METU
FEAS
ECON 353
Elif AKBOSTANCI
Fall 2013
Assignment I
(Due back on October 30, 2013)
1. In a five country-two commodity Classical model of trade, where the autarky price
ratios are different between all five countries, can you conclude a priori that a
ECON 301 - Introduction to Econometrics I
Atlm University - Department of Economics
November 01, 2012
LECTURE 01
SIMPLE LINEAR REGRESSION MODEL ORDINARY
LEAST SQUARES (OLS) ESTIMATOR
Contents
1. Simple Linear Regression Model . 1
2. Population Regression
DUE: 31.10.2013
METU
DEPARTMENT OF ECONOMICS
ECON 301
PROBLEM SET 2
(ASSIGNMENT # 1)
Question 1
a) Show that SST= SSE + SSR
(
b) Show that
)
c) Show that
d) The formula for the correlation coefficient (for variables a and b) is
)
(
Show that the coefficie
METU/FEAS
Fall 20 13
Econ 353
ELF AKBOSTANCI
TA: Mehmet Ferda KAYA
PROBLEM SET 1
PART A: PROBLEMS
1) The table below shows the hours of labor required to produce 1 unit of each commodity in
each country:
Wheat
Clothing
United States
3 hr
9hr
United Kingdo
METU/FEAS
Econ 353
ELF AKBOSTANCI
TA: Mehmet Ferda KAYA
Fall 2013
PROBLEM SET 2
PROBLEMS
Q.1) Suppose that, from an initial consumer equilibrium position, the price of one good falls
while the price of the other good remains the same. Using indifference c
HIST 2201 I. ARA SINAV
1 Osmanl Devletinin son dnemlerinde kurtulu reetesi gzyle baklan
Osmanlclk, slamclk ve Trklk dncelerinin tutmay nedenlerini yaznz.
2 I. Dnya Sava ncesinde Osmanl Devletinde ittifak araylarn yaznz.
3 Birinci Dnya Sava sonrasnda igall
METU/FEAS
Fall 2012
Econ 353
ELF AKBOSTANCI
TA: Zeynep Elita
ANSWERS OF PROBLEM SET 6 (CHAPTER 11)
PROBLEMS/DISCUSSIONS
Q.1) The growth in only one factor leads, according to Rybczynski Theorem, to the expansion of
output in the good using intensively the
METU/FEAS
Fall 2012
Econ 353
ELF AKBOSTANCI
TA: Zeynep Elita
ANSWERS OF PROBLEM SET 5 (CHAPTERS 9, 10)
PROBLEMS/DISCUSSIONS
Q.1) The Leontief paradox was the finding by W. Leontief in 1953 that the capital/ labor ratio
utilized in US import-substitute ind
METU/FEAS
Fall 2012
ECON 353
ELF AKBOSTANCI
TA: ZEYNEP ELTA
ANSWERS OF PROBLEM SET 4 (CHAPTER 7-8)
PROBLEMS/DISCUSSIONS
Q.1) The physical definition of factor abundance is based on the relative physical amount of the
factors present in the country. The co
METU/FEAS
Fall 2012
ECON 353
ELF AKBOSTANCI
TA: ZEYNEP ELTA
ANSWERS OF PROBLEM SET 3 (CHAPTERS 5-7)
PROBLEMS/DISCUSSIONS
1)
good Y
E2
E1
(Px/Py)2
(Px/Py)1
good X
In the graph above, the initial equilibrium is at point E 1 with relative prices (Px Py)1. If
METU/FEAS
Fall 2012
Econ 353
ELF AKBOSTANCI
TA: Zeynep Elita
ANSWERS OF PROBLEM SET 2 (CHAPTER 4)
PART A: PROBLEMS
1)
a) TR: 2 beer = 1 shoes
US: 1 beer = 2 shoes
Turkey has a com. adv. in beer and US in shoe production.
b)
beer
600
400
CPFT
PPFT
300
200
METU/FEAS
Fall 2012
Econ 353
ELF AKBOSTANCI
TA: Zeynep Elita
ANSWERS OF PROBLEM SET 1 (CHAPTERS 2, 3)
PART A: PROBLEMS
1) The United States has an absolute advantage in the production of wheat since 3 hrs. unit < 4
hrs. unit while the United Kingdom has a
Problem Set I
4) The following table shows the number of days of labor required to produce 1 unit of output of
textiles and automobiles in Turkey and Japan:
L/Q
Textiles
Automobiles
Turkey
100 days
4 days
Japan
60 days
3 days
a) Calculate the autarky pric
1657352 Murat ALAYAN
METU
FEAS
ECON 353
Elif AKBOSTANCI
Fall 2012
Assignment I Solutions
(Due back on October 31, 2012)
1. Yes. Once the autarky price ratios are different among all five countries, we can predict
that all five countries will desire to tra