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Is the cobb-douglas function concave if a1 +a2 = 1 when
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- Find the inverse of the given matrix, if it exists. - 2 - 9 M = 9 40 Select the correct choice below and, if necessary, fill in the answer box to complete your choice. 40 - 9 - 1 А. М 2 -9 B. The matrix M 1 does not exist.Laffer curve In the 1980s, president Reagan based his tax and spending policies on supply side eonomics. The idea behind supply side economics is the marginal tax rate is so high it discourages work. Cutting the tax rate would end up increasing tax revenue. We develop a simple model of this idea to determine the restrictions on the utility function required to generate a Laffer curve. Let T denote the tax rate, w is the real wage rate and n the labor supply. The tax revenue is T=wnT where wn is labor income, which is the tax base. For convinience assume w is constant. There is no reason for this assumption to be true, but we impose it to focus on the restrictions on the utility function to generate the Laffer curve. As the tax rate T increases, workers substitute towards leisure and away from consumption. Hence as T rises, wn falls and tax revenues falls for high enough tax rates. Let U,V satisfy the standard assumptions. The model is static and households are endowed with one unit of…Econometrics Thomas Eisensee and David Stromberg wanted to measure how much news coverage of a foreign disaster impacted the amount of disaster relief provided by the U.S. government. They argue that the simple relationship would be biased. Let X = Minutes of News Coverage and Y= Disaster Aid. Choose a variable X2 that could bias the simple relationship. This variable should impact the amount of coverage and impact the amount of aid for reasons other than purely news coverage. Eisensee and Stromberg introduce an instrument Z = During the Olympics. Explain how Z could satisfy the relevant and exogenous criteria. Explain how you could use Z to estimate the impact of X on Y free from X2 bias. Hint: you should mention two stages.
- i need the answer quicklyA potential customer has described the following scenario to you:We need to keep track of the data that our manufacturing firm needs to run smoothly.We make a number of products, each of which is manufactured by a different de-partment. Products are made up of a number of parts. Parts are bought fromsuppliers.You have been asked to perform a preliminary analysis of the scenario:a) Identify four sets of values from the scenario. b) Identify three relations from the scenario. c) Draw an entity-relationship diagram to visualise the sets and relations you have identi-fied. d) Use the relations you identified in part b) to define the following:i) A relation that records the parts that a department needs. ii) A relation that records the suppliers that a department deals with===>Please explain correct and incorrect option A increase in the excise tax on gasoline: Multiple Choice 1.) lowers the price of gasoline by shifting the supply curve right. 2.) has no effect on the price of gasoline since the seller pays the tax. 3.) raises the price of gasoline by shifting the supply curve left. 4.) raises the price of cars by shifting the demand curve right. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Consider the following formula: y i - ( β 0 ^ + β 1 ^ x i ) . What does this formula describe? OLS slope estimator Error term Causal effect of x on y residualThe one-period model with quasi-linear utility predicts that a decrease in marginal income tax rates could increase tax collection if:Group of answer choices Substitution effects dominate income effects so that the percent change in taxes is greater than the percent change in GDP Substitution effects dominate income effects so that the percent change in taxes is less than the percent change in GDP Income effect dominate substitution effects so that the percent change in taxes is less than the percent change in GDP Income effects dominate substitution effects so that the percent change in taxes is greater than the percent change in GDPConsider the following least squares specification between test scores (Y) and income: Y = 607.8 + 5.32 In (Income). According to this equation, a 1% increase income is associated with an increase in test scores of A. 5.32 points OB. 53.2 points O C. 607.8 points D. 0.0532 points
- In the model 1n (Y;) =Po + B₁X₁ + μ₁, the elasticity of E(YX) with respect to X is: ОА. В1. B. cannot be calculated because the function is nonlinear. C. B₁x Bo+BqX OD. B₁X.A researcher estimates a model of CEO salary. She regresses this variable on CEO tenure and CEO tenure squared. The coefficient on those two variables are 20.29 and -1.14, respectively. Calculate the value of CEO tenure at which the impact of this variable on CEO salary is optimised..Create log(u^2 ) by first squaring the OLS residuals and then taking the natural log.
