Examination topics for the course “Microeconomics”, страница 2

Chapter 7

  1. Revealed Preference Analysis: Assumptions on Preferences, Principle of Preference Revelation, Direct Preference Revelation, Indirect Preference Revelation
  2. Axioms of Revealed Preference: The Weak Axiom of Revealed Preference (WARP), The Strong Axiom of Revealed Preference, Checking if Data Violate the WARP, Recovering Indifference Curves from choice data
  3. Index numbers: Quantity Index Numbers (the Laspeyres quantity index, the Paasche quantity index); Price Index Numbers (the Laspeyres price index, the Paasche price index)

Chapter 8

  1. Effects of a Price Change: Real Income Changes; The Overall (Total) Change in Demand – Decomposition into the Slutsky Pure Substitution Effect and the Income Effect; Slutsky’s Effects for Normal Goods, Slutsky’s Effects for Income-Inferior Goods, Slutsky’s Effects for Giffen Goods
  2. Slutsky Identity: Calculating Substitution Effect and Income Effect for given commodity demand function;  Slutsky Identity in terms of rates of Change, the Law of Demand; Substitution Effect and the Income Effect for perfect complements and perfect substitutes, Substitution Effect and the Income Effect for quasilinear preferences
  3. Effects of a Price Change: Real Income Changes; The Overall (Total) Change in Demand – Decomposition into the Hicks Pure Substitution Effect and the Income Effect; the Compensated Demand Curve

Chapter 15

  1. Market Demand Function: Horizontal Aggregation of Individual Demand Functions, Representative Consumer Model
  2. Demand Elasticity: Own-Price Elasticity, Cross-Price Elasticity, Income Elasticity, Economic Applications of Elasticity, Arc and Point Elasticities;
  3. Point Own-Price Elasticity: Elastic and Inelastic Demand, Revenue and Own-Price Elasticity of Demand, Marginal Revenue and Own-Price Elasticity of Demand

Chapter 18

  1. Production (Technological) Set: Input Bundles, Production Plans; Production Function, Isoquant and Isoquant Maps; Cobb-Douglas Technologies, Fixed-Proportions Technologies, Perfect-Substitutes Technologies; Average Factor (Input) Productivity, Marginal (Physical) Factor Products; Short Run and Long Run Analysis of Production Technology
  2. Returns-to-Scale: Increasing Returns-to-Scale, Constant Returns-to-Scale, Decreasing Returns-to-Scale, Returns-to-Scale of Homogeneous of degree “k” Production Function; Technical Rate-of-Substitution
  3. Neoclassical Production Functions: Basic Assumptions

Chapter 19

  1. Economic Profit: the Competitive Firm, the economic profit generated by the production plan, Short-run and Long-run Profit Maximization, Short-run and Long-run Iso-Profit Lines
  2. Short-Run Profit-Maximization: Graphical and Analytical Decisions, A Cobb-Douglas Example,  Comparative Statics of Short-Run Profit-Maximization (changes in output price p and input price w1)
  3. Long-run Profit Maximization Graphical and Analytical Decisions, A Cobb-Douglas Example, Returns-to-Scale and Profit-Maximization
  4. Revealed Profitability: Basic Idea and Assumptions on the Firm Behavior, implications of profit-maximization

 Chapter 20

  1. Cost function: the Cost-Minimization Problem, Iso-cost Lines, Graphical and Graphical and Analytical Decisions of the Cost-Minimization Problem; Cost Function for a Cobb-Douglas technology, technology with Fixed Factor Proportions (Factors – Perfect Substitutes), technology with Factors – Perfect Complements
  2. Average Total Production Costs: Relationship between Returns-to-Scale and Average Total Costs