Reference no: EM131093794
Economics 111 - Principles of Economics - Accelerated Treatment - Problem Set 7
Q1. Which of the following are microeconomic issues? Which are macroeconomic issues?
a) The causes of inflation in a very small country.
b) The determinants of investment spending by the General Motors Corporation.
c) The causes of the decline in US interest rates during the early 1990s.
d) The decision of Citibank to lower credit card interest rates in the early 1990s.
e) The impact of introducing the new product Nutrasweet on employment in the US sugarrefining industry.
Q2. Which of the following transactions would be included in the gross domestic product? For those included, indicate whether they count as C, I, G, or net exports. For those not included, explain why not. (Unless otherwise stated, assume all buyers and sellers are domestic).
a) The purchase of a personal computer by a household.
b) The purchase of a personal computer by a used car dealership to keep track of sales.
c) The purchase of a used car from your neighbor.
d) The salary of the Mayor of New York City.
e) The purchase of 100 shares of General Motors stock by a household.
f) An increase in General Motor's inventory of unsold automobiles.
g) An unemployment insurance payment received by an unemployed autoworker.
h) The purchase of 100,000 paper clips by IBM, all of which are used by office workers during the year.
i) The purchase of a Northrop jet fighter by the US Air Force.
j) The deposit of $1,000 into your bank account.
k) The donation of $100 worth of used clothing to a charity.
l) The purchase of American-produced wine by a Japanese importer.
m) The purchase (by an American household) of an automobile produced by a Japanese-owned automobile company operating on American soil.
n) The purchase (by an American household) of an automobile produced by an American auto manufacture, but using many parts produced in Japan.
Q3. Suppose you borrowed $200 one year ago and must now repay $210. The inflation rate over the year was 7 percent.
a) What is the nominal interest rate on this loan?
b) What is the real interest rate on this loan?
Q4. In April 1991, US private sector workers earned an average of $10.28 per hour. By April 1992, this figure had increased to $10.54. Over the same period, consumer prices increased by 3.2 percent (according to the CPI). Find the percentage change in the real wage rate over this twelve month period.
What is the coefficient of determination adjusted for degree
: Perform a multiple regression in Excel and provide excel output for the regression model = βo + βo(Lot size) + βo(Trees) + βo(Distance) + ∈ Write down the equation for regression line. What is the standard error of estimate? Interpret its value. What..
|
Continues to eat at the same rate
: A certain animal in the zoo has consumed 39 pounds of food in six days. If it continues to eat at the same rate, in how many more days will its total consumption be 91 pounds?
|
Find the dot product
: Find the dot product
|
Simple linear regression model by ordinary least squares
: McGill Company sales. The data below show seasonally adjusted quarterly sales for the McGill Company (Y, in million dollars) and for the entire industry (X, in million dollars) for the most recent 20 quarters
|
What is the nominal interest rate on this loan
: Suppose you borrowed $200 one year ago and must now repay $210. The inflation rate over the year was 7 percent. What is the nominal interest rate on this loan
|
Installing point-to-point communications
: It is important that we all understand the issues and variables involved with installing point-to-point communications. You WON'T be required to memorize the Fresnel Zone or earth bulge formulas; however you WILL need to know the principles regardi..
|
What is the quantity of air fresheners
: Economics 111 - Principles of Economics - Accelerated Treatment - Problem Set 6. In a perfectly competitive market for air fresheners the demand is given by: P = 20 – 5Q and the marginal cost MC = 10. What is the quantity of air fresheners the market..
|
Information assurance capstone
: In the context of information processing, computer security and trusted systems, explain what is meant by the following terms and why we want to use them:
|
Use the hildreth-lu procedure to obtain
: a. Use the Hildreth-Lu procedure to obtain a point estimate of the autocorrelation parameter. Do a search at the values p = .1, .2, ... , 1.0 and select from these the value of p that minimizes SSE.
|