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Some individuals have an inherent distrust of quantitative analysis because they think that statistics can be manipulated to provide a desired interpretation. Regression analysis pretains to knowing about an error term in the regression equation. What would those individuals think if they knew that econometrics is based on an error term?
Do you have a distrust of quantitative analysis? For example, the economists in the Obama administration suggested that the stimulus package that they recommended in early 2008 would keep unemployment under 8%. Even though they did not show us their analysis, we all know that it was flawed because unemployment reached 10% in 2010. Were their econometric models improperly specified? Were their assumptions about the economy wrong? Is Keynesian macroeconomic theory wrong? Was there bias in their theory about how the stimulus would work?
Toyota bonds are currently rated AA, and Ford bonds are rated BB, Suppose the price of 1,000 one year Toyota bond is 970$. What is the rate of return on the one year Toyota bond
q1. q10000-1000p0.05pop0.610.3awhere q is quantity p is cost pop is population i is disposable income per capita and
The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. As a manager, what are some practical things you could do to raise marginal product per employee th..
If you were responsible for setting the NAAQS for lead, what key determinants would you consider if the standard were established to meet the efficiency criterion. Be sure to itemize separately the benefits and costs associated with your decision.
Consider following claim: price of gasoline has doubled and corresponding change in demand gravely hurt those who have long commutes to work. As a student of economics what do you find correct and what incorrect in this claim.
Suppose you are the manager of a restaurant that serves an average of 400 meals per day at an average price per meal of $20. Compute the price elasticity of demand between these two points. Compute total revenue at the three meal prices
A monopolist with a straight-line demand curve finds that it can sell two units at $12 each or 12 units at $2 each. Its marginal cost is constant at $3 per unit. Given the demand curve, draw the MR, and MC curves for this monopolist.
If we say a good is “perfectly inelastic”, then:
With an interest rate of 10 percent this person uses $100 current income along with an $80 bank loan to finance $60 of education. Explain how this individual should respond if interest rate increases. Discuss income and substitution effects.
If the random variable X is normally distributed with mean and standard deviation, then the random variable Z defined by is also normally distributed with mean 0 and standard deviation 1.
Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?
On a single graph draw marginal cost curve, average total cost curve and average variable cost curve for a typical firm. Explain how area that represents profit or loss this firm will earn.
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