given by this function,
.The government imposes a lump sum profit tax of 5.For what values of
will profit be positive?

5. Which mathematical technique can be used to solve the consumer's optimization problem?

6. To determine the slope of an indifference curve at a particular point for two goods, which mathematical tool is most appropriate?

7. Suppose 100 people at an auction are bidding on a piece of land that is known to contain silver deposits.The low bid is $3 million, the average bid is $5 million, and the high bid is $9 million.What is the value of the winner's curse?

8. If supply is
and demand is
, then what is the market equilibrium price?

9. The compound rate of interest on a savings account is 4 percent.Inflation is 1 percent.You deposit $50,000 and leave it in the account for three years.What will be the real purchasing power of the value in the account at the end of three years?

10. Suppose a firm's production choices were given by this multivariate expression:
.What tools would you use to solve for marginal contribution to production of
?

11. You just won the Irish Sweepstakes and can either take a lump sum distribution today of €250,000 or a 20-year 5 percent annuity paying €20,000 at the end of every year for 20 years.What is the best choice?

12. Suppose a firm has a production process governed by this function:
.What would be the marginal effect of using an additional unit of
and holding
constant?

13. The compound rate of interest on a savings account is 4 percent.Inflation is 2 percent.You deposit $10,000 and leave it in the account for two years.What will be the real purchasing power of the value in the account at the end of two years?

14. Suppose the government in a closed country imposes a tax of 5 percent on working people's wages (w) and redistributes the tax to nonworking people (n) in society as a lump sum distribution.This causes working people to reduce labor by 10 percent.After the tax is levied and distributed, what is the deadweight loss to society relative to a lump sum tax system?

15. The compound rate of interest on a savings account is 4 percent.Inflation is 1 percent.You deposit $250,000 and leave it in the account for three years.If the bank charges you a one-time $99 fee to open the account, what will be the value in the account at the end of three years?

16. Given a utility function,
, what is the slope of the indifference curve at a satisfaction level of 200?

17. Given a utility function defined as
, what is the marginal utility with respect to good
?

18. Suppose you consider bidding at a government auction where the bids are sealed in envelopes with only one chance to bid.The winning bid gets the job and all others receive nothing.You intend to bid on a job at a price of $10 million, and you know that your cost to complete the job is $9 million. As you are about to submit the bid, you find out that a government official will have to be bribed $1 million to start the job.If the probability that you'll win is 10 percent, what is the rational course of action?

19. Consider this game. Given that p is the probability that Player 1 will choose N and Player 2 will choose Y, which of the following is a pure/mixed strategy Nash equilibrium?

20. Given this function,
, what is the minimum value for all values of
?

21. What is the value of an annuity paying $7,000 at the end of every year for 5 years at a rate of 2 percent?

22. Given this function,
, what is the partial derivative with respect to
?

23. What is the value of an annuity paying $9,000 at the end of every year for nine years at a rate of 9 percent?

24. Consider this duopoly game. Each player can either take a cookie off a table or agree to share 16 cookies.What factor would most likely drive a Pareto optimal solution?

25. Consider this duopoly game. Each player can either take a cookie off a table or agree to share 16 cookies.What is the Pareto optimal outcome?