1. Which economic tool describes the set of all Pareto efficient combinations of goods?

2. Given a demand curve
, what is the price elasticity at point (2,2)?

3. Suppose that the relationship between economic growth
and carbon dioxide levels
is given by the following formula:
.To achieve the maximum sustainable growth, what is the optimal choice for carbon dioxide levels?

4. Suppose Tom can either hunt for birds
or forage for wild berries
on his isolated island property.He can catch nine birds or gather two pounds of berries in an hour.He only has eight hours a week to devote to these activities.His utility function for birds and berries is
.What is the equation of his production possibilities frontier?

5. In multivariate economic development models, which economic tool(s) can determine the contribution to growth of one variable, ceteris paribus?

6. In choosing an economic tool to calculate compound interest, which mathematical operation is part of the equation?

7. 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?

8. 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.All bidders must pay a $25,000 bribe to participate.You intend to bid on a job at a price of $10 million, and you know that your cost to complete the job is $8 million.If the probability that you'll win is 50 percent, what is the rational course of action?

9. 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?

10. Given this function,
, what is the maximum value for
?

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

12. 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?

13. Suppose a person starts at position
.Assume that the person's next and final discreet choice on a decision tree is to either move to
or
and the results of that choice are governed by the profit equation,
.What is the optimal result?

14. In backward induction, a likely outcome of a game can be predicted.What can we say about the likely outcome?

15. Given this function,
, what is the first derivative?

16. Suppose you bid on a diamond in a first-price sealed bid auction.You value the diamond at $10 million.Your probability of winning is 90 percent.What is your expected value of bidding $9 million?

17. Given this function,
, what is a local minimum value for
?

18. Suppose Fran can either hunt for birds
or forage for wild berries
on his isolated island property.He can catch four birds or gather two pounds of berries in an hour.He only has 10 hours a week to devote to these activities.His utility function for birds and berries is
.Using the information from the production possibilities frontier, what is the Pareto optimal allocation for birds?

19. In calculating an annuity, what mathematical technique can be applied to account for default?

20. 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?

21. 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?

22. Given this function,
, what is the maximum value for all values of
?

23. In univariate economic development models, which economic tool(s) can determine the maximum sustainable growth?

24. Suppose Fran can either hunt for birds
or forage for wild berries
on his isolated island property.He can catch four birds or gather two pounds of berries in an hour.He only has 10 hours a week to devote to these activities.His utility function for birds and berries is
.What is the marginal rate of transformation of birds for berries?

25. Suppose that the relationship between economic growth
and carbon dioxide levels
is given by the following formula:
. How much growth is attainable?