Anthony Stella
Historical Science 202
March 16, 2015
Isaac Newton as a Philosophical Touchstone
Across the scientific community, it is widely believed that Isaac Newton is one of the
greatest scientists and mathematicians to walk the face of this earth. P

ANSWER: A
Please refer to the denition and the computation of the instrumental variables (IV) estimator.
The whole point of this approach is that the IV estimator is consistent (even though the OLS
estimator might not be). In addition, it turns out to be

(a) 2.8
(b) 3.8
(c) 8.3
(d) 2.5
ANSWER: A
For any regression model we know that evaluating the estimated equation at the means will return
the mean.
Mathematically, y = b1 + b2 x2 + b3 x3
= 9 = b1 + 1.2(3) + 1.3(2) = b1 = 2.8
27. A company is accused of r

22. Whichofthefollowingcorrectlyexplainstheslopeofthemoneydemandcurve?
A. Asthepricelevelincreases,eachdollardoesntbuyasmuch,sopeoplewilldemandmore
money.
B. Astherealinterestrateincreases,theopportunitycostofholdingmoneyishigher,sothe
quantityofmoneydema

12. Anincreaseinthegovernmentbudgetdeficit,otherthingsthesame,
A. increasesboththesupplyofloanablefundsandthesupplyofdomesticcurrencyinthemarket
forforeignexchange.
B. decreasesthesupplyofloanablefundsandincreasesthesupplyofdomesticcurrencyinthe
marketfor

[Usethefollowingtabletoanswerquestions3233.]
Notinthelaborforce
12,000
Employed
15,000
Unemployed
3,000
32. Whatistheunemploymentrate?
A. 16.67%*
B. 11.11%
C. 10.00%
D. 5.55%
33. Whatisthelaborforceparticipationrate?
A. 40%
B. 50%
C. 60%*
D. 70%
34. Ifthe

1. SupposetheFedbuysbondsfromthepublicinanopenmarketpurchase.Thiswill_the
moneysupplyintheeconomy,andtherealinterestratewill_.
A. increase;rise
B. decrease;rise
C. increase;fall*
D. decrease;fall
2. Supposeaneconomysrealoutputis$500billionandtheaggregatec

(b) is -67.63
(c) is -0.6756401
(d) is economically signicant
ANSWER: A
We need to know the quantity of meat for which we will evaluate the elasticity, as well as a level
of the price. One approach would be to take the mean of the quantity of meat purchas

(c) that larger classes are associated with smaller testscores, but the eect is moderate relative
to the mean testscore
(d) that larger classes are associated with smaller testscores, but the size of the eect is hard to
interpret
ANSWER: C
We found a nega

(c) the slope no longer indicates the eect of a unit change of X on Y in the log-linear model.
(d) the regression R2 can be greater than one in the second model.
ANSWER: B
You can not compare the R 2 of two regression models when the dependent variables a

ANSWER: C
Option(a) is wrong since the existence of bias has nothing to do with the sign of the correlation
between the endogenous and exogenous vairables, it only determined by whether these two variables
are correlated with each other. Option(b) is wron

1
Anthony Stella
Historical Science 202
May 14, 2015
Darwins Theory of Evolution
Though Darwin was not the one to invent the idea of Evolution- challenging the Christian
idea of existence stemming from the Creation Story- he was the one to carry out the n

Tony Stella
Tuesday, February 16
Historical Science
James Brodrick S.J., Galileo, The Man, his Work, his Misfortunes (Harper and Row: New York,
1964). 145 pages.
I read the book Gelileo by James Brodrick S.J. I would recommend this book to anyone
looking

45. Whichofthefollowingstatementsiscorrect?
A. Fiatmoneyhasintrinsicvalue.
B. Fiatmoneyisanimperfectstoreofvalue.*
C. GoldisanexampleofFiatmoney.
D. [Alloftheabove]
E. [Noneoftheabove]
46. Whichofthefollowingstatementsisanexampleofmoralhazard?
A. Johnbuys

57. Thesubstitutionbiasintheconsumerpriceindexreferstothe
A. substitutionbyconsumersofnewgoodsforoldgoods.
B. substitutionbyconsumersofasmallernumberofhighqualitygoodsforalargernumberof
lowqualitygoods.
C. factthatconsumerssubstitutetowardgoodsthathavebec

[Usethefollowinginformationtoanswerquestions1213.]Stevespendsallofhismoneyon
moviesanddinners.In2011heearned$80perhour,thepriceofmovieswas$10,andthe
priceofdinnerswas$20.
12. Whichofthefollowinginvolverealvariables?
A. Steveswageis8moviesperhour.
B. Steve

1. NBCnewsreportsthatCanadahasexperiencedzeroeconomicgrowthinthelastfiveyears
becausetheirnominalGDPandmoneysupplyhavebeenthesame,andpriceshavebeenfalling.
Theirreport
A. isaccuratetherehasbeennorealeconomicgrowth.
B. isinaccurateinrealterms,Canadahasactu

Part I
Part ITheoretical Questions (each question worth 2 points):
Consider the following regression model:
yi = 1 + 2 x2i + + K xKi + ei .
1. The interpretation of the slope coecient k in the model is as follows:
(a) a 1% change in xki is associated with

43. Based on the results of the second regression, the t-statistic for the test of H0 : 3 +4 = 0 against
H1 : 3 + 4 = 0 will be
(a) -0.6785
(b) 1.09
(c) -2.584
(d) -1.51
ANSWER: A
Quick hint: if is a random variable and you are testing H0 : = c vs. H1 : =