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Simple regression vs multiple regression:
model 1: y=b0+b1x1+u
model 2: y=b0+b1x1+b2x2+b3x3+b4x4+u
Why model 2 in theory is better than model 1 even if the main concern is estimation of the impact of factor X1?
In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)? Why didn't GM reduce employment by more t..
Consumers and businesses with debt overhang are likely to. What term is applied to situations in which the failure of one financial institution increases the odds that another will fail? Lehman Brothers collapsed when.
Assume that labor demand for low-skilled workers in the United States is: w = 24 – 0.1E where E is the number of workers (in millions) and w is the hourly wage. Assume there are currently 120 million domestic U.S. low-skilled workers who supply labor..
Luis wants to have $2,000,000 in net worth when he retires. to achieve this goal, he plans to invest 10,000 each year (starting one year from now) into an account that earns 10% interest compounded annually. The amount of time before Luis can retire ..
Suppose that work hours in New Zombie are 200 in year 1 and productivity is $16 per hour worked. What is New Zombie’s real GDP? $. If work hours increase to 210 in year 2 and productivity rises to $18 per hour, what is New Zombie’s rate of economic g..
Do you think that a firm's market structure can change overtime? What happens to alter the market structure the firm competes in? Has the market structure your firm is in changed? Will it change in the future? Explain using examples.
Which of the following likely occurs when households and firms become more pessimistic?
Intially Starbucks expanded internationally by licensing its format to foreign operators. Why it soon be came disenchanted with strategy.
Describe four different forms of business structure and how they differ from each other. Discuss some of the strengths and weaknesses (advantages and disadvantages) of each form of ownership or business structure. What factors should an entrepreneur ..
The idea that immigration lowers the wages and employment of native-born workers is based on:
Use a graph to analyze the effects of the following shocks on the equilibrium quantity of savings, investment, the interest rate, and the current account in a small open economy. Assume that the economy begins with a balanced current account. Label e..
Explain the hedonic pricing model of job risk. As part of your discussion, explain the shape of workers' indifference curves, isoprofit curves, and the hedonic wage function.
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