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A local ice cream shop in a beautiful Miami beach realizes that its ice cream sales go up along with the number of shark attacks. Assume you are the owner of the shop and you realize that shark attack can be an excellent predictor of ice cream sales in a linear regression setup. How do you specify the model? Do you see any potential problems related to your justification and model specification? How do you propose to improve it?
q1. assume the following model of expenditure sectorsp c i g nxc 420 45yd yd y - ta tr ta 16ytr0 100i0 160g0
Suppose low-income people have preferences for non-food consumption (NF) and for food consumption (F). In the absence of any income transfer programs, a person's budget constraint is given by NF + PFF = I where PFF is the price of food relative to no..
On a sparsely populated island, high-speed Internet service would have a _____ marginal utility than in New York City, while in New York City quiet evenings would carry a _____ marginal utility than on a deserted island.
Suppose the government of Washington is considering the addition of a new tax on rms. You have been called in to provide expert analysis on how such a tax would eect employment of labor. A tax on every hour an employee works (e.g., \X" cents per hour..
Why a change in the way government might makes transfers to the poor change the poverty rate even if there is no change in the amount of money transferred?
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change - two quarters and a dime. No other combination of coins will make anything come out of the machine.
Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1500 deductable), life insurace equal to a year's salary, vacation time based on length of employment with the..
One stay-at-home mom laments, “Lots of career women think the only reason I’m staying home is that I’m not capable of doing anything else.” Evaluate this criticism. In other words, is it true that the only reason women don’t enter the labor force is ..
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (P = 1.0 is the SRAS Curve, in other words). The aggregate demand curve is Y = 3(M/P) and M = 1,000. If the e..
If an individual is taxed at a 17 percent rate for each extra dollar earned, the reference is to the
A market in which there is an additional transaction that would benefit a buyer, a seller, and any third parties affected by the transaction is called. In the case of spillover benefits or costs,
The change in equilibrium quantity will be:
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