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Problem: In class we saw that efficient estimates of the coefficients from a linear regression model can be obtained under the presence of heteroskedasticity using Generalized Least Squares (GLS). How does GLS work? That is, describe the mechanism through which GLS addresses non-constant error variances to achieve efficient estimation.
What are externalities? Why are they a problem in a market economy? In other words, what about externalities makes a free market fail at correcting them?
Why are good and services counted in GDP at market value? Are there any dis-advantages or problems in using market value?
Generally what are the short-term and long-term effects of immigration on labor markets ? Why is there so much opposition to immigration? What are the benefits of immigration ?
Submit Coca-Cola Company Use of Information Sources assignment. The current business environment provides a plethora of information resources that are essential for companies to develop to understand and reach their customers.
One U.S. dollar is trading on the foreign exchange market for about 1.47 Chesterfield ales (the Chesterfield currency). Therefore, one Chesterfield ale would have purchased how many U.S. dollars?
The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5. Provide the inverse demand and inverse supply functions for pumpkins...
If the interest rate is 9% per year, how long will it take to recover the initial investment?
Pic Inc. produces plastic toothpicks that it sells to distributors in the Southwest. Assuming that the market for plastic toothpicks most closely resembles that of perfect competition and that other firms in the industry do not experience similar cos..
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loanable ..
If leased, the vehicle can be purchased for its value at the end of 5 years. At the end of 10 years, the vehicle will be worth $2000.
Explain David Ricardo's theory of comparative advantage. How does comparative advantage differ from absolute advantage?
How does an increase in G affect the economy? Please show it using AD/AS frameowrk. How does an increase in income tax rate affect economy? Please show it using AD/AS frameowrk. Expansionary fiscal policy: what does it mean? How does it work?
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