Final Exam Price Theory
FINAL EXAM MATERIAL
Lecture notes: see Blackboard
Tutorial problem sets: see Blackboard
Book chapters:
Varian, 8th ed. 1 The market 2 Budget constraint 3 Preferences 4 Utility 5 Choice 6 Demand 8 Slutsky equation (no algebra required) 14 Consumer's surplus (no algebra required) 15 Market demand 18 Technology 19 Profits maximisation 20 Cost minimisation 16 Equilibrium 31 Exchange and Welfare Theorems (no algebra required)
Format of exam: see mock exam; past exam papers may be retrieved from the library
Distribution of marks in exam: the exam has two parts A and B
Part A: 4 problems, answer all questions in this part 80%
Note: show all your work on these problems. Clearly label diagrams and indicate the important points in them. Explain notation if different from textbook/lecture.
Part B: 2 Applied problems, choose ONE of them 20%
Note: the applied question should be answered using concise and in-depth economic reasoning. The presentation of the arguments (supported by diagrams and/or appropriate algebra) matters for the mark on this question.
Advice for exam preparation:
1. Understanding
The understanding of economic models and concepts takes a lot of time and independent study. The minimum to gain this understanding is to read the book chapters in Varian along with lecture notes and tutorial exercises. Starting to review the module content two weeks before the exam is an almost certain way to fail the exam. It takes time to "process" the material step by step.
2. Mathematics
A lack of proficiency in mathematical tools such as calculus is an issue in the exam. Economics cannot be done without a sound understanding of mathematics. It is not everything, but an important part of the discipline of economics to know how to deal with functions, derivatives, integrals, ...
In addition to the maths used to answer a question, each steps needs to be commented in words, e.g. before
Lecture notes: see Blackboard
Tutorial problem sets: see Blackboard
Book chapters:
Varian, 8th ed. 1 The market 2 Budget constraint 3 Preferences 4 Utility 5 Choice 6 Demand 8 Slutsky equation (no algebra required) 14 Consumer's surplus (no algebra required) 15 Market demand 18 Technology 19 Profits maximisation 20 Cost minimisation 16 Equilibrium 31 Exchange and Welfare Theorems (no algebra required)
Format of exam: see mock exam; past exam papers may be retrieved from the library
Distribution of marks in exam: the exam has two parts A and B
Part A: 4 problems, answer all questions in this part 80%
Note: show all your work on these problems. Clearly label diagrams and indicate the important points in them. Explain notation if different from textbook/lecture.
Part B: 2 Applied problems, choose ONE of them 20%
Note: the applied question should be answered using concise and in-depth economic reasoning. The presentation of the arguments (supported by diagrams and/or appropriate algebra) matters for the mark on this question.
Advice for exam preparation:
1. Understanding
The understanding of economic models and concepts takes a lot of time and independent study. The minimum to gain this understanding is to read the book chapters in Varian along with lecture notes and tutorial exercises. Starting to review the module content two weeks before the exam is an almost certain way to fail the exam. It takes time to "process" the material step by step.
2. Mathematics
A lack of proficiency in mathematical tools such as calculus is an issue in the exam. Economics cannot be done without a sound understanding of mathematics. It is not everything, but an important part of the discipline of economics to know how to deal with functions, derivatives, integrals, ...
In addition to the maths used to answer a question, each steps needs to be commented in words, e.g. before