Reference no: EM131019828
Homework #1
1. Math Review
Suppose that you have two straight lines on a coordinate plane and each line is described by two points. Points A (Y=1, X=2) and B (Y=2, X=4) belong to Line 1, while points C (Y=9, X=1) and D (Y=4, X=6) belong to Line 2.
a. Draw the two lines on the coordinate plane.
b. Find the slope of each line.
c. Find the vertical and the horizontal intercept of each line.
d. Find an equation for each line.
e. Find the coordinates of the intersection of the two lines by solving the two equations simultaneously.
2. Positive and Normative Statements
Identify whether the following statements are normative (N) or positive (P).
a. Today, the stock market witnessed a significant rise in the Dow, NASDAQ and S&P 500.
b. What we need is a government that spends tax money wisely.
c. Currently the unemployment rate is about 4.7%.
d. The government should lower farm subsidies to ensure fair play in the international agricultural market.
3. Comparative advantage and Absolute advantage
Suppose that both John and Jane like to grow tomatoes and green peppers in the backyard. In one month, John can grow in his backyard either 60 tomatoes and 0 peppers or 0 tomatoes and 30 peppers or any other combination lying on the line between these two points. In the same amount of time, Jane can grow in her backyard either 40 tomatoes and 0 peppers or 0 tomatoes and 10 peppers or any other combination lying on the line between these two points.
a. Assuming that there is no trade in vegetables between John and Jane, what is the price of 1 pepper in terms of tomatoes for John?
b. Assuming that there is no trade in vegetables between John and Jane, what is the price of 1 pepper in terms of tomatoes for Jane?
c. Who has the comparative advantage in the production of tomatoes? Who has the comparative advantage in the production of green peppers?
d. If they start trading with each other, what should John sell and what should Jane sell?
e. How much will they be willing to offer/accept for any transaction in peppers and tomatoes? (Hint: what is the range of prices in terms of tomatoes that John and Jane are willing to accept for one pepper?)
4. Production possibility frontier (PPF)
Wonderland produces two goods, CDs and DVDs. The graph above displays the country's PPF. Answer the following questions.
a. Which point displayed on the PPF is not a feasible production point for Wonderland?
b. If Wonderland is currently producing at combination A, what is the opportunity cost of producing 150 more DVDs?
c. If Wonderland is currently producing at combination C, what is the opportunity cost of producing 1 more CD?
d. What is happening to the opportunity cost of producing more DVDs if we move from point A to point C. Why?
|
Determine the level of significance for testing
: Determine the level of significance for testing Ha: µ = 40. Is there significant evidence in the data to support the contention that the additive has decreased the mean absorption rate of the stain using an a =.05 test?
|
|
Is it synonymous with nationality
: What is culture? Is it synonymous with nationality? Can culture emerge from the intersection of multiple factors, such as gender identity, ability status, or language? Consider these questions as you prepare to describe your own culture.
|
|
Efficiency measures being implemented
: How many days must be sampled to test the proposed hypothesis if she wants a test having a =.05 and the probability of a Type II error of at most .10 when the actual value of m is 12 hours or less (at least a 25% decrease from prior to the effici..
|
|
Daily dietary allowances for many supplements
: A national agency sets recommended daily dietary allowances for many supplements. In particular, the allowance for zinc for males over the age of 50 years is 15mg/day. The agency would like to determine if the dietary intake of zinc for active mal..
|
|
Draw the two lines on the coordinate plane
: Find an equation for each line - Find the coordinates of the intersection of the two lines by solving the two equations simultaneously.
|
|
Find the domestic demand and the domestic supply curves
: Find the domestic demand and the domestic supply curves for sardines in Finlandia. What is the equilibrium price and quantity in the domestic market for sardines
|
|
Computer software program to simulate
: Use a computer software program to simulate 100 samples of size 25 from a normal distribution with µ = 30 and σ = 5. Test the hypotheses H0: µ ≠ 30 versus Ha: using each of the 100 samples of n = 25 and using a = .05.
|
|
What is the unit cost at that level of production
: A manufacturing company uses the following function to model the unit cost in dollars to produce the x number of toys. For what number of toys is the unit cost at its minimum? What is the unit cost at that level of production?
|
|
How much your appearance should affect
: What are your thoughts regarding potential employers not hiring you or someone else due to tattoos that cannot be covered up?
|