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Consider the application on the median voter and public education. (Based on Application 5 on page 655.)
a. Fill in the blanks in the following table.
b. Under what scenario is the median voter more likely to vote in favor of public schooling?
c. Consider the scenario that is least favorable to the median voter. Under what conditions will the median voter vote in favor of public schooling?
For the prostate data of Chapter 3, carry out a best-subset linear regression analysis, as in Table 3.3 (third column from left). Compute the AIC, BIC, five- and tenfold cross-validation, and bootstrap .632 estimates of prediction error. Discuss t..
Assume that there are no excess reserves inthe banking system and the reserve ratio is 40 percent. John Smith finds $10,000 incash under his mattress, stashed there by his great aunt who didn't believe in banks
If quantity of money is $3 trillion, real GDP is $10 trillion, the price level is ..09, the real interest rate 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the velocity of circulation, the value M times V, and nom..
1. For the each of the following functions: 1) find a function for an indifference curve that delivers u=u? units of total utility: 2) Calculate the derivative (dy/dx) of the function (i.e. the instantaneous rate of change). Find the total differe..
A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The marginal physical product of the last unit of labor employed is 5 units per h..
As described in this chapter, during the Clinton administration the policy mix changed toward more contractionary fiscal policy and more expansionary monetary policy. This question explores the implications of this change in the policy mix, both i..
The World of Videos operates a retail store that rents move videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $25,000 per year. The store is located on prime real estate in a college town. World of Vi..
In addition suppose that coffee costs $1 per cup, doughnuts cost $1 each and omar has a budget that he can spend only on doughnuts, coffee or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee.
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). The mining is expected to reduce backpacking visits from the current 10,..
You purchased a $10,000.00 face value commercial bond for $9000.00 on June 1, 2007. The bond pays $500.00 interest at the end of each six months. It is now June 1, 2008. Thus, you have already received two $500.00 payments. The bond matures in fiv..
England and Scotland both produce scones and sweaters. Suppose England can produce 50 scones per hour or 1 sweater per hour. Suppose Scotland can produce 40 scones per hour or 2 sweaters per hour. Before trade England produces 25 scones and 0.5.
How much money will you choose to spend on fireworks, and how much on beer (Since more of everything is better, your budget constraint will hold with equality, or f + b = 50; one way to solve this, then, is to plug in 50 - f for b, and find the va..
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