Econ 214 Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? A financial assest is included in the M1 money supply when it can be quickly converted into the physical form of money‚ such as dollars and coins. Interested-earning checkable deposits are included because it can be quickly accessible without limitations
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Baldeo Persaud NT 1230 Unit 5 Problem Set 1 Matching Complete the following exercise by matching the terms with their corresponding definitions. a. automated password guessing b. Windows authorization mechanism c. passwords plus smartcards d. stored in a digital certificate e. standard for smart card support f. decrypts data encrypted with a certificate g. firewall exceptions h. standard for fingerprint scanners and other devices i. potentially destructive software j. firewall rule requiring IPsec
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Answer No. 1 Production possibility curve is a particular form of curve‚ which shows the possibility of production in a particular economy (Gwartney‚ Stroup‚ Sobel‚ Macpherson p.28). In an economy‚ the resources are scarce‚ therefore‚ it is important for the economy to make sure that‚ it keeps a balance between the productions and utilizes its resources appropriately. If the production possibility curve of an economy will move outwards then‚ the long run supply curve will have a positive change
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Problem Set 1 Complete all questions listed below. Clearly label your answers. 1. The receipts and year of release of the five movies with the largest nominal box office revenues‚ along with the CPI data of each year are presented below. Assuming that the receipts for each of the movies were derived during their year of release‚ convert the receipts for each to real dollars for the year 2010 (2010 CPI 218.1). Put the movies in order from largest to smallest real box office receipts. Movies
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Problem Set 3 Name Problem Set 3 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 6. 1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices. Price of crackers Quantity Demanded (per month) $3 80 $2.5 120 $2 160 $1.5 200 $1 240 $1.00 - $1.50: ___$-0.45________________________________ $1.50 - $2.00: ____$_-0.77______________________________ $2.00 - $2.50: _____$_-1.28_____________________________ $2.50 - $3.00: ____$_-2
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Problem Set II Problem P9 17: Jack Hammer FV (Table 1) at 11% discount rate 2.00 x .901 = $1.80 2.20 x .802 = $1.79 2.40 x .731 = $1.75 33.00 x .731 = $24.12 -------- $29.46 Problem P9 - 22: Alternative Present Values: Your rich godfather has offered you a choice of one of the three following alternatives: $10‚000 now; $2‚000 a year for eight years; or $24‚000 at the end of eight years. Solution: (first alternative)
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Running Head: MACRO ECONOMICS Macro Economics Econ 214 Problem Set 3 Complete all questions listed below. Clearly label your answers. 1. Will increases in government spending financed by borrowing help promote a strong recovery from a severe recession. Why or why not? 2. Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did
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Homework Problem Set 4 1. Because Q=12-2P inverse demand P = -0.5 Q+6 For “half price” case‚ P = 2.5‚ Q=7 consumer surplus = 7*(6-2.5)/2 = 12.25 For “buy one‚ get one free” case‚ when original P = 5‚ Q = 4 instead of 2‚ total benefit TB = (4+6)*4/2 = 20 On the other hand‚ payment is 2*5=10 dollars‚ so consumer surplus will be = 10 Thus “half price” gives more surplus. 2. cost minimizing manner‚ marginal product of typewriter/marginal product of word processor=rent of typewriter/rent
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Problem Set 5 Complete all questions listed below. Clearly label your answers. 1. What impact will an unanticipated increase in the money supply have on the real interest rate‚ real output‚ and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. An unanticipated increase in the money supply will have a significant negative or positive impact on different areas of the economy. Real interest rate will decrease in the short run when money
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Econ 122A Problem Set 6 Name(Print)______________________ Due in class on March 14 UCI ID_____________________________ 1. In class‚ we have talked about the following simple wage equation wage = α + β female + u ‚ where female is a dummy that is equal to 1 if female‚ and 0 otherwise. ˆ ˆ Given the OLS estimates α and β for the above model‚ what are the OLS estimates ˆ ˆ for a model with a male dummy instead of a female dummy
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