ECON 312: Midterm 1 Preparation Guide
Aniruddha Ghosh
Spring 2025
1. Overview
The ECON 312 midterm will assess your understanding of microeconomic theory and models
covered in Lectures 1 to 6. This includes concepts from consumer theory (review of ECON
311), risk and uncertainty, and strategic behavior in games.
• Format: Format will be based on the practice exam.
• Topics: Lectures 1–6 (Slides available on Canvas under Files section)
2. Key Topics to Review (but do read the slides)
1. Consumer Theory (Review from ECON 311)
• Budget sets and preferences
• Utility maximization and Marshallian demand
• Lagrangean maximization
2. Risk and Uncertainty
• Expected utility framework
• Risk aversion, risk-loving, and risk-neutral behavior
• Insurance and diversification
3. Game Theory (up to mixed strategies)
• Normal form games: players, strategies, payoffs
• Dominant strategies and dominated strategies
• Nash equilibrium (pure and mixed strategy)
• Best response functions
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ECON 312 Midterm Prep
Spring 2025
3. Study Strategies
1. Review Lecture Slides and Notes: Pay special attention to the structure of economic problems and how they were solved in class, in practice/aplia problems, and
practice exam
2. Practice with Practice Exam: Many midterm questions will be structurally similar.
3. Draw Diagrams: Be comfortable sketching indifference curves, budget lines, and best
response maps.
4. Understand Formulas Conceptually: There might be a formula sheet, but you
should know how to apply and interpret them.
5. Discuss with Peers: Talking through tricky game theory examples can solidify your
intuition.
4. Exam Tips
• Label all graphs and be clear in justifying reasoning in short answers.
• Double check calculations in expected utility and mixed strategies.
• Keep your answers structured: define terms, show steps, conclude clearly.
• Be very precise with the definitions.
• You are allowed one sheet for notes.
5. Office Hours and Support
• Instructor Extra Office Hours: Friday 1–3 PM
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