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Policy application . What would be the advantages and drawbacks of replacing the US individual income tax with a value-added tax? What if the VAT instead replaced the state retail sales tax? Who would be the gainers and losers in each case?
Which do you think is the biggest problem with it, and why?
If Wachovia bank receives a $10,000 deposit, and the required reserve ratio is 0.10 (= 10%), how much can the bank loan out? Assume that Wachovia keeps zero excess reserves and only keeps the required minimum reserves.
Assume that there are a large number of identical firms in a competitive industry, each with the cost function: TC = 25+4q+q2 a. What is the minimum price at which firms will continue operating in the short run In the long run
BMW sells 5,000 vehicles in the US. The export price is €40,000. The exchange rate is €1= $1.25. US price elasticity of demand for the German import, in terms of the $ price, is-2. The cost of each vehicle is €30,000. What is the current € profit ..
Using data from 1988 for houses sold in Andover, Massachusetts, from Kiel and McClain (1995), the following equation relates housing price (price) to the distance from a recently built garbage incinerator (dist): fitted log(price) = 9.40 + 0.312 l..
What is the overall significance of the regression? Which test do you use? And why?
Test the null hypothesis that the population variance is equal to 93 against the alternative that the population variance is greater than 93. Use alpha = 0.05. A random sample of 100 with a mean of 60 and a standard deviation.
At the end of 5 years, the compactor will be replaced by another identical compactor (Cynthia hopes to be so lucky.) Assuming that the City will own and operate a landfill for perpetuity and that they will need a compactor
The robotics corporation produces cuddly toys using only computer driven robots. The quantity of toys (t) produced per year is given by T = 10r where r is the number of robots used during each year of production If the market price of robotics 200..
what would be the vehicle operating cost of your company for each semi-truck in cent per mile?
Is the sample mean always equal to one of the values in the sample? If so, explain why. If not, give an example.
Will the combination of subsidies to machines and subsidies to research be better than either of these two policies by themselves?
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