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What is instrumental variable analysis? What methodological problems does it attempt to solve? What are the criteria for a valid instrument? What are the potential problems or pitfalls with instrumental variables?
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. What is the equi..
A complete overhaul at the end of year 4 cost additional $11,000. Annual revenue from using the chipper was $38,000 per year.
If the investment described in Exercise 12 is an individual’s possible weekly compensation and the individual has no control over the outcome, what effort will a risk-averse individual put in? What about a risk-seeking individual?
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there is a price floor of 2.94, what would be the consumer surplus in the market?
Since under a fixed exchange rate system the exchange rate does not change, does this mean that the BP curve never shifts? Why or why not? If it in fact does shift, what effects do such movements have on the equilibrium interest rate and equilibrium ..
If the demand increases for a product like gasoline and there is no change in the supply of gasoline at the same time, then using SUPPLY and DEMAND CURVES, the new equilibrium price might go up or stay the same, or be lowered.
Based on the regression equation, the price of gold increased on average by approximately $___ per ounce for a $500 billion increase in the monetary base (round to the nearest dollar). regression equation $/oz gold=207+.05 monetary base
Discuss potential data sources and methods for estimating costs, benefits and disbenefits identified if your company will evaluate a potential nuclear power plant?
Why are some countries poor (less developed) and others rich (developed)? Discuss the main features of the realist/mercantilist, liberal, Marxist, and structuralist/dependency perspectives on economic development. What are their differences and simil..
What is his budget constraint in terms of Consumption and Hours Worked. Draw his budget constraint on diagram. Now draw several indifference curves and indicate utility maximizing level of Hours worked and Consumption.
A company is considering buying a new piece of machinery. A 10% interest rate will be used in the computations. Two models of the machine are available.
Firm uses 15 units of K, Price of K =$400 per unit,, Price of good =$100; Wage per worker =$40,000 L Q 1 800 2 1900 3 2700 4 3350 5 3775 6 4100. Does this represent the SR or LR? Explain. What is the optimal number of workers this firm will hire?
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