Structure When to sell an asset? -rate-of -return- Arbitrage Taxation of asset returns Depletable resources Financial intermediaries
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Structure Describe budget constraint -Algebra Graph Describe changes in budget constraint Government programs and budget constraints on- -linear budget lines
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Structure Rational constrained choice Computing ordinary demands Interior solution内在解) Corner solution(角点解) “Kinky\ solution Example: Choosing taxes
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Properties of Demand Functions Comparative statics analysis(比较 静态分析) of ordinary demand functions the study of how ordinary demands *(p,P2,y) and x2*(p1,P2,y) change as prices p1, P2 and income y change
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Structure Market supply Short-run- supply and equilibrium Long -run- supply and equilibrium Long -run- implications for taxation Fixed inputs and economic rent(经济租金)
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Structure Present and future values Intertemporal budget constraint Preferences for intertemporal consumption Intertemporal choice Comparative statics Valuing securities
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Structure Endowments(禀赋) Budget constraints with endowments Net demands -Price offer curve Example: Labor supply Comparative statics Slutsky equation revisited
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Exchange Economies (revisited) No production, only endowments,so no description of how resources are converted to consumables. General equilibrium: all markets clear simultaneously. 1st and 2nd Fundamental Theorems of Welfare Economics
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Structure Money equivalent of utility gains to trade Consumer's' surplus Changes in consumer's' surplus Compensating and equivalent variations Producer's' surplus
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一、1(5分)当边际产量递减时,规模报酬也一定递减
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