Ask Question, Ask an Expert

+61-413 786 465

[email protected]

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Table 2.8 gives data on expenditure on food and total expenditure, mea- sured in rupees, for a sample of 55 rural households from India. (In early 2000, a U.S. dollar was about 40 Indian rupees.)

TABLE 2.8    FOOD AND TOTAL EXPENDITURE (RUPEES)

 

Observation

Food expenditure

Total expenditure

 

Observation

Food expenditure

Total expenditure

1

217.0000

382.0000

29

390.0000

655.0000

2

196.0000

388.0000

30

385.0000

662.0000

3

303.0000

391.0000

31

470.0000

663.0000

4

270.0000

415.0000

32

322.0000

677.0000

5

325.0000

456.0000

33

540.0000

680.0000

6

260.0000

460.0000

34

433.0000

690.0000

7

300.0000

472.0000

35

295.0000

695.0000

8

325.0000

478.0000

36

340.0000

695.0000

9

336.0000

494.0000

37

500.0000

695.0000

10

345.0000

516.0000

38

450.0000

720.0000

11

325.0000

525.0000

39

415.0000

721.0000

12

362.0000

554.0000

40

540.0000

730.0000

13

315.0000

575.0000

41

360.0000

731.0000

14

355.0000

579.0000

42

450.0000

733.0000

15

325.0000

585.0000

43

395.0000

745.0000

16

370.0000

586.0000

44

430.0000

751.0000

17

390.0000

590.0000

45

332.0000

752.0000

18

420.0000

608.0000

46

397.0000

752.0000

19

410.0000

610.0000

47

446.0000

769.0000

20

383.0000

616.0000

48

480.0000

773.0000

21

315.0000

618.0000

49

352.0000

773.0000

22

267.0000

623.0000

50

410.0000

775.0000

23

420.0000

627.0000

51

380.0000

785.0000

24

300.0000

630.0000

52

610.0000

788.0000

25

410.0000

635.0000

53

530.0000

790.0000

26

220.0000

640.0000

54

360.0000

795.0000

27

403.0000

648.0000

55

305.0000

801.0000

28

350.0000

650.0000

 

 

 

 

Source: Chandan Mukherjee, Howard White, and Marc Wuyts, Econometrics and Data Analysis for Developing Countries, Routledge, New York, 1998, p. 457.

a. Plot the data, using the vertical axis for expenditure on food and the horizontal axis for total expenditure, and sketch a regression line through the scatterpoints.

b. What broad conclusions can you draw from this example?

c. A priori, would you expect expenditure on food to increase linearly as total expenditure increases regardless of the level of total expenditure? Why or why not? You can use total expenditure as a proxy for total income.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91556369
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved