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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.
(a) What is meant by heteroscedasticity and what are the consequences of applying OLS estimation in its presence? (b) Explain in details the Generalised least Square procedure
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