FinalExam
Student’s name: ____________________
Student’s CU e-mail prefix: ___________
G4076 Final Exam
Distributed: November 21, 2014;
Due: December 5, 2014.
Instructor: Alexei Chekhlov
Each question is not difficult, of intermediate or below difficulty level, but there are a total of 44 questions. When you are asked to write something “in detail”, it is understood that you need to write more than one sentence answer, but try not to write more than ten sentences. Please, allocate enough time to complete the exam on time. When submitting your Final Exam, please, make sure it has your name and e-mail prefix on it.
This exam is take-home, open-book, which means that you are allowed to use the BKM textbook and all the materials that are uploaded into the CourseWorks folders. However, if there are reasons to believe that in the class we have either copying between two or more students or copying by a student from an outside non-authorized source, as there none were authorized other than the above, there will be appropriate consequences. Here are some of the Columbia University graduate school policies for your reference: http://gsas.columbia.edu/content/academic-integrity-and-responsible-conduct-research If you believe that these policies are violated, please, let the Instructor know.
Chapter 1
1.6. Suppose that the housing prices across the world double.
a. Has society become richer?
No. Although houses are worth more in terms of value now, the overall production volume of the economy has not increased as a result.
b. Are homeowners wealthier?
Yes. A house is an asset to the homeowner. If housing prices doubled, the equity value held in these assets increased. There is an increased value in these assets and homeowners are now wealthier.
c. Please, reconcile your answers to a. and b. Is anyone worse off as a result of such change?
Yes. The people that are worse off as a result of such change are the potential homeowners that are looking to buy a home now.
Student’s CU e-mail prefix: ___________
G4076 Final Exam
Distributed: November 21, 2014;
Due: December 5, 2014.
Instructor: Alexei Chekhlov
Each question is not difficult, of intermediate or below difficulty level, but there are a total of 44 questions. When you are asked to write something “in detail”, it is understood that you need to write more than one sentence answer, but try not to write more than ten sentences. Please, allocate enough time to complete the exam on time. When submitting your Final Exam, please, make sure it has your name and e-mail prefix on it.
This exam is take-home, open-book, which means that you are allowed to use the BKM textbook and all the materials that are uploaded into the CourseWorks folders. However, if there are reasons to believe that in the class we have either copying between two or more students or copying by a student from an outside non-authorized source, as there none were authorized other than the above, there will be appropriate consequences. Here are some of the Columbia University graduate school policies for your reference: http://gsas.columbia.edu/content/academic-integrity-and-responsible-conduct-research If you believe that these policies are violated, please, let the Instructor know.
Chapter 1
1.6. Suppose that the housing prices across the world double.
a. Has society become richer?
No. Although houses are worth more in terms of value now, the overall production volume of the economy has not increased as a result.
b. Are homeowners wealthier?
Yes. A house is an asset to the homeowner. If housing prices doubled, the equity value held in these assets increased. There is an increased value in these assets and homeowners are now wealthier.
c. Please, reconcile your answers to a. and b. Is anyone worse off as a result of such change?
Yes. The people that are worse off as a result of such change are the potential homeowners that are looking to buy a home now.