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Q1. In our study of the problem of measurement error in the dependent variable, we learn that one solution is to use proxy variables and instrumental variables. What is the difference between a proxy variable and an instrumental variable? When would you use one and when would you use the other?
Q2. How do individuals, firms and governments use their scarce resources to satisfy their needs?
Q3. Which of the following hedging strategies involves a loan without a futures contract?
Should Roscoe's Rascals match the price offered by the competitor.
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
Explain why Blazo's performance from providing these services to ABC Company and other firms will decline if economic growth is reduced.
Using the concept of price elasticity explain why the price of basic commodities has to be regulated in price rise.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Explain the solution to the firm's cost-minimization difficulty ever occur off the iso-quant representing the required level of output.
If the economy is competitive so that factors of production are paid the value of their subsidiary products, what is the share of total income that will go to land.
A manufacture procedure using 2 inputs, labor as well as capital.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.
Illustrate types of government programs would be most effective in combating each type of unemployment.
These options also sell for $3 each. Strategy C is to establish a zero-cost collar by writing the January calls and buying the January puts.
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