MICROECONOMIA

INDIVIDUAL PROBLEMS SET
TOPIC 1
YEAR 2011/12
PRESENTATION NORMS
• Deadline: October 23 at 20.00.
• All the problems that do not contain graphics or mathematical reasoning should be written in Microsoft Word (or any similar word processor) as follows: font Arial, size 12, line spacing 1.5 and justified text. The rest of the problems can be written "by hand", although it is recommended tostart making the effort to draw graphs and write mathematical reasoning using computer programs.
• In any case problems will be presented through the virtual classroom in pdf format.
• Only 10% of the presented set of problems will be corrected, chosen randomly.
• If the mark obtained by a student in a set of individual problems is less than 4, the student is not entitled to sit for the exams ofthe course.
• Students who do not present the set of problems in the pre-specified terms will not entitled to sit for the exams of the course.
PROBLEMS
The language in which you should answer is specified in each problem.
1.- Starting from the provided readings concerning soviet communism and capitalism, present the basic characteristics of these systems. (The texts are in the folder of attachedmaterial to this set of individual problems).
Maximum: half page for each system. Language: SPANISH
2.- Provide a clear and concise definition of the following concepts: economic activity, economic system, market failure, model, contrasting process and opportunity cost.
Maximum: 75 words for each definition. Language: SPANISH
3.- Briefly explain the following group of concepts and clearlyhighlight the differences between them.
Group 1: Microeconomics, Macroeconomics. Group 2: Equity, Equality. Group 3: Positive Economics,
Normative Economics. Group 4: Applied Economics, Economic Theory. Group 4: Efficient, Effective.
Group 5: Induction, Deduction.
Maximum: 125 words for each group of concepts. Language: SPANISH
4.- Starting from a detailed reading of the first chapter of thebook “La Economía del Sector Público”, written by Joseph E. Stiglitz and titled “El Sector Público en una Economía Mixta”, solve questions/problems 1, 2 and 3 on pages 32-34. (The text is in the folder of attached material to this set of individual problems).
Language: SPANISH
5.- Suppose that the production possibility frontier of an economy is given by the equation (X+2)2+(Y+2)2=400, for X≥0 andY≥0. Draw a graph to represent it. How is the opportunity cost of X in terms of Y, invariable, increasing or decreasing? Why? Provide the calculation of the opportunity cost of X, in terms of Y, in two different points of the production possibility frontier.
6.- Solve problem 5 for the following production possibility frontiers.
a) Y=200-5X, for X≥0 and Y≥0.
b) Y=-X2-8X+84, for X≥0 and Y≥0.c) (X-8)2+(Y-8)2=64, for 0≤X≤8 and 0≤Y≤8.
Language: SPANISH
7.- Consider an economy described by the production possibility frontier 16X2+25Y2=400. Individuals want to consume the same amount of the two goods, X and Y.
a) How much of each good must be produced to achieve this goal efficiently? Mark this goods combination on the graph of the production possibility frontier.
b) Suppose thatthis country open up international trade links and it decides to produce only good X. If one unit of X can be exchanged by 3 units of Y in the international market, what would be its consumption possibility frontier of goods X and Y? What would be the final choice under the wishes of the individuals expressed in the statement of the problem? Are there any costs/benefits in establishing theinternational trade in these terms?
c) How would you measure the costs/benefits to this country of the international trade ban?
Language: SPANISH
8.- Write one sentence in English with each of the following words or expressions.
a) Economy b) Economic c) Economics
d) To Resume e) Hypotheses f)Parabola
g) Parable h) Estate i)State
j) Slope k) Transaction spillover l) Keeping up with the Joneses
m)...