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In a hypothetical data set with 400 adults in the New York metropolitan area, 250 own their homes and 150 do not. Of the home owners, 245 own a car. Of the 150 non-home-owners, only 25 own a car. A researcher runs a regression of expenditures on movie entertainment on the dummy variable OwnHome and OwnCar. She finds that at the 5 percent significance level she cannot reject the two individual null hypotheses that the parameters multiplying these coefficients are zero, but that she can decisively reject the null hypothesis that both parameters are jointly equal to zero (P-value = 0.2%). Can you explain why she might have obtained such a result?
Carl is deciding whether or not to make a farm. If he makes a farm, he will earn a $50,000 grant from the government. For every 100 head of cattle that he increase and sells.
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $15 per hour and capital is rented at $8 per hour. If the marginal product of labor is 45 units of output per hour and the marginal product of ..
Identify the four major tools of monetary policy. b) Describe how changes in the Fed’s major policy tools lead to [1] expansionary and [2] restrictive or contraction monetary policies. Define the four basic types of trade barriers. b) Who gains and w..
Suppose you were the manager of a bank that raised most of its funds from short- term variable-rate deposits and used these funds to make fixed-rate mortgage loans. Should you be more concerned about rises or falls in short-term interest rates? ..
Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource differences. What are some examples of goods that the U.S. has comparative advantage in producing
Adam Smith wrote of, "The Invisible Hand" in economics. Give a critical evaluation of the way in which this concept has been affected by the theories of Maynard Keynes, Karl Marx, Milton Friedman and political expediency and/or dogma.
Formulate an LP model that maximizes profit from the sale of produce while meeting the constraints outlined in this exercise including the minimum consumption constraints. Solve the exercise using Solver.
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate.
A trend analysis for a farm business could be performed using what kind of data for comparison?
What is Malthus’ theory of effective demand? What is Malthus’ solution to the problem of general gluts? Describe how Ricardo and Malthus came to different conclusions concerning the Corn Laws.
Your firm sells a very popular children's game. As the manager, you have received information that another firm is thinking about introducing a similar game. You have the following facts:
do economic profits attract new firms into an industry? how do economic profits attract new firms
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