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1) The file Corruption.xls contains country-level data on two variables. One of these is a measure of perceptions of political corruption.
a) Before looking at any data, propose a simple economic story (model) for how these two variables might be related. Write a paragraph of no less than 50 words in which you explain your argument. Which is the independent, and which is the dependent variable in your model?
b) Whichever way you've chosen to model this problem, execute a linear regression. For one time in your life, you are going to be calculating the slope and intercept estimators in EXCEL
c) What percentage of the variation of your dependent variable is explained by the independent?
d) Also "by hand," calculate the variance of ^β1. Next, calculate the test statistic and p-value for a hypothesis test that the population slope is zero. (The p-value is going to be extremely small and not be on any t-table. Figure out how you can use Excel to calculate it.
suppose that Ike is loss averse. In the morning, Ike's stock- broker calls to tell him that he has gained $1000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an extra $1000 in taxes.
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sella. any positive output the entrepreneur decides upon because all of it can be sold. b. nothing at all; the firm shuts down c. the ou..
Which market structure is best suited for the pharmaceutical industry (perfect competition, monopolistic competition, monopoly and oligopoly)
Identify a product that could be promoted using a social networking site such as Facebook. In about 100 words, explain why your chosen product would be a good candidate for a social networking-based promotion strategy.
Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession. What is the 'Crowding Out' e..
What is the underlying message of the following lyrics from Keynes? [Keynes] Public works, digging ditches, war has the same effect. Even a broken window helps the glass man have some wealth.
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram.
Why does the Average Physical product curve slope downwards so soon? What's the relationship between Average physical product curve and Marginal physical product curve?
A job order cost accounting system is fully integrated into the general ledger of a company. Identify the major general ledger accounts used in a job order cost system
Based upon marginal revenue or marginal cost analysis, explain how output and price are determined in monopolistically competitive markets.
How much does the economy have to grow (potential output is, 3.5% and the unemployment rate is 7.3%) in 2014 to bring the unemployment rate down to 5%? How much does it have to grow each year to bring the unemployment rate down to 5% by 2017.
At what level of L does the average product reach its maximum and does the total product curve have a region of increasing marginal returns?
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