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Imagine that Congress decided to fund an increase in Social Security benefits by increasing the payroll tax on employers. Would this prevent employees from being affected by the higher tax? Draw a diagram to illustrate your answer.
Delete these two observations and construct a 95% confidence interval for the mean increase, using the remaining 26 observations. Do the outliers have much of an effect on the confidence interval?
Suppose people had a choice among five uniform colors rather than being required to wear blue. Would you expect the benefits of requiring uniforms to decrease by a little or a lot?
What is the probability that Medco Construction will be in violation of their construction contract and what is the probability that they will not be in violation?
suppose you are estimating a simple linear regression model. (a) If you multiply all the x values by 20, but not the y values, what happens to the parameter values beta1 and beta2 what happens to the least squares estimates b1 and b
You are given the following information on the bond market: Money available on January 1, 2004: one thousand dollar interest rates on January 1, 2004, on bonds of different maturities: 1 year, 4%; 2 year, 5%; 3 year, 5.5%; 4 year, 6%
After a careful study, a firm has estimated its production function as follows: ln Q = 0.375 ln K + 0.625 ln L, where Q = units of output, K = units of fixed factors and L = units of variable factors. What kind of returns-to-scale does the firm e..
Suppose that natural real output in the country of Eudemonia grows at a steady rate of 3 percent per year. In the past, velocity has been approximately constant, and the Eudemonian Central Bank (ECB) has maintained a target rea..
A firm's call center handles 150 calls an hour. It can staff with full time employees or trainees. It has 28 full time employees and 20 trainees . A full time employee can handle 5 calls an hour and a trainee can handle 3 calls an hour.
According to Summers what is the most important event over the past 25 years in the global economy Does he see the success of China and the other emerging economies as a threat to the US Why or why not
A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $ 1,000 per diamond, and the demand for diamonds is described
How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected?
Can you think of examples in the automotive industry where consumers are willing to pay more for what are perceived as higher quality cars? Can you offer counterexamples in either the automotive or another industry where consumer practices are sol..
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