i Suppose that the economic model is wage = Bo+B₁exper+B₂exper² + ε. In the terminology of this class, is this a linear model? ii Suppose that the economic model is wage = 80+ experi Bo In the terminology of this class, is this a linear model? + E.
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- As described in the article entitled "The Thomy Economics of legal immigration, Arizona adopted legislation that restricted (by as much as 40%) the number of legal immigrants coming into the state. This had the economic effect of OA Reducing Arizona's GOP but had the intended effect of atering production processes as employers hired more workers OB increasing overall output in the state as the supply of goods increased (as costs were falling) C Reducing Arizona's GDP OD. Decreasing the wage rates for and increasing the total employment of unsalted labor in the s1. What is a market-clearing model? When is it appropriate to assume that market clear? 2. Use the model of supply and demand to explain how fall in the price of frozen yogurt would affect the price of ice cream and the quantity of ice cream sold. In your explanation, identify the exogenous and endogenous variables. 3. Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years. Goods Hot dogs Hamburgers Quantity (2010) 200 200 Price (2010) $2 $3 Quantity (2020) 250 250 Price (2020) $4 $4 Using 2010 data as the base year Compute the following statistics for each year. Nominal GDP, Real GDP, GDP Deflator, Inflation rate using GDP deflator, CPI, Inflation rate using CPI. (Hint: i) to calculate CPI use base year fixed quantity Hot dogs 200 and Hamburgers 200, ii) To calculate inflation rate, use percentage change in price level between two years.)10. Suppose in our model, lifespans increased due to a productivity in- crease. What would likely happen to hours worked and leisure over the lifetime of a represent ative consumer. (a) Let's consider one of two common ways of implementing this change. Suppose the increase raised both lifespans and the amount of years consumers are healthy enough to work by the same amount, how would that likely affect the measured numbered of hours work by prime aged adults within a given year? What would likely hap- pen to the retirement age? (b) Let's consider the other way to implement it. Suppose the change in lifetimes came about changes in technology that delayed death but did not extend the amount of years consumers are healthy enough to work. What would likely happen to hours worked within a year? What would happen to the retirement age? (c) In the US, the generalized stylized fact is that the actual age of retirement is not increasing. Nor are hours worked per week. Why are both of the above…
- See Figure 2.2 and examine the model. Unlike other circular flow models, this model is missing another sector/s. what is the missing sector?Let's assume that prices substantially increased over the past year. How do you expect this will affect people's buying behavior? Be sure to tie this back to economic concepts discussed in this course. Time Atten 33 M.The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Households purchase in factor markets. firms Suppose Lucia earns $900 per week working as an in r for Ourhouse. She uses $8 to go climbing at Wally's Climbing Wall. Wally's Climbing Wall pays Kenji $350 per week to work as households ctor. Kenji uses $400 to purchase furniture from Ourhouse. Event Lucia spends $8 to go climbing. Kenji spends $400 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market
- The accompanying table shows the average annual wage for a country, in thousands of dollars, for selected years from 1970 and projected to 2040. a. Find an exponential function that models these data, with x equal to the number of years after 1970 and y equal to the average annual wage in thousands of dollars. b. Graph the model and the data on the same axes. c. What does the model predict that the average annual wage will be in 2030? Is this interpolation or extrapolation? d. When does the model predict that the average annual wage will reach $230,000? a. The equation of an exponential function that models the data is y=. (Use integers or decimals for any numbers in the expression. Round to three decimal places as needed.) b. Graph the model on the same axis as the data. Choose the correct graph below. All graphs are shown in a [0,70,10] by [0,250,50] viewing window. OA. OB. c. According to the model, the average annual wage in 2030 will be $ thousand. (Round to one decimal place as…• P= price per tutoring session in ECON101. • P = price per tutoring session in Mathematics, which is 46.5. • P = price per tutoring session in Kazakh Literature, which is 27. ./= income of ECON101 students, which is 388. • P= average opportunity cost of senior Economics students for giving private tutoring sessions in ECON101, which is 34. The equations that represent the demand and supply schedules respectively are: Q=-0.8 P- Pm+2P+0.51 Q=1.91 PP. + 30 Note: in all your calculations in this question, use a precision for your decimals of up to four decimal digits. When writing your answers, again, use up to four decimal digits if needed. The equilibrium price is: $ The equilibrium quantity is: The point price elasticity of demand at the market equilibrium, in absolute value, is: The point price elasticity of supply at the market equilibrium, is: Determine the cross-price elasticity of tutoring sessions for ECON101 with respect to the price of tutoring sessions for mathematics: What…Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket’s total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Quantity in Basket 2020 2021 2022 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Streaming services 1 64 64 104 134 Iced coffees 150 2 300 2 2 Textbooks 10 80 800 85 105 Notebooks 8 2 16 2 4 Energy drinks 40 3 120 4 5 Total cost 1,300 Price index 100 Suppose this price index uses 2020 as the base year. In the last row of the table, calculate and…
- Recall the power law: Y=kX-a or equivalently logY=logk-alog.X Suppose that using the data, you plug in households' incomes into X, and the percentile of the households when ranked by incomes into Y. You find that a=1. Which of the following are true? Question 3 Select one or more: a. In the longer-run, the slope, a, is likely to become higher than 1. b. Incomes should follow a log-normal distribution, so the distribution of log(incomes) should have a bell-shape. c. The slope, a=1, indicates that the U.K. is in a long-run steady state. d. Incomes explode proportionately at the top with rank, so logging them by rank makes it easier to understand the income differences between very rich people. e. A smaller value of a means less income concentration.Consider the possibility that government spending increases the amount of hours to be worked in a given time period, say by providing child care. Assume again that the initial amount of consumption and leisure are still just affordable after an increase in spending. How will an increase in government spending affect consumption, hours worked, output and welfare? [Hint: This exercise requires creatively reinterpreting how we apply our model to the data. Think about how we constructed the bounds on our labor/leisure model in terms of hours worked. Remem- ber our model does not have any sleep requirements built into it for instance.]