Tag: Economics – Others

A researcher is interested in the effect on test scores of computer usage. Using school district data, she regresses district average test scores on the number of computers per student.
Part 2
What are possible sources of bias for β̂1 (the estimated effect on test scores of increasing the number of computers per student)? For each source of bias below, determine whether β̂1 will be biased up or down.
Average income per capita in the district. If this variable is omitted, it will likely produce a(an)
______
bias of the estimated effect on test scores of increasing the number of computers per student.
The availability of computerized adaptive learning tools in the district. If this variable is omitted, it will likely produce a(an)
______
bias of the estimated effect on test scores of increasing the number of computers per student.
The availability of computer-related leisure activities in the district. If this variable is omitted, it will likely produce a(an)
______
bias of the estimated effect on test scores of increasing the number of computers per student.

At the Stratford Festival Thealre no reservations are accepled on the day of the performance; at matinees, reservations are accepled, at opening night perfornances reservations are esseriki. Describe the method of allocating seats in these three performances. Why do you thirk the Stratford Feutival Thealte has different reservations polcies?
On the day of the performance, Stratford Festival Theatre allocates seals by ◻
A. majority rule
B. first-come, first-served
C. personal characteristics and first-come, first-served
D. a command system; a combination of a command system and first-come, first-served
At matinees, Stratford Festival Theatre allocates seals by ◻
A. majority rule
B. first-come, first-served
C. personal characteristics and first-come, first-served
D. a command system; a combination of a command system and first-come, first-served
At opening night performances, Stratford Festival Theatre allocales seats by ◻
A. majority rule
B. lottery
C. personal characteristics
D. first-come, first-served
Stratford Festlval Theatre uses different allocation policies because theatre patrons who althend opening night place a ◻ value on time, while theate patrons who want sciests on the day of the performance place a q, value on time.
A. low, high
B. highclow
C. low, low
D. high; high

Comparative and absolute advantageDavid and Morgan are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest.
Production per acre
Zucchini
(Pounds per acre)
Watermelon
(Pounds per acre)
David
6
2
Morgan
8
4
On the following graph, use the blue line (circle symbol) to plot David’s production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan’s PPF.◻ has an absolute advantage in the production of zucchini, and ◻ F. has an absolute advantage in the production of watermelon.David’s opportunity cost of producing 1 pound of watermelon is ◻ pounds of zucchini, whereas Morgan’s opportunity cost of producing 1 pound of watermelon is ◻ pounds of zucchini. Because David has a ◻ opportunity cost of producing watermelon than Morgan,◻ has a comparative advantage in the production of watermelon, and ◻ has a comparative advantage in the production of zucchini.

Q5. To increase total output while maintaining investment expenditures, the policymakers should_____. A) B) C) D) adopt an expansionary monetary policy but keep fiscal policy unchanged. adopt an expansionary monetary policy and an expansionary fiscal policy. adopt an expansionary monetary policy and a contractionary fiscal policy. keep monetary policy unchanged but adopt a contractionary fiscal policy. e) None of the above.
Q6. Expansionary fiscal policy is less effective in increasing output: a. if investment is very sensitive to interest rate b. if money demand is very sensitive to income c. if money demand is very sensitive to the interest rate d. in two of a-c e. in all of a-c
Q7. [True or False] If money demand does not depend on income, the LM curve is horizontal and the fiscal policy is very effective in changing output.
Q8. [True/False] If money demand is highly insensitive to the interest rate, the LM curve is very steep and monetary policy is highly ineffective in changing output.
Q9. [True/False] Consider two points on a fixed LM curve. At the point located higher, people want to hold a larger amount of money than at the one located lower.

Which of the following statements is true about money laundering?
A) It ends with the collection of dirty money from drug barons.
B) It is ranked last on the list of transnational crimes by the United Nations.
C) It usually involves the physical transfer of cash out of a country.
D) It usually begins with the layering of dirty money in an economy.
No other form of transnational and organized crime is as costly in terms of human suffering and national financial burden as theA) illegal trade in arms.B) trafficking of young children by pimps.C) mass killing of people by sea pirates.D) illicit trade in narcotic drugs.
19 ◻ are the major criminal offenses so designated by the community of nations for the protection of interests common to all humankind.
A) Intranational crimes
B) International crimes
C) Worldwide crimes
D) Global crimes
In the context of the categories of transnational criminality that emerged from a report by the United Nations, which of the following categories ranks number one on the list because of its massive impact on the global economy?
A) money laundering
B) terrorist activities
C) illicit traffic in arms
D) aircraft hijacking

3. Agreement and disagreement among economists
Suppose that Andrew, an economist from a college in Pennsylvania, and Beth, another economist from a university in Florida, are both guests on a popular science podcast. The host of the podcast is facilitating their debate over saving incentives. The following dialogue represents a portion of the transcript of their discussion:
Beth:
I think it’s safe to say that, in general, the savings rate of households in today’s economy is much lower than it really needs to be to sustain an improvement in living standards.
Andrew:
I think a switch from the income tax to a consumption tax would bring growth in living standards.
Beth:
You really think households would change their saving behavior enough in response to this to make a difference? Because I don’t.
The disagreement between these economists is most likely due to .
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
Minimum wage laws do more to harm low-skilled workers than help them.
Tariffs and import quotas generally reduce economic welfare.
Lawyers make up an excessive percentage of elected officials.

Very Short Answer Question
1. What is economics?
2. Define substitute goods.
3. Define complementary goods.
4. Make a list of factors of production.
5. What is meant by demand?
6. Define supply.
7. What is equilibrium price?
8. Define elasticity of demand.
9. Define price elasticity of demand.
10. Define income elasticity of demand.
11. Define cross elasticity of demand.
12. Define elasticity of supply.
13. Define utility.
14. Define total utility (TU).
15. What is meant by marginal utility(MU) ?
16. Define consumer’s surplus.
17. Define producer’s surplus.
18. Define production.
19. What is meant by production function?
20. Define total product (TP) with formula.
21. Define average product (AP) with formula.
22. Define marginal product (MP) with formula.
23. What is macroeconomics?
24. Point out any four macroeconomic variables.
25. Define closed economy.
26. Define open economy.
27. What is national income?
28. Define Gross Domestic Product (GDP)?
29. Define personal income (PI).
30. Define personal income (DI) with formula.
31. Define per capita income (PCI) with formula.
32. Define GDP deflator.
33. What is money?

The Federal Reserve Bank always had the legal authority and the ultimate power as the chief regulator of banks to stop all the crazy sub-prime mortgage lending that occurred between 2002 to 2008 from banks like Countrywide and Washington Mutual, but the Fed did nothing to stop it. This will probably go down in economic history as an example of a monetary policy failure.
Multiple Choice
This is true. As the chief regulator of banks the Fed always had the power to stop or change the reckless lending practices of banks during the time of 2002 to 2008.
Only the FDIC and the Office of Thrift Supervision regulatory agencies could have stopped all commercial banks from doing sub-prime mortgage loans.
Only these two agencies working together could have stopped sub-prime mortgage lending.
Only the U.S. Congress had the authority to order banks to halt sub-prime lending. Only the Senate Banking Committee and the House Financial Oversight Committee acting together could have brought this proposal to the U.S. Congress. Only the U.S. Congress can change underwriting practices.
This is false. The Fed didn’t have the power or authority to stop banks from doing this kind of lending.

Listed below are a number of statements relating to the death of two or more persons.
Where two or more people pass away, the time and sequence of deaths may be important in order to establish who may be entitled to the insurance proceeds.
Joint life insurance policies insure more than one person and pay upon the death of both the first or the second insured person.
If the joint insured persons die in an accident where it is not possible to prove who died first or last, the policy may state who is presumed to have died first.
The insurer may have no need to dispute that the insurance benefit is payable, since there is conclusive evidence that the life insured has died. However, the insurer may have trouble determining who the beneficiaries are.
If insurers have difficulty in determining who the beneficiaries are, a provision in provincial and territorial insurance legislation allows the insurer to pay the benefit into Court.
Payment of claims into the court does not release the insurer from liability.
Which of the above statements are correct?
Select one:
3,4,5,6
1,2,3,5
1,2,3,4,5,6
1,3,4,5

In 2022, Germany had a balance of trade surplus of E111.9 blition. In that year, Germany’s exports of goods must have been ◻ ts imports of goods. In 2022, Germany had a current account surplus of € 162.3 billion. Is it possible for Germany’s current account surplus to be layger than its trade surplus?2. No, There it of trate supher, the curent eccount suphus must always be smaller.B. Yes, as long as the sum of the other components in the current account offer than trade was positive.C. Yes, as long as the sum of the other componerts in the current account other than trade was negative.D. Yes, if flere is a trade surplus, the current account suphas will always be larger.
No, There it of trate supher, the curent eccount suphus must always be smaller.
Yes, as long as the sum of the other components in the current account offer than trade was positive.
Yes, as long as the sum of the other componerts in the current account other than trade was negative.
Yes, if flere is a trade surplus, the current account suphas will always be larger.
In 2022, would we expect Germany’s financial account balance to have been -6162.3 billion?
No, even If we assume a zero balance on the capital account and no statistical discrepancy.
Yes, because the statistical discrepancy can always be ignored.
Yes, If we assume a zero balance on the capital account and no statistical discrepancy.
No, because there are ofter litems in the balance of payments such as net transfers and net income on investments.