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Calculate the 99 percent confidence interval for β2 in the earnings function example (b2 = 1.073, s.e.(b2) = 0.132), and explain why it includes some values not included in the 95 percent confidence interval calculated in the previous section.
Develop an attitude of professional skepticism
The slopes of the demand and supply equations are different. By making reference to the slopes, explain why the demand elasticity at the equilibrium price and quantity is significantly larger/smaller than the supply elasticity.
Suppose there are 1,000 small farms in this industry. What will be the output per farm How much revenue will each farm earn If in fact the revenues are sufficiently high to yield handsome profits, how might competition change the happy situation
Currently there are zero excess reserves in the U.S. banking system. If the required reserve ratio is 20 percent and the Fed sells 20 million in bonds, the maximum amount that the money supply can change is what
(a) Find the marginal probability density function of Y (b) Find the conditional probability density function of Y given that X=2 (c) Find the covariance of X and Y (d) Are X and Y independent 1 3 9 2 1/8 1/24 1/12 X 4 1/4 1/4 0 6 1/8 1/24 1/12
A sample of 60 individuals, all in reasonably good health, was selected; 20 individuals were residents of Florida, 20 were residents of New York, and 20 were residents of North Carolina.Each of the individuals sampled was given a standardized test..
Determine the reaction function for each firm. Firm 1: Q1 = - Q2, Firm 2: Q2 = - Q1 b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium.
Suppose that under a new law, all businesses must pay a tax equalto 3% of their sales revenue. Assume that this tax is not passed onto consumers. Instead, consumers pay the same prices after the taxis imposed as they did before.
Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produces for $25. The current market price for input X is $100. ..
A monopolist has two types of customers. There are 100 of type A, who will each pay up to $10 for a single unit of goods, and 50 of type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge..
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
Explain the economics of the substitution of ATMs for human tellers. Some banks are beginning to assess transaction fees when customers use human tellers rather than ATMs. What are these banks trying to accomplish?
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