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1. Give a noneconomic example of two variables that are positively correlated and an example of two variables that are negatively correlated.
2. Why is the index of leading economic indicators useful for forecasting GDP?
3. What are the three features of comovement that macroeconomists are interested in?
Enter the estimate of the intercept term of the first stage regression in the box and enter the 25LS estimate of t3L in the box below (rounded to 3 decimal places).
Suppose that a modern plague (AIDS, SARS, Ebola virus, avian flu) wipes out or incapacitates a major share of a small country's work force. If this country's labor market is competitive, what effect will this disaster have on wages in this country..
Two countries have the production possibilities frontier (PPF) shown in Figure 3. Consumia chooses point C, whereas Investia chooses point I. Which country will have the higher PPF the following year? Why?
Should a social planner be concerned with the distribution of income or the distribution of utility? How does the answer relate to needs and abilities?
Did the bumper harvest increase or decrease the total revenue of American wheat farmers? How could you have predicted this from your answer to part a?
Determine the two equal deposits, the first deposit required now and the second deposit at the end of year 6, so that you can withdraw $2,000 at the end of each year for the next 12 years. Assume that money earns 4% interest, compounded monthly.
Can we draw any conclusions regarding the limits of the public sector from the European experience? Do you think the same limits would apply to the United States?
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the marginal c..
A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract consumer surplus
If these salaries are expected to remain high, will more people enter doctoral programs in economics? How would such entry affect the longrun price elasticity of supply? V
Suppose the consumer's utility function is as c1c2 where c2 is to the 0.6 power. If y1=2000 and y2=1296, and the interest rate is 8%, what are the optimal levels of cosumption in periods 1 and 2?
Each of these customers are willing to purchase cable service, but only if the price is just equal to, or lower than, his or her willingness to pay. Morgan's willingness to pay is $180; Larry's, $100; Clyda's, $70; Janet's, $40; and Tom's, $0.
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