2. Define the following: "model of production"; "exogenous parameters", "endogenous variables".

3. Define the following: "the period framework", "technique of production". "technology", "constant returns to scale"

4. Describe a single technique of production schematically in terms of (i) levels and (ii) input-output coefficients.

5. Show the equations for the labor and capital input using the technique of production.

6. Describe the three agents in the economy and identify their roles.

7. Show in a graph two available techniques with different slopes. Identify the switchpoint and the technique chosen above and below that point.

8. Show in a graph a dominated technique of production in relation to the dominating technique(s).

9. What is the efficiency frontier? Draw this in a graph with at least three techniques.

10. Define the production function and write general equations for the extensive and intensive production functions.

11. Show in a general graph how the wage closes the system with respect to the profit maximizing technique.

12. Write the equation for the Leontief production function. Let the Leontief production function be given by K = 9$ : N = 1N X = 3$.

13. Find labor productivity (x), capital productivity (), and the capital-labor ratio (k).

14. Identify the unit isoquant and draw the Leontief economy in a three graph model (see figure 3.5, p. 58). Let the Cobb-Douglas production function be given by X = AK N 1-

15. Solve the general equation to find the marginal product of labor, the marginal product of capital and the technical rate of substitution. Let A = 5$ and =

16. Find the unit isoquant using equal labor and capital inputs of 0.05, 0.1, 0.15,... up to 0.5 and identify the three different techniques.

17. Find labor productivity (x), capital productivity (), and the capital-labor ratio (k) for the three techniques.

18. Identify the unit isoquant and draw the Leontief economy in a three graph model (see figure 3.6, p. 60).

19. Show in general (i) the growth rate for pure labor saving technical change and draw in a graph; (ii) the growth rate for pure capital saving technical change and draw in a graph, and (iii) the graph for the case of factor saving technical change when gx = g .