Economics 206y

Copyright © 1997-2018 Carolyn Pitchik

Syllabus

• ECO 206 syllabus 2018-2019 (a pdf file)

Canvas course web page

• Please note that there will be information posted on Canvas as well as information posted on this course website.
• Please see the Canvas course web page to find out how to access the lecture notes and past tests on this course website.

What's New? (most recent at top)

• 05/12/2018 Please see below for Solutions to Questions from Past Final Exams grouped by exam year
• 05/12/2018 Please see below for announcements 1-5 of 5 about the final exam
• 05/12/2018 Please see below for the Expanded Lecture Review of Material for Course
• 05/12/2018 Please see below for the Expanded Lecture Review of Material for Test #4
• 28/11/2018 Please see below for Solutions to test #4 2018-2019
• 28/11/2018 Please see below for the Expanded Lecture Review of Material for Test #4
• 21/11/2018 Please see below for the Expanded Lectures on Intertemporal Consumption
• 21/11/2018 Please see below for the Expanded Lectures on Labour Supply
• 19/11/2018 Please see announcement below regarding test #4
• 14/11/2018 Please see below for the Expanded Lectures on Externalities and Public Goods
• 14/11/2018 Please see below for Solutions to test #3 2018-2019
• 14/11/2018 Please see below for the Expanded Lecture Review of Material for Test #3
• 14/11/2018 Please see below for the Expanded Lectures on Factor Demand
• 14/11/2018 Please see below for Questions from Past Tests on Factor Demand, Labour Supply, Intertemporal Consumption, Externalities and Public Goods
• 14/11/2018 Please see below for Solutions to Questions from Past Tests on Factor Demand, Labour Supply, Intertemporal Consumption, Externalities and Public Goods
• 08/11/2018 Please see announcement below regarding test #3
• 04/11/2018 Please see below for the Expanded Lectures on Oligopoly
• 04/11/2018 Please see below for the updated version of the Expanded Lectures on Monopoly
• 31/10/2018 Please see below for Compilation of Questions from Past Tests on Exchange Economies, Efficiency, Monopoly and Oligopoly
• 31/10/2018 Please see below for Solutions to Questions from Past Tests on Exchange Economies, Efficiency, Monopoly and Oligopoly
• 31/10/2018 Please see below for the Expanded Lectures on Monopoly
• 31/10/2018 Please see below for the Expanded Lectures on Eficiency
• 31/10/2018 Please see below for the Expanded Lectures on Perfect Competition
• 28/10/2018 Please see below for the Expanded Lectures on Exchange Economies
• 28/10/2018 Please see below for Solutions to test #2 2018-2019
• 18/10/2018 Please see below for the Expanded Lecture Review of Material for Test #2
• 17/10/2018 Please see below for the Expanded Lectures on Cost
• 04/10/2018 Please see below for the Expanded Lectures on Elasticity
• 04/10/2018 Please see below for Solutions to Past Test Questions on Uncertainty, Insurance, Moral Hazard and Adverse Selection, Elasticity, Production, Cost, Profit Maximization
• 04/10/2018 Please see below for the Expanded Lectures on Production
• 04/10/2018 Please see announcement below regarding test #2
• 04/10/2018 Please see below for Past Test Questions on Uncertainty, Insurance, Moral Hazard and Adverse Selection, Elasticity, Production, Cost, Profit Maximization
• 04/10/2018 Please see below for Expanded Lectures on Moral Hazard and Adverse Selection
• 28/09/2018 Please see below for the Expanded Lectures on Insurance for the course
• 28/09/2018 Please see below for the Expanded Lectures on Uncertainty for the course
• 26/09/2018 Please see below for Solutions to test #1 2018-2019
• 22/09/2018 Please see below for the Expanded Lecture Review of Material for Test #1
• 18/09/2018 Please see below for the revised Expanded Lectures on Consumer Welfare for the course
• 17/09/2018 Please see below for the Expanded Lectures on Consumer Welfare for the course
• 15/09/2018 Please see below for Solutions to test #1 from 1995-1996 up until 2017-2018
• 13/09/2018 Please see below for the Expanded Lectures on Hicksian Demand for the course
• 13/09/2018 Please see below for the Expanded Lectures on Marshallian Demand for the course
• 13/09/2018 Please see below for the Expanded Lectures on Budget Sets for the course
• 12/09/2018 Please see below for the Expanded Lectures on Preferences for the course
• 10/09/2018 Please see below for Solutions to Past Test Questions on Preferences, Budget Lines, Marshallian Demand, Hicksian Demand, Consumer Welfare
• 29/09/2017 Please see below for Past Test Questions on Preferences, Budget Lines, Marshallian Demand, Hicksian Demand, Consumer Welfare
• 08/09/2018 Please see announcement below regarding test #1
• 08/09/2018 Please see below for the Expanded Lectures on Mathematics for the course
• 04/09/2018 Please see above for the current course syllabus

Announcement regarding Make-Up Test

• The make-up test for ECO 206 has been scheduled for Tuesday 04 December
Those who missed any test will automatically get zero unless they write the make-up which may be used to replace no more than ONE missed term test
• A student may NOT use a final exam grade for a term test that was missed
• Any who missed a test must have provided me with an official document within two weeks of the missed test
• Only eligible students are allowed to write the make-up test to replace the zero on ONE missed test
• Anyone who is eligible for the make-up test should have received an email from me
• There are no aids allowed
• You are responsible for all the material from the entire year's work

Announcement 1 of 5 regarding Final Exam: Exam Format

• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during exams
• Unauthorized aids include (but not limited to) cell phones, Electronic Devices ...
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone.
• There are NO AIDS ALLOWED
• For the exam date and time please refer to Final Exam Schedule
• There are 6 questions. The questions appear on pages 2, 10, 18, 26, 34, and 42 of the fifty page exam. Each question is worth 17 marks. You must do all questions. There are no choices.

Announcement 2 of 5 regarding Final Exam: Topics

• You are responsible for all the material covered through the entire academic year (including examples and questions) in the text book, study guide and lectures (in class and on-line)
• You are responsible for all the material and chapters listed on the syllabus
• You are responsible for all the material covered in the syllabus chapters (including examples and questions) in the text book, study guide and lectures (in class and on-line)
• If the topic appeared in class, or in the lectures, or in a text chapter, then you are responsible for it.
• The list of chapters and sub-topics is long but includes, AT A MINIMUM, the topics that follow.
• The following list is not meant to be all inclusive. Look at the syllabus, expanded lecture notes, and past announcements for term tests to see some of the topics we covered up until the last test
• The final exam is comprehensive so any question can cover a number of topics and the number of firms or agents may be unknown and represented by n.
• The final exam is comprehensive so any question can include any number of agents .
• You are responsible for all the material in chapters 1-5,7-9,12-20
• You are responsible for all the material covered in any of the previous tests
• Topics from previous tests include but not limited to: Preferences, Budget Lines, Marshallian Demand, Hicksian Demand, Consumer Welfare ,Uncertainty, Insurance, Moral Hazard and Adverse Selection, Elasticity, Production, Cost and Profit-Maximization, Exchange Economies, Efficiency, Monopoly and Oligopoly, Factor Demand, Labour Supply, Intertemporal Consumption, Externalities and Public Goods
• You are responsible for all the material covered after the last test
• Topics covered after the last test may include but not limited: Intertemporal Consumption, Externalities and Public Good, ...
• You are responsible for being able to solve the firm's cost function when there is any finite number of goods
• You are responsible for knowing how to recover information about the production function from the cost function
• You are responsible for knowing how to recover information about the cost function from the production function
• You are responsible for knowing how to recover information about the cost function and about the production function from firm's cost-minimizing bundle
• You are responsible for knowing about elasticity, including elasticity of substitution
• You are responsible for knowing about homotheticity, homogeneity, envelope theorem, slutzky's equation
• You are responsible for all the material we covered on perfect competition
• You are responsible for the idea of the solution concepts we used in Oligopoly (Cournot, Bertrand, and Stackelberg), Externalities (Laissez-faire outcome, Efficient outcome) and Public goods (Laissez-faire outcome, Efficient outcome)
• You are responsible for all the material we covered on perfect competition, efficiency and exchange economies, on monopoly and on oligopoly
• You are responsible for all the material covered on these topics (including examples and questions) in the text book, study guide and lectures (in class and on-line)
• You are responsible for being able to solve the consumer's primal and dual problems when there is any finite number of goods
• You are responsible for knowing how to recover information about the value function from the expenditure function
• You are responsible for knowing how to recover information about the expenditure function from the value function
• You are responsible for knowing that the relationship between the firm's production and cost function are analagous to the relationship between the consumer's utility and expenditure functions
• You are responsible for knowing how to recover information about the utiity function from the expenditure function
• You are responsible for knowing how to recover information about the utiity function from the Hicksian demand functions
• You are responsible for knowing all the relationships among the value function, expenditure function, Marshallian demand and Hicksian demand
• You are responsible for knowing how to recover information about the expenditure function from the utility function
• You are responsible for understanding how to solve the problem and how to derive comparative statics in all applications of consumer theory.
• Such applications include but not limited to: Exchange economies, Uncertainty, Labor supply, Intertemporal Consumption, Laissez-faire outcome,
• You are responsible for knowing how a perfectly competitive firm maximizes profits when it faces any number of plants
• You are responsible for being able to find the competitive equilibrium exchange rate and allocation for any combination of preferences in an exchange economy with any number of goods and individuals including an unknown number (like n or m)
• You are responsible for being able to infer whether a given exchange rate or allocation is a competitive outcome in an exchange economy with any number of goods and individuals including an unknown number (like n or m)
• You are responsible for being able to infer what effect a change in endowments would have on the competititve equilibrium exchange rate and allocation in an exchange economy with any number of goods and individuals including an unknown number (like n or m)
• You are responsible for being able to find the profit-maximizing price for a regular monopoly
• You are responsible for being able to find the profit-maximizing prices and quantities for a monopolist who faces any number of segmented markets and any number of plants
• You are responsible for being able to find the profit-maximizing prices and quantities for a monopolist who has multiple plants
• You are responsible for being able to find the profit-maximizing prices and quantities for a monopolist who faces segmented markets and multiple plants
• You are responsible for being able to infer the market demand elasticities with respect to price for a profit-maximizing monopolist and to use the elasticities to provide explanation for the difference in prices.
• You are responsible for knowing how to find a Nash equilibrium in the Cournot and Bertrand models for any finite number of firms who each may face any number of markets and any number of plants and who may not face identical costs
• You are responsible for being able to compare the Cournot and Bertrand outcomes.
• You are responsible for being able to find a Stackelberg equilibrium (with 2 or 3 firms who may be symmetric or asymmetric) and to compare it to the Cournot, Bertrand and efficient outcomes.
• You are responsible for understanding efficiency in any context including that of competition, monopoly, oligopoly, exchange economiies, externalities and public goods.
• You are responsible for factor demand, externalities and public goods
• You are responsible for the material covered in class but not covered in the previous tests, In particular, you should
• Know how to obtain the optimal intertemporal consumption bundle in the presence of two or more periods
• Know how to find utility maximizing consumption over two or three periods whether the consumption across periods are perfect substitutes or perfect complements or preferences over each that satisfy all assumptions strictly or weakly including when the indifference curves touch the axes.
• Know how to calculate the Nash equilibrium or laissez-faire public good production levels in the presence of N individuals with identical or asymmetric tastes and identical or asymmetric production possibility frontiers whether N is a given integer or represents an integer
• Know how to obtain the Nash equilibrium and the efficient outcome in the presence of a public good with any number of symmetric individuals or with two asymmetric individuals (who may differ due to preferences or due to PPF's)
• Know how to obtain the best response of one individual to another's public good production.
• Know how to calculate the Nash equilibrium or laissez-faire public good production levels in the presence of N individuals with identical or asymmetric tastes and identical or asymmetric production possibility frontiers
• Know the relationship between the efficient level of the public good and the Nash equilibrium level
• Know how the efficient public good levels can be achieved
• You should be prepared to solve factor demand problems for each organization of the industry in input and output markets, for any number of factors, for any number of markets
• You should be prepared to solve problems that involve preferences that satisfy all assumptions strictly or weakly, whether the (two or more) goods are perfect substitutes or perfect complements, or whether the indifference curves touch the axes
• You are responsible for all the material we covered on labour supply
• You should be prepared to solve the labour supply problem with or without taxes, with any preferences, with any number of consumption goods.
• You are responsible for all the material we covered on intertemporal consumption
• You should be prepared to solve the intertemporal consumption problem with more than two periods and with any preferences.
• You are responsible for being able to solve problems if there is any finite number of goods (for example, where there are n inputs in factor demand), or finite number of options (for example, when there are n options in the case of externalities),or finite number of individuals (for example, when there are n individuals in the case of exchange economies or externalities), or finite number of markets (for example, when there is an oligopolist who faces multiple output markets or a monopsonist who faces multiple labor markets) or finite number of plants (for example, when a firm faces multiple plants) and you are responsible for being able to solve problems that have any combinations of the above (for example, multiple firms who compete in multiple markets with multiple inputs using multiple plants)
• You are responsible for being able to solve problems whether the preferences over multiple goods satisfy all assumptions strictly or not, whether the indifference curves touch the axes or not, and whether the finite number of goods are perfect substitutes or perfect complements in addition to when the preferences satisfy all assumptions strictly

Announcement 3 of 5 regarding Final Exam: Tips on how to study

• First study a chapter, then test yourself with some of the questions from past tests regarding this chapter
• When you compare your answer with that given in the solutions you can then decide whether you need to study further or whether you can continue to the next chapter
• If your answers do not agree with the solutions provided, figure out why and study further on that topic, then test yourself again using past test questions.
• If your answers do agree with the solutions provided, then go on to the next chapter and test yourself on questions from past tests regarding this chapter
• Once you have finished each chapter, test yourself further by trying some of the final exam questions.
• If your answers do not agree with those given then you need to study further
• If your answers agree with those given then you are ready to take a practice exam
• Remember that new questions may arise as new material may be taught so that you are responsible for questions that have never been asked in any previous test or final exam
• Try formulating and answering your own questions.

Announcement 4 of 5 regarding Final Exam: Tips on how to write the final exam

• Remain Calm
• Do not panic because your mind is blank, Instead, relax and stay calm until the panic passes
• Budget your time
• Begin questions or parts of questions that you know how to answer
• If you get stuck on a question or part then go to another question or part that you do know how to solve
• If you cannot answer the question as posed in general then try to obtain part marks for answering a simpler version (say n=2 or n=3 rather than general n for example)
• Explain your reasoning in your answers
• Try explaining what you would do generally then do it specifically for the question at hand
• Remember that new questions may arise as new material may be taught so that you may need to think about how to do a question that has never been asked in any previous test or final exam

Announcement 5 of 5 regarding Final Exam: Office Hours

• Please bring any relevant expanded lecture notes, questions and solutions to office hours
• Maha Nadeem Monday 17 December 10a.m. - 3:00 p.m. Innovation Complex KN3258
• CP Wednesday 19 December 10a.m. - 4:00 p.m.; Thursday 20 December 10-noon: Innovation Complex KN 3222

Announcement regarding Test 4

• Test #4 will be held in our regular Tuesday classroom IB385 on 27 November 2018
• There are NO AIDS ALLOWED.
• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during tests.
• Unauthorized aids include (but are not limited to) cell phones, Electronic Dictionaries and IPods.
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone.
• You are responsible for all the material covered since the last test (including examples and questions) in the text book, study guide and lectures
• Topics since last test: factor demand, labour supply, intertemporal consumption, externalities, and public goods
• You are responsible for all the material covered since the last test (including examples and questions) in the text book, study guide and lectures
• Topics since last test: factor demand, labour supply, intertemporal consumption, externalities, and public goods
• You are responsible for being able to solve the problems if there are two or more goods or factors or options or individuals
• The list of sub-topics is long but includes, at a minimum, the topics that follow.
• Know how to find profit-maximizing factor bundle in the presence of two or more factors and in the presence of multiple groups of a factor.
• Know how to solve the problem whether the preferences or production function satisfy all assumptions strictly or weakly including when the isoquants touch the axes or whether the (two or more) goods are perfect substitutes or perfect complements
• Know how to find the profit-maximizing factor bundle whether the factors are perfect substitutes or perfect complements or the production function satisfies all assumptions strictly or weakly including when the isoquants touch the axes.
• Know how to find the profit-maximizing factor bundle whether the firm is competitive, monopolistic or olgopolistic in output and whether the firm is competitive, monopsonistic or oligopsonistic in the inputs including whether the firm is monopsonistic in an input that has multiple groups (as would happen with two groups of workers)
• Know how to obtain the optimal leisure consumption bundle in the presence or absence of multiple goods and a piecewise linear wage schedule (as would happen with a progressive income tax for example)
• Know how to find the labour supply when a worker who maximizes utility may treat leisure and consumption as perfect substitutes or perfect complements or may have preferences over each which satisfy all assumptions strictly or weakly including when the indifference curves touch the axes.
• Know how to find labour supply in the presence of two or more consumptions goods as well as hours of leisure.
• Know how to obtain the optimal intertemporal consumption bundle in the presence of two or more periods
• Know how to find utility maximizing consumption over two or more periods whether the consumption across periods are perfect substitutes or perfect complements or preferences over each that satisfy all assumptions strictly or weakly including when the indifference curves touch the axes.
• Know how to find the laissez-faire outcome and the efficient outcome in the presence of externalities in a variety of situations
• Know the relationship between the efficient outcome and the profit-maximizing outcome when property rights are assigned in the presence of externalities
• In the presence of externalities know how to use Coase's Theorem so that the efficient levels can be achieved
• Know how to calculate the Nash equilibrium or laissez-faire public good production levels in the presence of N individuals with identical tastes and identical production possibility frontiers whether N is a given integer or represents an integer
• Know how to obtain the Nash equilibrium and the efficient outcome in the presence of a public good with any number of symmetric individuals or with two asymmetric individuals (who may differ due to preferences or due to PPF's)
• Know how to obtain the best response of one individual to another's public good production.
• Know how to calculate the Nash equilibrium or laissez-faire public good production levels in the presence of N individuals with identical tastes and identical production possibility frontiers
• Know the relationship between the efficient level of the public good and the Nash equilibrium level
• Know how the efficient public good levels can be achieved
• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during tests.
• Unauthorized aids include (but are not limited to) cell phones, Electronic Dictionaries, devices with access to stored memory or the Internet, and IPods.
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone or any other device with memory or ability to access the internet.

Announcement regarding Test 3

• Test #3 will be held in our regular Tuesday classroom IB385 on 13 November 2018.
• There are NO AIDS ALLOWED.
• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during tests.
• Unauthorized aids include (but are not limited to) cell phones, Electronic Dictionaries and IPods.
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone.
• You are responsible for all the material we covered since test #2 up to and excluding factor demand
• This material relies on the mastery of previous material
• You are responsible for all the material we covered on perfect competition, efficiency, exchange economies, elasticity, monopoly, and oligopoly
• You are responsible for all the material covered on these topics (including examples and questions) in the text book, study guide and lectures
• The list of sub-topics is long but includes, at a minimum, the topics that follow.
• Know how a perfectly competitive firm maximizes profits
• Know how to find the core and the contract curve for an exchange economy with 2 or more individuals
• Know how to find the competitive equilibrium exchange rate and allocation for any combination of preferences in an exchange economy with 2 or more individuals
• Know how to infer whether a given exchange rate or allocation is a competitive outcome in an exchange economy with 2 or more individuals
• Know how to infer what effect a change in endowments or preferences would have on the competititve equilibrium exchange rate and allocation in an exchange economy with 2 or more individuals
• Know how to find the profit-maximizing price and quantity for a regular monopoly
• Know how to find the profit-maximizing prices for a monopolist who faces segmented markets and/or who owns multiple plants
• Know how to compare the price-discriminating profit-maximizing monopoly outcome with the per-unit single price profit-maximizing monopoly outcome in the absence of price discrimination
• Know how to infer the market demand elasticities with respect to price for a profit-maximizing monopolist and to use the elasticities to provide and explanation for the difference in prices across segmented markets.
• Know how to find a Nash equilibrium in the Cournot (n firms in each of 2 or 3 types of firms), and Stackelberg (2 or 3 or more firms) models or a combination of the two
• Know how to compare the Cournot outcome with the competitive outcome.
• Know how to find a Stackelberg equilibrium in the presence of more than two firms and compare it to the Cournot and efficient outcomes.
• Know how to solve for the Cournot equilibrium prices and quantities for n firms n which firms may face multiple plants
• Know how to solve for the Stackelberg equilibrium for up to and including three or more firms in which firms may face multiple plants
• Understand efficiency in the context of exchange economies, perfect competition, monopoly and oligopoly.

Announcement regarding Test 2

• Test #2 will be held in our regular Tuesday classroom IB385 on 23 October 2018.
• There are NO AIDS ALLOWED.
• You are responsible for ALL the material in chapters 7,9-10,18 of the textbook PLUS the material on elasticity (on pages 158-165 in edition 10 and on pages 163-169 in edition 11) in chapter 5 of the textbook.
• You are responsible for ALL the material in lectures 7-11 covering and expanding the topics from the above chapters.
• Note that some of the material from the first test is equivalent to that on the second test.
• In particular, the material includes (but is not limited to) understanding the following
• (1) The expected value and the expected utility of a gamble
• (2) The relationship between the attitude to risk and both the Bernouilli utility over wealth and the Neumann Morgenstern utility indifference curves
• (3) How to find a consumer's expected-utility-maximizing bundle and how to depict it in a graph
• (4) How to obtain the comparative static effect of a change in the probability of an accident on the fair odds line (or the zero profit line) and how to depict this change in a graph
• (5) How to obtain the comparative static effect of a change in the probability of an accident on the MRS along the consumer's von Neumann Morgenstern utility indifference curves and how to depict this change in a graph
• (6) How to obtain the comparative static effect of a change in the probability of an accident on the fair price of full insurance and how to depict this change in a graph.
• (7) How to obtain the comparative static effect of a change in the probability of an accident on the consumer's maximum willingness to avoid risk and how to depict this change in a graph.
• (8) How to determine the gamble in state space (pair of wealth levels (W_1,W_2)) associated with an insurance contract (price and payment pair, (b,Y))
• (9) How to determine the insurance contract (price and payment pair, (b,Y)) associated with a gamble in state space (pair of wealth levels (W_1,W_2))
• (10) How to determine the competitive insurance contract (price and payment or gamble in state space) or whether any particular insurance bundle is offered in a competitive insurance industry in the presence of two types of consumer when the consumer may differ with respect to probability of accident and/or attitude toward risk and how to depict this change in a graph
• (11) How to determine whether a production function exhibits IRTS, CRTS, DRTS
• (12) How to determine whether a function is homogeneous of some degree as well as its degree of homogeneity if it is homogeneous
• (13) How to determine whether a function is homothetic
• (14) How to obtain the elasticity of substitution along an isoquant.
• (15a) How to derive the firm's derived demand for input as quantity varies given input prices and a given degree of homogeneity of the production function
• (15b) How to obtain the firm's derived demand for input from the firm's cost function
• (15c) How to obtain the firm's derived demand for input and derive the firm's cost function when there are two or more inputs and (i) the production function is "nice" or (ii) the goods are perfect substitutes, or (iii) the goods are perfect complements or (iv) the production function is strictly quasiconcave but its indifference curves touch the axes.
• (16) How to recover information (shape, homogeneity, formula, ...) about the production function from the cost function
• (17) How to recover information (shape, homogeneity, formula, ...) about the cost function from the production function
• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during tests.
• Unauthorized aids include (but are not limited to) cell phones, Electronic Dictionaries, devices with access to stored memory or the Internet, and IPods.
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone or any other device with memory or ability to access the internet.

Announcement regarding Test 1

• Test #1 will be held in our regular Tuesday classroom IB385 on 25 September 2018.
• There are NO AIDS ALLOWED.
• You are responsible for ALL the material in chapters 1-5 of the textbook EXCEPT for the material in chapter 2 of the textbook from Homogeneous functions onwards to the end of the chapter (on pages 53-73 of edition 10 or pages 55-77 of edition 11) and the material on elasticity in chapter 5 of the textbook (on pages 158-165 of edition 10 or pages 163-169 pf edition 11).
• You are responsible for ALL the material in the lectures covering and expanding the topics from chapters 1-5.
• In particular, the material includes (but is not limited to) understanding how to show that a function is concave or quasiconcave and how to use the implicit function theorem to find the shape of an indifference curve (for example, you should be able to show that an indifference curve is decreasing and convex using this theorem).
• In particular, the material includes (but is not limited to) understanding how to solve the consumer's primal constrained utility maximization problem and dual expenditure minimization problem when there are TWO OR MORE goods and the goods are perfect substitutes, perfect complements, the indifference curves touch the axes, or the preferences satisfy all assumptions strictly or weakly.
• In particular, the material includes (but is not limited to) understanding the value function, the expenditure function, the Marshallian demand, the Hicksian demand, the relationships among the four when there are TWO OR MORE goods and assumptions on preferences are satisfied weakly or strictly including when the indifference curves may touch the axes.
• In particular, the material includes (but is not limited to) understanding how to caculate the change in consumer surplus and how to use the expenditure function to calculate the compensating variation and the equivalent variation of a price change when there are TWO OR MORE goods and assumptions on preferences are satisfied weakly or strictly including when the indifference curves may touch the axes.
• Remember that it is an academic offence simply to possess unauthorized aids of ANY kind during tests.
• Unauthorized aids include (but are not limited to) cell phones, Electronic Dictionaries, devices with access to stored memory or the Internet, and IPods.
• Please have a simple ordinary watch or travel clock for time-keeping purposes and NOT a cell phone or any other device with memory or ability to access the internet.

How to Access Lecture Notes and Past Test Questions

• Please see the course web page on Canvas to find out how to access the lecture notes and past tests below.

Past Test Questions No Guarantees Regarding Coverage

• Remember that new questions may arise as new material may be taught or emphasized so that you are responsible for questions that have never been asked in any previous test
• The questions below are grouped by topic
• Try the questions without looking at the solutions. If you can't solve them, then you are missing something.
• Understanding the solutions is not the same as understanding the problem.
• Trying the problems is a good way to test your understanding with a "surprise" set of questions.
• Please let me know whether there are any errors. Thanks.
• Questions from Past Tests on Preferences, Budget Lines, Marshallian Demand, Hicksian Demand, Consumer Welfare (a pdf file)
• Questions from Past Tests on Uncertainty, Insurance, Moral Hazard and Adverse Selection, Elasticity, Production, Cost and possibly Profit-Maximization (a pdf file)
• Questions from Past Tests on Exchange Economies, Efficiency, Monopoly and Oligopoly (a pdf file)
• Questions from Past Tests on Factor Demand, Labour Supply, Intertemporal Consumption, Externalities and Public Goods

Expanded Solutions to Previous Tests for those with Adobe: No guarantees regarding solutions or coverage

• The solutions are exhaustive in that multiple methods are provided
• Only one method is required in an answer to a test question
• The solutions are expanded in that the answer is explained from first principles
• If you answer a question using first principles then you will always receive part marks for a correct principles even if your final answer is incorrect
• This year's test may have material that wasn't covered in the past.
• Try the problems. If you can't solve them, then you are missing something.
• Understanding the solutions is not the same as understanding the problem
• Please let me know whether there are any errors. Thanks.

• Solutions to Eco 206 test #1 from 2018-2019 (a pdf file)
• Solutions to Eco 206 test #1 from 2017-2018 (a pdf file)
• Solutions to Eco 206 test #1 from 2016-2017 (a pdf file)
• Solutions to Eco 206 test #1 from 2015-2016 (a pdf file)
• Solutions to Eco 206 test #1 from 2013-2014(a pdf file)
• Solutions to Eco 206 test #1 from 2012-2013 (a pdf file)
• Solutions to Eco 206 test #1 from 2011-2012 (a pdf file)
• Solutions to Eco 206 test #1 from 2010-2011 (a pdf file)
• Solutions to Eco 206 test #1 from 2009-2010 (a pdf file)
• Solutions to Eco 206 test #1 from 2008-2009 (a pdf file)
• Solutions to Eco 206 test #1 from 2006-2007 (a pdf file)
• Solutions to Eco 206 test #1 from 2005-2006 (a pdf file)
• Solutions to Eco 206 test #1 from 2004-2005 (a pdf file)
• Solutions to Eco 206 test #1 from 2002-2003 (a pdf file)
• Solutions to Eco 206 test #1 from 2001-2002 (a pdf file)
• Solutions to Eco 206 test #1 from 2000-2001 (a pdf file)
• Solutions to Eco 206 test #1 from 1998-99 (a pdf file)
• Solutions to Eco 206 test #1 from 1997-98 (a pdf file)
• Solutions to Eco 206 test #1 from 1996-97 (a pdf file)
• Solutions to Eco 206 test #1 from 1995-96 (a pdf file)
• Solutions to Eco 206 test #2 from 2018-2019 (a pdf file)
• Solutions to Eco 206 test #2 from 2017-2018 (a pdf file)
• Solutions to Eco 206 test #2 from 2016-2017 (a pdf file)
• Solutions to Eco 206 test #2 from 2015-2016 (a pdf file)
• Solutions to Eco 206 test #2 from 2013-2014 (a pdf file)
• Solutions to Eco 206 test #2 from 2012-2013 (a pdf file)
• Solutions to Eco 206 test #2 from 2011-2012 (a pdf file)
• Solutions to Eco 206 test #2 from 2010-2011 (a pdf file)
• Solutions to Eco 206 test #2 from 2009-2010 (a pdf file)
• Solutions to Eco 206 test #2 from 2008-2009 (a pdf file)
• Solutions to Eco 206 test #2 from 2006-2007 (a pdf file)
• Solutions to Eco 206 test #2 from 2005-2006 (a pdf file)
• Solutions to Eco 206 test #2 from 2004-2005 (a pdf file)
• Solutions to Eco 206 test #2 from 2002-2003 (a pdf file)
• Solutions to Eco 206 test #2 from 2001-2002 (a pdf file)
• Solutions to Eco 206 test #2 from 2000-2001 (a pdf file)
• Solutions to Eco 206 test #2 from 1998-99 (a pdf file)
• Solutions to Eco 206 test #2 from 1997-98 (a pdf file)
• Solutions to Eco 206 test #2 from 1996-97 (a pdf file)
• Solutions to Eco 206 test #2 from 1995-96 (a pdf file)
• Solutions to Eco 206 test #3 from 2018-2019 (a pdf file)
• Solutions to Eco 206 test #3 from 2017-2018 (a pdf file)
• Solutions to Eco 206 test #3 from 2016-2017 (a pdf file)
• Solutions to Eco 206 test #3 from 2015-2016 (a pdf file)
• Solutions to Eco 206 test #3 from 2013-2014 (a pdf file)
• Solutions to Eco 206 test #3 from 2012-2013 (a pdf file)<
• Solutions to Eco 206 test #3 from 2011-2012 (a pdf file)<
• Solutions to Eco 206 test #3 from 2010-2011 (a pdf file)
• Solutions to Eco 206 test #3 from 2009-2010 (a pdf file)
• Solutions to Eco 206 test #3 from 2008-2009 (a pdf file)
• Solutions to Eco 206 test #3 from 2006-2007 (a pdf file)
• Solutions to Eco 206 test #3 from 2005-2006 (a pdf file)
• Solutions to Eco 206 test #3 from 2004-2005 (a pdf file)
• Solutions to Eco 206 test #3 from 1999-2000 (a pdf file)
• Solutions to Eco 206 test #3 from 1998-99 (a pdf file)
• Solutions to Eco 206 test #3 from 1997-98 (a pdf file)
• Solutions to Eco 206 test #3 from 1996-97 (a pdf file)
• Solutions to Eco 206 test #3 from 1995-96 (a pdf file)
• Solutions to Eco 206 test #4 from 2018-2019 (a pdf file)
• Solutions to Eco 206 test #4 from 2017-2018 (a pdf file)
• Solutions to Eco 206 test #4 from 2016-2017 (a pdf file)
• Solutions to Eco 206 test #4 from 2015-2016 (a pdf file)
• Solutions to Eco 206 test #4 from 2013-2014 (a pdf file)
• Solutions to Eco 206 test #4 from 2012-2013 (a pdf file)
• Solutions to Eco 206 test #4 from 2011-2012 (a pdf file)
• Solutions to Eco 206 test #4 from 2010-2011 (a pdf file)
• Solutions to Eco 206 test #4 from 2009-2010 (a pdf file)
• Solutions to Eco 206 test #4 from 2008-2009 (a pdf file)
• Solutions to Eco 206 test #4 from 2006-2007 (a pdf file)
• Solutions to Eco 206 test #4 from 2005-2006 (a pdf file)
• Solutions to Eco 206 test #4 from 2004-2005 (a pdf file)
• Solutions to Eco 206 test #4 from 1999-2000 (a pdf file)
• Solutions to Eco 206 test #4 from 1996-1997 (a pdf file)
• Solutions to Eco 206 test #4 from 1995-1996 (a pdf file)
• Eco 206 test #4 from 1996-97 (a pdf file)
• Eco 206 test #4 from 1995-96 (a pdf file)

Solution to Previous Final Exams for those with Adobe: Please note that solutions are not rigorous and may be incorrect

• Remember that new questions may arise as new material may be taught or emphasized so that you are responsible for questions that have never been asked in any previous exam
• Please let me know whether there are any errors. Thanks.

• Solutions to Eco 206 final exam from 2017-2018 (a pdf file)
• Solutions to Eco 206 final exam from 2016-2017 (a pdf file)
• Solutions to Eco 206 final exam from 2015-2016 (a pdf file)
• Solutions to Eco 206 final exam from 2013-2014 (a pdf file)
• Solutions to Eco 206 final exam from 2012-2013 (a pdf file)
• Solutions to Eco 206 final exam from 2011-2012 (a pdf file)
• Solutions to Eco 206 final exam from 2010-2011 (a pdf file)
• Solutions to Eco 206 final exam from 2009-2010 (a pdf file)
• Solutions to Eco 206 final exam from 2008-2009 (a pdf file)
• Solutions to Eco 206 final exam from 2006-2007 (a pdf file)
• Solutions to Eco 206 final exam from 2005-2006 (a pdf file)
• Solutions to Eco 206 final exam from 2004-2005 (a pdf file)
• Solutions to Eco 206 final exam from 2002-2003 (a pdf file)
• Solutions to Eco 206 final exam from 2001-2002 (a pdf file)
• Half of Eco 206 final exam questions from 2000-2001
• Solutions (but not the questions) to Half of Eco 206 final exam from 2000-2001 (a pdf file)
• Solutions to Eco 206 final exam from 1999-2000 (a pdf file)
• Eco 206 final exam from 1996-97 (a pdf file)
• Solutions to Eco 206 final exam from 1995-96 (a pdf file)

Expanded Lectures (not guaranteed to be correct or complete)

• Please let me know whether there are any errors. Thanks.
• ECO 206 Math Review
• ECO 206 Preferences
• ECO 206 Budget Sets
• ECO 206 Marshallian Demand
• ECO 206 Hicksian Demand
• ECO 206 Consumer Welfare
• ECO 206 Review for Test #1 Material
• ECO 206 Uncertainty
• ECO 206 Insurance
• ECO 206 Moral Hazard and Adverse Selection
• ECO 206 Production
• ECO 206 Elasticity
• ECO 206 Cost
• ECO 206 Review for Test #2 Material
• ECO 206 Exchange Economies
• ECO 206 Perfect Competition
• ECO 206 Efficiency
• ECO 206 Monopoly
• ECO 206 Oligopoly
• ECO 206 Review for Test #3 Material
• ECO 206 Factor Demand
• ECO 206 Externalitites and Public Goods
• ECO 206 Labour Supply
• ECO 206 Intertemporal Consumption
• ECO 206 Review for Test #4 Material
• ECO 206 Review for course