ECON MACRO
ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
Question
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Chapter 18, Problem 1.2P

Sub-part

A

To determine

To Determine: the entry that will be recorded in balance of payments when a Hong Kong financier purchases some U.S corporate stock.

Sub-Part

B

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S tourist in paris purchases some perfumes.

Sub-Part

C

To determine

To Determine: the entry that will be recorded in balance of payments when a Japanese company sells machinery to a pineapple company in Hawaii.

Sub-Part

D

To determine

To Determine: the entry that will be recorded in balance of payments when U.S framers gave food to the children in Ethiopia that were starving.

Sub-Part

E

To determine

To Determine: the entry that will be recorded in balance of payments when the U.S Treasury sells a bond to a Saudi Arabian prince.

Sub-Part

F

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S tourist flies to France on Air France.

Sub-Part

G

To determine

To Determine: the entry that will be recorded in balance of payments when a U.S company sells insurance to a foreign firm.

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How to calculate total cost?
Problem 1-Experiments/Randomized Control TrialSuppose you are interested in studying the effect of being a part of the labor union on anindividual’s hourly wage.You collect data on 1000 people and run the following regression. where is a dummy variable which is equal t to 1 for people who are a part of labor union and0 for others. a. Suppose you estimate . Interpret b. Do you think is biased or unbiased? Explain. Now suppose you conduct a randomized control trial to answer the same question. Yourandomly assign some individuals to be a part of the labor union and others to not be a partof the labor union. The first step you take is to ensure that the randomization was donecorrectly. Then you estimate the following equation: =1 if the student is assigned to be a part of Labor Union=0 if the student is assigned to not be a part of Labor Union c. Why is it important to ensure that the randomization is done correctly? d. Name any two variables that you can use to test if Treatment and…
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