ECN 1A: Principles of Microeconomics

Optional Homework Assignments

Week of 11/10-11/17
Price Discrimination
Ch. 10: 23-29, 36, 37
Externalities
Ch. 12: 110, 111, 90, 91, 92, 63-70. 

Week of 11/3-11/9
Government: 
Ch. 9: 15-19, 37-42, 76-83, 88-96
Monopoly
Ch. 10: 1-6, 38-52

Week of 10/27 -11/2
Perfect Competition
Chapter 7: 52-55 (identifiying geometry), 30-34 (individual supply behavior), 64-72, 78-80
Chapter 8: 16-24 (long-run adjustment), 104-121 (definitions) 123-127 (short-run equilibrium)

Week of 10/20-10/26
Production Costs

Chapter 6: 2,4, 5, 19,20, 27-29, 30-35, 42-49



Week of 10/13 -10/19
Market Equilibrium, Consumer Surplus, Elasticity
Ch. 4: 84-87, 99-100, 113-115
Ch. 5: 8-14, 18-19, 29-31, 48-50, 58, 74-75


Week of 10/6 - 10/12

PPFs, MC and MB: Chapter 3. 41-47, 60-63, 72-76

Supply and Demand: Chapter 4. 7-18

Retirement Puzzle: Do the following two questions:
The retirement consumption puzzle is the empirical finding that:

  1. People drastically reduce their total expenditure after retirement, even though retirement is more or less voluntary.
  2. People drastically reduce their expenditure on entertainment and charitable giving after retirement, while simultaneously increasing their expenditure on food.
  3. People drastically reduce their expenditure on food after retirement, while simultaneously increasing their expenditure on entertainment and charitable giving.
  4. After retirement, people spend more money on food even though the quantities of food they purchase go down.
  5. None of the above.

Which of the following is most accurate about the empirical findings concerning the retirement consumption puzzle?

  1. Generally, the quantities of food consumed remain more or less the same after retirement.
  2. After retirement, the amount of money spent on food and the quantities of food consumed are both reduced.
  3. As a result of the reduction in the opportunity cost of time, the retirees eat out more often.
  4. As a result of the reduction in the opportunity cost of time, people reduce their shopping intensity after retirement.
  5. None of the above.
(Answers: C, A)
Links to Papers Discussed in Class

Income and Substitution Effects
"Economic Jihad." Reducing oil consumption in Iran

Marginal Benefit and Marginal Cost:
The Retirement Consumption Puzzle
(Especially "Shopping, Home Production, and Food Expenditures over the Entire Life cycle")
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