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Consider a family saving function for the population of all families in the United States:
sav = β0 + β1inc + β2hhsize + β3educ + β4age + u
where hhsize is household size, educ is years of education of the household head, and age is the the age of the household head. Suppose our sample includes only married couples without children. Can we estimate all of the parameters in the saving equation? Which ones can we estimate?
describe returns to scale and give examples of each.
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how does pp curve solve the problem of how to produce, what yo produce, and when to produce?
show this in a pie chart age = under 20|number of people = 20.90
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