Category: Economics

EconometricsINSTRUCTIONS: For your convenience, I have typed all the homework questions here so thatyou may fill in your answers below (after YOUR ANSWER HERE) and turn this in foryour assignment. Feel free to copy and paste any symbols, Greek letters, etc. from thequestions into your answer. Actually, my primary goal in doing this is to make that parteasier for you. Note that I wasn’t able to figure out how to neatly put ?(()) over top of avariable, so for purposes of the homework and exams putting it right after the variable isfine. For example, this works for beta hat: β?. If it has a subscript, you can do either ofthese: β1? or β??(1).
Chapter 5 (17.5 pts)
Using the techniques of Section 5.3, test the following two-sided hypotheses:
For Equation 5.4, test the hypothesis that:
H0: β3=0
HA: β3≠0
at the 1-percent level of significance. (1 pt)
YOUR ANSWER HERE:
For Equation 5.6, test the hypothesis that:
H0:β2=0
HA:β2≠0
at the 5-percent level of significance. (1 pt)
YOUR ANSWER HERE:

Visa and Mastercard dominate the global payment processing industry, competing to attract cardholders and bank partnerships. Each company must decide whether to increase spending on credit card rewards programs (such as cashback and travel points) or maintain their current spending levels.• If neither company increases spending on rewards, each will earn a profit of $18 billion.• If both companies increase spending on rewards, each will earn a profit of $14 billion due to higher costs.• If one company increases rewards while the other does not, the company that offers better rewards will attract more customers and earn a profit of $21 billion, while the other company earns only $10 billion.(a) Construct a payoff matrix to represent this strategic decision.(b) If Visa and Mastercard could sign an enforceable contract, what would be the cooperative solution?(c) If they cannot make an enforceable agreement, what is the Nash equilibrium of this game? Explain why this outcome is likely.

Consider the following scenario when answering the neat two questions:Imagine a television game show where one lucky contestant is presented with four upside-down buckets numbered 1,2,3, and 4. Under one of the buckets is $10,000. Under each of the other three buckets is $20. After the game ends, the contestant will receive the amount of money under his or her bucket.
The host of the game show asks the contestant to choose one of the four buckets. After the contestant makes a choice, the host lifts up two of the remaining three buckets to reveal $20 under each of them. At this point, only two buckets remain uncovered: the bucket the contestant originally chose and the bucket that was not uncovered by the host.
The host subsequently asks the contestont if he or she would leke to keep the original bucket or change buckets to the anly other remaining bucket.If the contestant does not change buckets and stays with the original bucket, what is the expected value of the game?$4.650$3760$7.705$2.515$1725

A presidential candidite emerges Inom a rew minor party that supports radical chargess to the fational governmenl. This candidate challenges the candides from the lwo mayor parties (Democitic and Pepublicir)In alnost al states, the canclidite who secetves a pluraily of popilar voles also receves all of the electional votes for that state. On Election Day, the liwo major palty candidates divide al of the clecional voless, the mporparty candidate does not recetve a platity in any state.What does the scenaro Austrade about the plurality syalime of efections in the Unided Stubes?
T entront that the governmert wit be controled by whictever party wins the presideritial election.
It creates opportinties for minor parties lo have an mportant impact on the national goverrmert’s palcien.
it perpetuabes the fiop pally syilem because minorperties de not attract a mede erough range of sepporters lo win.
Eensues that the same grvernment policies wil contrue becuise thost voters ave rof interented in fere ichas.

Using data in GPA2.RAW, the following equation was estimated N=4,137,R2=.0858The variable sat is the combined SAT score, hsize is size of the student’s high school graduating class, in hundres, female is agender dummy variable, and black is a race dummy variable equal to one for blacks and zero otherwise.
Is there strong evidence that hsize ?2 should be included in the model? From this equation, what is the optimal high school size?
Holding hsize fixed, what is the estimated difference in SAT seore between nonblack females and nonblack males? How statistically significant is this estimated difference?
What is the estimated difference in SAT scores between nonblack males and black males? Test the null hypothesis that there is no difference between their scores against the alternative that there is a difference.
What is the estimated difference in SAT score between black females and nonblack females? What would you need to do to test whether the difference is statistically significmt?

In the Friedman–Lucas money surprise model
Suppose that the central bank wants to reduce the price level. Suppose the central bank has two options: (i) announce in advance that the money supply will decrease; (ii) surprise the public with a decrease in the money supply. Which option is preferable? Choose the option that best describes the correct conclusion and reasoning.
Choice 1 of 4: Option (i) is preferable because it decreases the price level, whereas option (ii) increases it.
Choice 2 of 4: Option (ii) is preferable because it decreases the price level, whereas option (i) does not affect the price level
Choice 3 of 4: Option (i) is preferable because the decrease in the price level under option (i) will be greater than that under option (ii), and option (ii) involves a decrease in output
Choice 4 of 4: Option (ii) is preferable because the decrease in the price level under option (ii) will be greater than that under option (i), and option (i) involves a decrease in output

➤ Why does Oxfam argue reparations should come from the richest individuals and corporations linked to colonialism?
Oxfam argues reparations should target the richest individuals and corporations because historical evidence links colonial extraction to concentrated private gains. Wealth, land and corporate profits flowed to elites. Targeted taxes, corporate accountability and reparative funds aim to address persistent inequality and restore resources to former colonies and affected communities.

Publicly held debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System.
In June 2007, the publicly held debt as a percentage of total national debt was .In June 2007, the percentage of the U.S. national debt held by foreigners was .
The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of Americans.
Between 2007 and 2011, the fraction of the national debt held by foreigners .
The absolute level of the debt does not necessarily provide a clear indication of a nation’s debt burden. Thus, economists often look at relative measures of the national debt.
One possible relative measure of the national debt is the federal debt held by the public (outside the federal government and the Federal Reserve) as a percentage of GDP.
In 2007, publicly held debt was of GDP. Between 2007 and 2011, publicly held debt as a percentage of GDP .