Tag: Economics – Others

We use the following regression modelD=β1+β2P+β3PC+uto study the effect of changing a product’s sales price P on the demand of the product D fora home company.In the regression, sales price of a similar product by the home company’s competitor,denoted by PC, is also considered.How would you interpret coefficient β2 ?
A unit increase of the home company’s price would change the demand by β2, if the competitor would not change their price.
A unit increase of the competitor’s price would change the demand by β2, taking into account that the home company would change their price in reaction to the competitor’s price change.
A unit increase of the competitor’s price would change the demand by β2, if the home company would not change their price.
A unit increase of the home company’s price would change the demand by β2, taking into account that the competitor would change their price in reaction to the home company’s price change.

VoiceWhat effect does your voice have on others? Does it persuade or irritate, attract or repel? One of the worst qualities is harshness. If y the teeling that people are uncomtortable when you speak, it may be that your harsh tones are jarring their eardrums. Your voice will sound un is shria, grating, hard, piercing, brassy, too loud, or too nasal. Harsh voice qualities usually come from too much tension in the throat and jaw. bightens muscles and blocks the relaxed voice tones essential to a pleasing impression. Because tension occurs in higher pitched volces, wome have shriller volces than men, which usually makes them less desirable public speakers, newscasters, or political candidates.What is stoted in this paragraph?
A Relaxed people often heve harsh voices.
B Women make less appealing political candidates.
C Some men have harsh voices.
D Not everyone tinds a harsh volve irritating.

A hospital is evaluating the operating costs of a newly acquired MRI machine. The projected annual cost for electricity, cooling, and scheduled maintenance is $3 million, expressed in today’s dollars (i.e., constant-dollar). The machine is expected to remain in operation for five more years. The market interest rate is estimated to be 8% per year. The table below provides Consumer Price Index (CPI) values from year 0 to year 5, which should be used to calculate the annual general inflation rate.
Determine the present worth of the MRI machine’s operating costs using actual-dollar analysis. This means you must convert constant-dollar costs to actual dollars for each year, accounting for inflation, and then discount them to the present. Note: Answers based on constant-dollar analysis will receive no credit. Be sure to use the CPI values for inflation adjustment before computing the present worth.

1.
The table below shows Jerry’s total utility from burgers and magazines. The price of a burger is $2, the price of a magazine is $4, and Jerry has $12 to spend. Table 1
Draw Jerry’s budget line and calculate the relative price of burgers and magazines.
Describe how the budget line changes if, other things remaining the same,
The price of a magazine falls.
Jerry’s budget for burgers and magazines increases.
Calculate Jerry’s marginal utility per dollar from burgers when he buys 4 burgers a week.
Calculate Jerry’s marginal utility per dollar from magazines when he buys 1 magazine a week.
If Jerry buys 4 burgers and 1 magazine a week, does he maximize his total utility? Which good, if any, must he buy more of and which less of to maximize total utility? Explain your answer.
What quantities of burgers and magazines in a week maximize Jerry’s utility?

Department of Economics Econ 582-202502 Tutorial No. 1
Course Instructors:
Dr Caroline M. Khan
Import the following data in EViews:
macro_uk (Annul consumption expenditure by households (CONS), government expenditure (GOV), investment (INV) and GDP)
Pcocofea (Monthly data on the price of cocoa, coffee and tea)
Basic Data Handling:
Creating a work-file.
Different ways of importing Data/Verifying Data/ Examining data.
Descriptive statistics and correlations.
Histograms.
Graph and plots.
Variables generation and manipulation.
Using the data above:
Run the following regression using Pcocofea data:
L(pcocoa) c L(pcoffee) L(pcoffee(-1)) L(pcocoa(-1 to -3))
Where L denotes natural log.
Test the residuals from the above regression for
Autocorrelation.
Heteroskedasticity.
Generate a script file for all the above.

The UQ Economics Society is running a sausage sizzle at UQ. They sell sausages for $2 each and cans of soft drink for $1.50 each. Select the item from the list provided to make the following statements true.
2. Selling two sausages and a drink together for $5 is an example of 12. ✓
The market will be more if the UQ Economics Society sells two sausages and a drink for $5, with producer surplus decreasing and consumer surplus increasing. 5. ✓ The Economics Society’s would likely be reduced if the UQ Law Society decided to compete in the sausage sizzle market with reduced prices.
First degree price discrimination
Second degree price discrimination
Third degree price discrimination
Peak load pricing
Pricing power
Arbitrage
Inefficient
Collusion
Dominant
Dominated
Prisoner’s dilemma
Efficient

Why does demand not change when the price of a good changes with no change in the other influences on buying plans?
Consider the demand for onions.
The demand for onions does not change when a change in ◻ ocours.
A. The expected thate price of onions
B. Pe price of tomatoes (fomatoes are a complement of onions)
C. the population
D. the price of onions
An increase in the price of onions ◻
A. decrases the quantify of onlons demanded and results in a movernent up along the demand curve for onions
B. Increases the demand for onions and shifts the demand curve for onions rightward
C. decreases the demand for onions and shifts the demand curve for onions letward
D. Increases the quantity of onions demanded and results in a movement down along the demand curve for onions

Question content area
Part 1
A drug development company develops a new antiviral medication. It applies for a patent and for Federal Drug Administration (FDA) approval to sell it. The firm estimates that the patent application has a 60% chance of success and that FDA approval has a probability of 75%. If both applications are successful, the drug can be sold to a major drug producer for $88 million. If FDA approval is obtained but the patent application is unsuccessful, the drug can be sold for $66 million. If the drug is not approved by the FDA, it is worth nothing. What are the expected value and variance of this drug? (Work in units of $1 million.)
Part 2
The expected value (EV) of the medication is EV = 5.40 million. (Enter your response rounded to two decimal places.)
Part 3
The variance of the medication’s value is Variance = 25.02 million. (Enter your response rounded to two decimal places.)

The Federal Deposit Insurance Corporation was created in 1933 by the Franklin D. Roosevelt Administration. What did the Federal Deposit Insurance Corporation do to prevent runs on the banks?Question 17 options:
a) The Federal Deposit Insurance Corporation insured that depositors would be able to withdraw their deposits up to a stipulated amount –$10,000 in 1933 –which restored public confidence and stability to the banking system.
b) The Federal Deposit Insurance Corporation did not allow depositors to withdraw any money from their accounts in times of bank panics.
c) The Federal Deposit Insurance Corporation did not guarantee bank deposits, but instead declared that if the US government guaranteed the deposits of savers, it would only motivate bankers to be careless in the management of their bank.
d) The Federal Deposit Insurance Corporation caused the public to become less trusting of the stability of the US banking system.

Which of the following statements about marginal benefit are true?
1. The marginal benefit of a good or service is the benefit received from every unit consumed.
2. The marginal benefit of a good or service is the benefit received from consuming one more unit of it.
3. We measure the marginal benefit of a good or service by the most that people are willing to pay for an additional unit of it.
4. We measure the marginal benefit of a good or service by the least that people are willing to pay for an additional unit of it.