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The relationship between Y and X is given by Yi=alpha+beta xi+nui where nui follows classical assumptions. Consider the following set of data and answer the questions. Y 1 2 3 4 5 X 8 6 9 12 10 a) Estimate parameters of the model from the following data by using OLS method. b) What is the estimate of error variance in the above case? c) Find the value of R square for the above data.
Explain why Consumer Preferences may influence the own price elasticity of demand for a commodity.
List the three most important expenditure programs of the federal government. How do these differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchas..
There are two identical firms in this economy with constant marginal costs equal to 1 and no fixed costs. Assume that firms set prices and follow a Bertrand model to do so.
Describe if the demand for the following products is price elastic or price inelastic, and explain your answer.
the demand for Internet advertising was declining at the similar time which the number of Internet sites accepting advertising was increasing
Woody's utility function is U(C, R)= C- (12-R)^2, where C is his consumption and R is the amount of leisure he has per day. He has 16 hours a day to divide between work and leisure. He has an income of 20$ a day from non-labour sources. If Woody can ..
How does a negative externality change the supply and demand equilibrium point? Draw the graph with and without the negative externality and explain what happens to the supply ? ( Counpastion externality )
Problem associated with fourth video: demand with perfect substitutes Consider the following utility function u(x1, x2) = 2x1 + x2. Calculate the MRS for this utility function. Does it depend on x1 and x2. (b) Given an income m and prices p1 and p2 d..
Steps that a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept
Red Ball Production's taxable income in 2005 was $500,000. Illustrate what amount of state income tax did Red Ball Productions owe.
What is the current household saving rate in the United States? What do you think of this saving rate? Too high or low?
Which firm would you expect to make the lowest profits, other things equal?
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