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Y 1 =a+bY 2 +cX 1 +u 1
Y 2 =d+eY 1 +u 2
Using the order condition, determine whether the two regressions are just, over or not identified.
Four types of financial intermediaries are: A common strategy to reduce the potential of a large financial loss is to: Shares of stock represent:
Is it ever ethical to crack digital rights management tools and why? Does file sharing/ peer to peer services help or hurt digital media sales and why? Is it ever acceptable to misrepresent yourself online and why?
What is the Federal Reserve and why does it exist in our economy? What is Monetary Policy and how does it make adjustments to inflation problems? What was QE (Quantitative Easing) and why did the FED instigate Quantitative Easing? What was the outcom..
The five basi modes of transportation have been available for well over 50 years. Is this the way it will be always be, or can you identify a sixth mode that may become economically feasible in the foreseeable future?
If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent what is your rate of economic profit
Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cos..
q1. the hilton hotel chain serves both business and vacation travelers. d business and mr business represent the demand
A specific McDonald’s franchise owner is looking at elasticities of Big Macs. E(p)= 2 (Price), E(i)=1 (Income), E(mt)=1.5 (m=Big Mac, t= Taco). The franchise owner would like to increase the price of Big Macs by 6%. If the franchise owner currently s..
A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $240,000 a year for the next 50 years. The attorney for the plaintiff’s estate argues that the lost income should be discounted back to the present at..
Using the broken window fallacy as described in “In The News” (p. 14 of Principles of Microeconomics), explain why some journalists, policy makers, and others proclaim that natural disasters are good for the economy in terms of eliminating old infras..
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain
Illustrate the full income budget constraint on an individual who has T0 units of discretionary time, Y0 units of unearned income and a wage rate of W0. In the same diagram, illustrate the utility maximizing choice of leisure and goods/income. Indica..
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