CHAPTER 4 SOLVED EXERCISE
The text said that raising a number to an odd power was a monotonic
transformation. What about raising a number to an even power? Is this a
monotonic transformation? (Hint: consider the case f(u) = u^2.)
The function f(u) = u^2 i
CHAPTER 3 SOLVED EXERCISE:
If we observe a consumer choosing (x1, x2) when (y1, y2) is available one time,
are we justified in concluding that (x1, x2) strongly preferred to (y1, y2)?
No. It might be that the consumer was indifferent between the two bundl
Raise or Lower the cost of Tuition
Anna Youngs
ECO204: Principles of Microeconomics (BBH1326A)
Instructor: Sean Bedard-Parker
July 6, 2013
Assess a raise in tuition and if it will necessarily result in more revenue.
At Nobody State University, there would
ECO 204 Week 5 DQ 2
Tariffs and Quotas. Who gains and who loses from a tariff? How do the effects of tariffs differ
from the effects of quotas? If you were a small country, what would you rather utilize?
Domestic industries have both tariffs and quotas th
CHAPTER NO 3:
BUDGET CONSTRAINT
SOLVED EXERCISES:
Originally the consumer faces the budget line p1x1 + p2x2 = m. Then the price of
good 1 doubles, the price of good 2 becomes 8 times larger, and income becomes 4
times larger. Write down an equation for th
CHAPTER 7 Functional Form and Structural Change
the null hypothesis, W t has a mean of zero and a variance approximately equal to the number of
residuals being summed (because each term has variance 1 and they are
independent).Thetestisperformedbyplotting
Elasticity
Analyze the determinants of the price elasticity of demand and determine if each of
the following products are elastic or inelastic:
bottled water
toothpaste
cookie dough ice cream
fresh green beans
gasoline
In your analysis, please make sure t
Circular Flow Diagram
Explain how the circular flow diagram relates to the current economic situation.
Using the circular flow diagram, explain a way that your family interacts in the factor
market and a way that it interacts in the products market.
Guide
Running head: RAISE OR LOWER TUITION
1
Raise or Lower Tuition
Victoria L. Langer
ECO204 Principles of Microeconomics
19 May 2016
Susan Didriksen
RAISE OR LOWER TUITION
2
Raise or Lower Tuition
Nobody State University (NSU) is looking to increase revenue.
Domestic industries use both tariffs and quotas. A tariff is a tax on imported goods and
services and a quota is quantity limited time. A tariff raises prices, reduces imports and
consumptions, increase domestic output, produces government revenue and let
1951.3 to 2000.4, a total of 197 observations. The GMM estimator is precisely the instrumental variables
estimator shown in Chapter 5. The estimated equation (with standard errors shown in parentheses) is
(m p)t =1.824(0.166) +0.306(0.0216) yt 0.0218(0.00
one suggested in Example 2.3, with the addition of a time trend: ln(G/pop)t = 1 +2 ln(I/pop) +3 ln PGt
+4 ln PNCt +5 ln PUCt+6t+t. The three prices in the equation are for G, new cars, and used cars.
I/pop is per capita income,andG/popispercapitagasolinec
AndrewsandPlobergerpresentsomeresultstosuggestthattheexponentialformmay be preferable based on
its power characteristics. In principle the preceding suggests a maximum likelihood estimator of (or T1)
if MLisusedastheestimationmethod.Propertiesoftheestimat
CHAPTER 7 Functional Form and Structural Change 135
7.5.2 RECURSIVE RESIDUALS AND THE CUSUMS TEST Example 7.6 shows a test of structural change
based essentially on the models ability to predict correctly outside the range of the observations used to
esti
Implemented in accordance with Brazil's Lei de Cotas (Law of Social
Quotas), these measures seek to ensure that Brazil's public
universities reflect the country's diverse population. The
implementation of these measures represents a big leap, but Brazil
s
Dallas-based Hunt Oil Co. will slash 10 percent of its workforce because of reduced activity in the oil
and gas sector, a company spokeswoman told Reuters in an email.
The spokeswoman did not say how many employees would be affected or how many people wor
Externalities
Explain the difference between a positive and negative externality. In your analysis,
make sure to provide an example of each type of externality. Why does the
government need to get involved with externalities to bring about market efficien
Week Three Lecture
Please click on the PowerPoint symbol to download this
week's lecture, or click here to open a PDF version of
the lecture.
ECO204Week3
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Transfers
Why would cash transfers typically be preferred by recipients over in-kind
transfers? What are the pros and cons of each from a government perspective?
Respond to at least two of your classmates posts.
Cash transfers are generally preferred over
Tariffs and Quotas
Who gains and who loses from a tariff? How do the effects of tariffs differ from the
effects of quotas? If you were a small country, what would you rather utilize?
Guided Response: Review the discussion board posts of your classmates. N
Running head: MARKET STRUCTURE
1
Market Structure
Victoria L. Langer
ECO204 Principles of Microeconomics
5 June 2016
Susan Didriksen
MARKET STRUCTURE
2
Market Structure
As the mayor of the city, it is incredibly important to understand the market
structur
Barriers to Entry
Analyze the major barriers for entry and exit into the airline industry. Explain how
each barrier can foster either monopoly or oligopoly. What barriers, if any, do you
feel give rise to monopoly that will allow the government to become
Market Structures
Read the article, The Ethics Of Big Data. Based on the content presented in the
article, describe the microeconomic principles being used, in other words what is
the impact for demand? List the different types of market structures that b
Grading Summary
These are the automatically computed results of your exam. Grades for essay
questions, and comments from your instructor, are in the "Details" section below.
Date Taken: 5/21/2016
Time Spent: 16 min , 16 secs
Points Received:
9 / 10 (90%)
Grade Details - All Questions
Question 1. Question :
Which of the following would embody entrepreneurship as it is defined
by an economist?
Student Answer:
A doctor
A professor
CORRECT
The owner of a dry-cleaning business
A coal miner
Points Received: 1 o
Fixed and Variable Costs
After reading Chapter 8 in the text and viewing the required video for this week,
Fixed, variable, and marginal cost, address the following in your initial post:
First, describe several different fixed costs and variable costs ass
Short and Long Run
Lets assume that you own a fast food restaurant and you are faced with many
customers each day eating in the restaurant without any tables. Describe the
difference between the short run and long run in the example to bringing about
more
Short and Long Run
Lets assume that you own a fast food restaurant and you are faced with many
customers each day eating in the restaurant without any tables. Describe the
difference between the short run and long run in the example to bringing about
more
Week Four Lecture
Please click on the PowerPoint symbol to download
this week's lecture, or click here to open a PDF
version of the lecture.
ECO204Week3
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140 CHAPTER 7 Functional Form and Structural Change observations 1,.,[T] and model E[m(yt,xt |
2)] = 0 applies to the remaining T [T] observations.17 This describes a nonstandard sort of
hypothesis test since under the null hypothesis, the parameter of in
a. Assume that x,u, and are all normally distributed with means ,0, and 0, variances 2 ,2
u, and 2 , and zero covariances. Obtain the probability limits of the least squares estimators of
and . b. Asanalternative,considerregressingxonaconstantand y,andth
Ourprocedureswillcontinuetobedirectedtowardanobjectiveofrejectingonemodel in favor of the other.
Yet, in fact, if we have doubts as to which of two models is appropriate, then we might well be convinced
to concede that possibly neither one is
reallythetru
hardly meet that standard.
Wehavetestedthehypothesisthattheregressionmodelforthegasolinemarketchanged in 1973, and on the
basis of the F test (Chow test) we strongly rejected the hypothesis of model stability. Hansens test is not
consistent with this resu
where Z1 is the variables in Z that are not in X.
8.3.3 COMPREHENSIVE APPROACHTHE J TEST The underpinnings of the comprehensive approach are
tied to the density function as thecharacterizationofthedatageneratingprocess.Let f0(yi |data,0)
betheassumed dens