EBK MODERN PRINCIPLES OF ECONOMICS
3rd Edition
ISBN: 9781319030926
Author: COWEN
Publisher: YUZU
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Chapter 26, Problem 1FT
To determine
The countries with the highest and second highest
Expert Solution & Answer
Explanation of Solution
Gross domestic product is the money value of all final goods and services produced within the political territory of the country in a financial year. Thus, according to the table of the GDP of the countries, the United States has the highest GDP with $14,447 and the highest GDP per capita. While going for the second nation with the highest GDP, it is China with $10,807 whereas the country with the second highest GDP per person is Canada with the value of $46,569.
Economics Concept Introduction
Concept introduction:
Gross Domestic Product: The gross domestic product is the money value of all the final goods and services produced within the domestic territory of the nation in a financial year.
GDP per person: GDP per person is the total GDP value of the country divided by the total population of the country. It is used to compare the performance of two countries.
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2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.
3. Consider the following estimated regression equation, estimated using a sample of firms, where RDis total firm spending on research and development in USD ($), Revenue is total firm revenuein USD ($), and W ages is the firms’ total spending on wages in USD ($) (standard errors inparentheses):RDd = 1000(600)+ 0.5(0.1)Revenue + 1.5(0.5)W ages,(a) Interpret the coefficients on each of the explanatory variables. (b) Which of the three coefficients are statistically significant at the 5% level of significance? Howdo you know? A researcher runs a two-sided statistical test of the null hypothesis that both the coefficients onthe explanatory variables above are jointly equal to 0.25 (mathematically, that β1 = β2 = 0.25),and reports a p-value of 0.045.(c) What does this p-value mean for the outcome of the test? (d) What would an appropriate two-sided alternative hypothesis look like?
Chapter 26 Solutions
EBK MODERN PRINCIPLES OF ECONOMICS
Ch. 26 - Prob. 1FTCh. 26 - Prob. 2FTCh. 26 - Prob. 3FTCh. 26 - Prob. 4FTCh. 26 - Prob. 5FTCh. 26 - Prob. 6FTCh. 26 - Prob. 7FTCh. 26 - Prob. 8FTCh. 26 - Prob. 9FTCh. 26 - Prob. 10FT
Ch. 26 - Prob. 11FTCh. 26 - Prob. 12FTCh. 26 - Prob. 1TPSCh. 26 - Prob. 2TPSCh. 26 - Prob. 3TPSCh. 26 - Prob. 4TPSCh. 26 - Prob. 5TPSCh. 26 - Prob. 6TPSCh. 26 - Prob. 7TPSCh. 26 - Prob. 8TPSCh. 26 - Prob. 9TPSCh. 26 - Prob. 10TPSCh. 26 - Prob. 11TPSCh. 26 - Prob. 1CCh. 26 - Prob. 2CCh. 26 - Prob. 3CCh. 26 - Prob. 4C
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