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Look at a recent copy of a newspaper.
a. What is the top economic news story? With which of the big questions does it deal? (It must deal with at least one of them and might deal with more than one.)
b. What tradeoffs do the news items discuss or imply?
c. Write a brief summary of the news item using the economic vocabulary that you have learned in this chapter and as many as possible of the key terms listed on p. 15 of the text.
Problem: (a) Why is an error term added to a regression and explain its importance in the OLS procedure? (b) Suppose we have a linear equation with a constant term, one expl
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buyers cannot tell whether any given car is a lemon. The percent of all cars that are lemons is theta. How much is theta when all cars offered are sold?
compare the concept of MRTS with the MRS and discuss the similarities and difference between them?
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Q. What is Exchange Rate? Exchange Rate: The ‘price' at which currency of one country can be converted into the currency of another country. A country's currency is ‘strong,'or
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