Peter J Wilcoxen > PAI 723 Economics for Public Decisions

Five Minute Exercises

In one of my other classes, I give out one of these exercises each day in class and give people 5-7 minutes to solve it.  It doesn't count toward their final grade -- it's just an opportunity to practice doing problems with limited time, which helps people avoid freezing up on exams.  Although I'm not giving them out in Economics for Public Decisions, you might find them useful to do on your own. Each entry is a link to a page with the original problem and the final numerical answer.   Entries marked with (+) have multiple short calculations based on a single set of information and some also have hints about the answers.  If you have questions about how to do any of them, please drop me a note or stop by my office.

Demand, Supply and Markets

Finding a Market Equilibrium  
Finding a Market Equilibrium with a Tax  
Finding a Market Equilibrium with a Subsidy  
Calculating Market Demand  
Market Equilibrium with Multiple Sellers  
Market Equilibrium with Multiple Buyers  
Computing Deadweight Loss  
Using Elasticities to Analyze a Tax  
Efficiency with a Positive Externality  
Efficiency with a Positive Network Externality  
Cost of a Subsidy  
Effect of a Subsidy on New Buyers  
Subsidy Needed to Achieve a Quantity Target (+)  
Equilibrium with a Tariff (+)  
Equilibrium with a Supply Quota (+)  
Effect of a Minimum Wage (+)  
Effect of a Price Ceiling (+)  

Household Choice

Price Change with Perfect Complements Preferences  
Price Change with Cobb-Douglas Preferences  
Compensating Variation with Cobb-Douglas Preferences  
Income Effect with Cobb-Douglas Preferences  
Substitution Effect with Cobb-Douglas Preferences  
Taxes and Perfect Complements Preferences  
Compensating Variation with Perfect Complements Preferences  
Policy Design with Cobb-Douglas Preferences  
Two-Period Intertemporal Choice with Perfect Complements Preferences  
Two-Period Intertemporal Choice with Cobb-Douglas Preferences  

Cost Benefit Analysis

Present Value of a Stream of Payments  
Present Value of a Delayed Infinite Stream  
Net Present Value of a Project with Delayed Benefits  
Net Present Value with Delayed Costs  
Net Present Value of a Project with Streams of Costs and Benefits  
Present Value of a Long Finite Stream  
Net Present Value  
Expected Value  
Expected Value and Fair Insurance  
Expected Net Present Value  
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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 08/18/2016