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Consider the regression equation
where x2, is exogenous and x3, is endogenous.
Which of the following conditions must a variable satisfy to be useful as an instrument for x3,?
You may select more than one condition. You will receive credit for each correct condition. You will lose marks for selecting an incorrect condition. The lowest mark that you can score for this question is zero.
Assume that the demand for a commodity is represented by the equation P=10-0.2Qd and supply by the equation P=2+0.2Qs. where Qd and Qs are quantity demanded, and quantity supplied respectively, and P is the Price Use the equilibrium condition Qs=Q..
suppose the daily demand for coffee in seattle is qd 1000003-p2a. what is the elasticity of demand at a price of 2b.
Inflation affects creditors and debtors. Suppose the Canadian debtors borrowed $100 from the Canadian creditors on December 31, 1992 and promised to pay back $105 on December 31, 1993.
find the optimal level of pollution as recommended, we need to set total marginal cost = 0, then I have 2 + 2P -3 = 0 => 2P -1 = 0 => P = 0.5 You have already evaluated MCP = 2 + 2P and MCC = -3 B) At this level of pollution, what is the marginal cos..
a. If the interest rate is 35%, what is the maximum you can spend in the current period b. Id the interest rater was lower, you probably would be able to spend more than that. What would be the max interest rate that would allow you to spend $225 ..
Output variable: 1 2 3 4 5 6 7 8 9 Costs: $35 75 110 140 175 215 260 315 390 a) Show AFC, ATC, AVC and MC in a table b) GRaph th AFC, ATC, AVC and MC curves. Say fixed costs dropped to $50. Which curves shifted.
Thereare large numbers of sports industries which are producingfootballs and they are competing with each other with respect toprice as well as quality. Suppose that the marginal cost ofproducing footballs is $20 per football
Suppose the market demand function for ice cream is and the market supply function for ice cream is , both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream.
Show a consumers budget constraint and indifferance curves for wine and cheese. Show the optimal consumption choice. If the price of wine is 3$ per glass and the price of cheese is $6 per pound, what is the marginal rate of substitution at the opt..
Newton exports all their products outside the city and Garfield only sells their products within the city. Newton experiences growth, so it hires 100 more workers, all of whom come to reside in city A.
assume you have the following model of the expenditure sectorsp c i g nxc 400 0.8ydio 200g 300 0.1y -
Given the table below, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity. What is the equilibrium price and the equilibrium quantity
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