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19.21 The Zuckerman et al. paper referred to in the previous question hypothesized that faculty were less accurate than students because they have a tendency to give negative responses to such questions. ("There must be a trick.") How would you test such a hypothesis?
19.22 Calculate the odds ratio for the 2 3 2 table from Exercise 19.7 that combines the data of Clark and Clark (1939) and Hraba and Grant (1970).
Suppose M=$100, and prices are P1= $20 andP2= $20; calculate the utility maximizing quantities ofX1 and X2. If price of good 1 drops to $10,what would be the demand for X1. Using this information,draw a demand curve of X1.
a.) The fixed cost of producing 10 units of output. b.) The variable cost of producing 10 units of output. c.) The total cost of producing 10 units of output. d.) The average fixed cost of producing 10 units of output.
The price of a good to be sold by a Monopoly is $0.50. The market has an elasticity of demand (n) of 5. a. What is the mark-up and what is the Marginal cost b. What would this look like for a perfectly competitive market
Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha.
Explain why this model could not account for the Feldstein-Horioka puzzle (see Section 19.2.2), which does not refer to the correlation between saving and investment in levels but in differences. Can you extend this model to account for the Feldst..
Find the present worth (present cost) of a simple maufracturing project where the initial investment is $413,000 and the cost of operation is $32,300 per year, inceasing by $4,000 per year (arithmetic gradient) beginning at the end of the third ye..
How does this affect the market for peanut butter?
In 2008-2009 the U.S. was in a deep recession and the tools of monetary policy had been used in an attempt to end the recession. Despite these efforts unemployment was above its natural rate and real GDP growth was below its potential rate.
If demand is represented by Qd = 50 -.5P +.005I where I is income and I=$50,000 and supply is represented by Qs = 100 +.4P - 2W where W is wages and W=$15.00. a) Compute the equilibrium price and quantity where wages=W=$15.00.
Perform a common factor test. If the AR(1) model is rejected, and there are terms with insignificant coefficients in the second regression, investigate the consequences of dropping them.
How do you think it might have affected the economy over the past decade?
According to the "January theory," if the stock market is up for the month of January, it will be up for the year. If it is down in January, it will be down for the year. According to an article in The Wall Street Journal, this theory held for 24 ..
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