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Q1. Give examples of two consumer goods in your daily life. Any goods from all should be of higher demand than supply; the other good should show higher supply than demand. Examples may vary, i.e. from healthy food to wrist watches.
Q2. Let a random variable X be distributed as N (0,1). Now suppose that a second random variable, Y, is constructed as the product of X and an independent random variable Z, which equals 1 with probability ½ and -1 with probability ½. What is the (marginal) distribution of Y? What is the covariance between X and Y? What is the distribution of X conditional on Y?
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Over the long run historically, real wages produce about same pace as labor productivity.
The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
The 2 firms form a cartel & arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits.
For a typical firm producing 100 units of output, short-run marginal cost is constant at $65, average total cost is $95, and average fixed cost is $30.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
Explain why the R-squared from the regression from F test will always be at least as large as the R-square from the BP regression.
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
Discuss the policies that Keynes as well as Hayek supported regarding how federal government ought to manage economy. What are differences between each school of thought.
Compare the consumption levels of workers in both countries. Explains the diversity between the countries.
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