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Q1. An apple grower's orchard provides nectar to a neighbors bees, while the beekeepers bees help the apple grower by pollinating the apple blossoms. Use figure 16.2b to elucidate why this situation of dual positive externalities might lead to an under allocation of resources to apple growing also to beekeeping. Elucidate how might this allocation under allocation get resolved via the means suggested by the coase theorem?
Q2. Verify if the process y_k = 0.6y_k-1 - 0.08y_k-2 + e_k has unit root. If it does, modify the coefficient a_2 so that it does not. Suppose if process does not have unit root which modify a_2 so that it has unit root. Draw graphs of both processes with y_0 = 1 also e_k uniformlydistributed on the interval [-0.5, 0.5].
You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Draw his budget constraint in terms of S and T. What is the slope of the budget constraint and how does it relate to the relative price.
Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.
Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.
If the average income in the town increases to 15, solve for the new equilibrium Quantity and equilibrium Pb.
It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time.
Assume you are part of a research team evaluating a proposal to clean up a hazardous waste site.
The equilibrium quantity increase or decrease depends on Demand
Using the national income identity find the value of imports (IM). Illustrate what is the current account balance. Illustrate what is the savings rate.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
How these earnings differences have changed over the past half century, as well as what factors are responsible for these changes.
What is the short-run equilibrium price. What is the short-run equilibrium market quantity.
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