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Suppose that population follows: final=B0+ B1attend+B2study +u but instead you estimate that final=b0+ b1attend, where b0 is the estimated intercept and b1 is the estimated slope. Suppose that b1>0. Moreover, you know that there is a positive correlation between study and final and a positive correlation between study and attend. Then what is the direction of the bias of your estimated b1? Is it upwards or downwards? Show algebraicallyalso that your estimate for B1 is not unbiased and consistent.
What is meant by tax incidence? Does it matter for the incidence of a tax on the sale of a good if the tax is placed on the seller or if it is placed on the buyer of the good? Explain.
The determinants of demand and the demand for paperback books. For each of the following, state the determinant of demand that is changed, and explain how the determinant affects the demand for books.
How many years would it take for an investment in year 1 with increases of 10%/yr to have a present worth f $1 million at an interest rate of 7%/yr?
Suppose the firm chooses this input combination. What is the firm’s short run cost function? What are the firm’s fixed costs? What are the firm’s variable costs?
According to Turban, et al, between October 2011 and February 2012, there were 86 known attacks in the United States, an increase of 87 percent from the prior.
In year 2016, ABC Corporation earned $68 million from which 35% was retained for investments and the rest was payed as dividends. If during the same year, shares of ABC stock was traded at $38 per share and if 52 million shares of its stock was ou..
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
Explicate the difference between balanced growth strategy and unbalanced growth strategy.
Does Economic Growth Always Lead to Inflation? Why or why not? Please cite sources.
Assuming no depreciation in the value of the equipment, Abby's business earned an economic profit for the year of ______ .
What is price information asymmetry? Explain the reason for search online purchase offline behavior. How do search sites drive consumers to retailers? What are the benefits of barter? Who determines whether a price is fair? Why is price often a light..
Assume that the supply of soda is more elastic than the demand for soda. Using a supply and demand diagram and a "tax wedge," show whether the buyers or the sellers will bear the bigger burden of a soda tax.
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