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Agree or disagree (and justify your answer): If the distribution of u in a population regression model is not normal, then the OLS estimators are not BLUE.
Microeconomics, Economics
Question: When a neighborhood is cleaned up and kept neat, there are a number of positive spillovers: higher property values, less crime, happier residents. What types of government policies can encourage neighborhoods t ...
Question: An economy has a saving rate of s= .08, a depreciation rate of .02, a population growth rate of n= .03, and a growth rate of effective labor of g= .05. a. the capital-output ratio, k/y, for this economy is: b. ...
Question: Consider the following parameters that describe an economy: C = 50 + 0.8YD I = 70 G = 200 TR = 100 t = 0.2 a. Calculate the equilibrium level of income and the multiplier in this model. b. Calculate the budget ...
Question: A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs. What happens to its output? What happens to the price it charges? a. The firm has an employee who thre ...
Question: Suppose that Omar's marginal utility for cups of coffee is content at 1.5 Utils per cup no matter how many cups he drinks. On the other hand his marginal utility per doughnut is 10 for the first doughnut he eat ...
Question: Bowen is a manufacturer of golf carts in Minneapolis servicing Minnesota and several nearby states. Over the past several years, a number of other golf cart companies have established operations in Bowen's mar ...
Question: A house was bought for $200,000 using a 20 year mortgage at 12% interest rate. After the 120th payment it was refinanced with 6% interest rate mortgage for 10 years. What is the reduction in monthly payments? T ...
Question: Why is government spending an important factor in economic stability? What actions might the federal government and the Federal Reserve take to give the economy a boost? What are these policies called? The resp ...
Question: In this question we will analyze the following statement, and show what would happen if the advice given was followed by the Fed: "The increase in the stock market has increased people's wealth. As a result, th ...
Question: Social Security and Compound interests Interest rate is 4% per year. Would you accept a proposal to pay $10,000 for one year and will be paid back $15,000 in the following year? 1. Will you accept the proposal ...
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