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A problem of interest to health officials (and others) is to determine the effects of smok- ing during pregnancy on infant health. One measure of infant health is birth weight; a birth weight that is too low can put an infant at risk for contracting various illnesses. Since factors other than cigarette smoking that affect birth weight are likely to be cor- related with smoking, we should take those factors into account. For example, higher income generally results in access to better prenatal care, as well as better nutrition for the mother. An equation that recognizes this isbwght 5 b0 1 b1cigs 1 b2 faminc 1 u.
(i) What is the most likely sign for b2?
(ii) Do you think cigs and faminc are likely to be correlated? Explain why the correla- tion might be positive or negative.
(iii) Now, estimate the equation with and without faminc, using the data in BWGHT .RAW. Report the results in equation form, including the sample size andR-squared. Discuss your results, focusing on whether adding faminc substantially changes the estimated effect of cigs on bwght.
In the competitive market at a price of $50 and cost function of C=50+5Q2 find out the maximum profit? Show how the solution was reached.
Comparison within Chicago economics - such as two Chicago economists, or two articles by Chicago economists, or two fields as they developed at Chicago, or ideas of a Chicago economist at different points in time.
a family decides to save for the college education of their kindegradener starting with her 6th birthday. they would
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Would this dynamism ?ounder when ownership changed and, if so, how could the company prepare for PAI in the best possible way?
Suppose the nominal interest rate is going to be 10% per year for the next two years. The present discounted value of $500 to be received in two years is: $480.00 $490.00 $350.00 $413.22 $454.45
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When an existing firm exits a market, it:
The production function
An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received
Explain: “Politicians would make more rational economic decisions if they weren"t running for reelection every few years.” Do you favor term limits for elected officials?
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