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It is possible that the ASVABC test score is a poor measure of the kind of ability relevant for earnings. Accordingly, perform an OLS regression of the logarithm of hourly earnings on years of schooling and the ASVABC score using your EAEF data set and an IV regression using SM, SF, SIBLINGS, and LIBRARY as instruments for ASVABC. Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.
What might be the rationale for the introduction of the "employed civilian labor force" (X6) in the demand function? How would you interpret the various partial slope coefficients? Obtain OLS estimates of the preceding model
Demand function: qd=5,000-50p, where qd is quantity demanded and p is price per unit. A. How man units with be demanded between $10, and 20 Between $20 and 30 B. What is the arc price elasticity of demand $10, and 20? Between $20 and 30 C. What is th..
A monopolist faces a demand curve given by: P=220-3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $40. There are no fixed costs of productions.
Suppose there are 2 countries, Home and Foreign, two factors of production, capital and labor and two products, food and cloth. Home has 100 units of labor and 200 units of capital, while Foreign has 300 units of labor and 150 units of capital. \(..
Compare Country Alpha with Country Omega. Which country would you expect to have a higher unemployment rate in each of the following situations?
Five separate projects have calculated rates of return of 7, 11, 15, 18, and 20 percent per year. An engineer wants to know which projects to accept on the basis of the rate of return. She learns from the finance department
Calculate consumer surplus and producer surplus.
What quantity does the firm produce and what is its price?
Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment B) At MARR= 15% determine the acceptability of..
A monopolist faces a demand curve given by: P = 105 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production.
RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel for an initial cost of $30,000 and should last for 15 years. Maintenance will cost $1,000 per year.
Let F : R -> R be a strictly increasing function. If the utility function u* is de ned by u*(x) = F(u(x)) what are the Hicksian demand functions generated by u*(answer in terms of h(p; u) and e(p; u)). How are the expenditure functions related
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