103 Midterm Answer (Fall 09) Q1: 1a) Economic growth occurs when a country chooses to allocate some of its resources to the production of capital goods‚ instead of consumption goods. This expands the resource base‚ allowing the country to produce more goods and services thus furthering economic growth. Economic growth can also occur when more productive technology is used. Technology makes the production process more efficient so more goods and services can be produced without increasing the
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Weekly Homework 9: Detection of Heteroskedasticity 1. Heteroskedasticity (1 point each) 1) Carefully explain the difference between pure and impure heteroskedasticity and their consequences in OLS. Answer: -Pure heteroskedasticity is caused by the error term of the correctly specified equation. Impure heteroskedasticity is caused by a specification error such as an omitted variable. -Pure heteroskedasticity does not cause bias in the coefficient estimates. However‚ it typically causes
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Research Proposal To: Jeffery Wehr‚ Florida International University online professor From: Talya Van Embden Date: May 24‚2014 Subject: Request for website usability and recommendation research Statement of Problem: In today’s world‚ the need and use of technology is growing rampant in the education field. Due to this‚ many government learning entities such as Universities offer online courses that allow of distance learning‚ and because of this website usability is a large aspect to these
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What is Elasticity? - Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price. If a curve is more elastic‚ then small changes in price will cause large changes in quantity consumed. If a curve is less elastic‚ then it will take large changes in price to effect a change in quantity consumed. Graphically‚ elasticity can be represented by the appearance of the supply or demand curve. A more elastic curve will be horizontal‚ and a less elastic curve will
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Chapter 12 - Money and Banking in the Developing Economy Bimetallic Standard - A monetary system in which a government recognizes coins composed of gold or silver as legal tender. The bimetallic standard backs a unit of currency to a fixed ratio of gold and/or silver. Central Bank - A public institution that manages a state’s currency‚ money supply & interest rates. Central banks also usually oversee the commercial banking system of their respective countries. Recession - A period of slow
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Chicago to Raise Cigarette Tax Source: Chicago Sun Times Accessed: November 23‚ 2013 Posted: November 21‚ 2013 Word Count: 748 Written: November 25‚ 13 Microeconomics The city council in Chicago‚ Illinois is discussing a raise to the tax on cigarettes in an effort to cut the amount of people who start smoking each year. This type of tax is called a Pigouvian tax (meant to limit consumption of a good). Currently‚ the cigarette tax has been stuck at 68 cents a pack since 2006 and the
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Cyclone devastates Australia’s banana crop- Practice IA Introduction to theory: Demand and supply are basic economic theories that can help the government and producers make informed decisions like how much to produce‚ and the price they set for products. Connection to article: The recent Cyclone Larry has affected crops in Australia‚ decreasing their supply of bananas drastically‚ as well as causing a decrease in the employment of workers in the banana industry. Analysis: Demand is the curve that
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6.1a) A monopoly is facing the demand and marginal cost curves which is P = 12 - 0.002Q and MC = 3 + 0.001Q. When the demand curve is P = a- bQ‚ the marginal revenue curve will be MR = a- 2bQ ‚ therefore‚ MR = 12 - 0.004Q.(Refer to figure1) Figure 1 To maximize the profits‚ the company should produce at the output level where marginal revenue is equal to marginal cost. If the marginal revenue is higher than marginal cost‚ the firm can increase profit by producing more. If
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Quiz Product Chapter 1 • According to the well-known business writer‚ Gary Hamel‚ which of the following is the most important business issue of our time? Creation of radical innovation • _____ refer to rules of thumb that firms have found work for them. Heuristics • A product described as a "new product" in terms of design or production rather than marketing‚ falls under which of the following categories? Cost reductions • With reference to new product categories‚ _____ are also known
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1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature. 2. Which of the following is most clearly consistent with the basic guidepost
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