create your own potential exam questions.
Specifically, this assignment asks you to create one original utility maximization short answer question and
then provide a solution (with an explanation and the work to solve it). You can choose any type of utility
function, but your question should look something like this:
Example
[Person’s name] has a utility function of the following form, [insert utility function], where x is [insert good] and
y is [insert good]. [Person’s name]’s income is [insert income] and the price of x is [insert price of x] and the price
of y is [insert price of y].
a) Find [Person’s name]’s optimal bundle.
b) Graph the optimal bundle, including a budget constraint and the indifference curve associated with the
optimal bundle.
[Provide explanation and solution in whatever format you would like]
The best place to look for examples of what questions should generally look like are the Chapter 4 Practice
Problems.
The format of your assignment is open-ended, as long as you clearly communicate how to reach the solution to
the question you create. You can write it out on paper (this should include a written explanation about the process,
not just the math), make a presentation, record a video, etc. Feel free to be creative and you can post your
questions on Piazza so everyone can use the questions to study for the exam.
