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discuss how bank behaviour and the Fed’s behaviour may have caused money supply growth to be pro-cyclical before the crisis. What has changed since 2008-09?
If we were to say that two variables are positively related, this means that:
a) The relationship between the two would graph as a line sloping downward.
b) The relationship between the two would graph as a horizontal line.
c) The relationship between the two would graph as a line sloping upward.
d) The relationship between the two cannot be depicted graphically in any simple way.
Regression without any regressor: suppose you are given the model Yi=ß1+ui
use Ols to find the estimator ß1.what is its variance and the RSS? Dose the estimated ß1 make
intuitive sense?
What are the various principles of apportionment of overheads? Explain and give examples of the bases used for apportionment and reapportionment.
QUESTION 1 (20)
In each of the following cases only one answer is correct. Write the letter that represents the correct answer,
next to each number. E.g. 1.11 a
1.1 Which one of the following statements is false?
a) Choice is necessary because of limited wants.
b) The means available to satisfy wants are limited.
c) The wants of human beings are unlimited.
d) The opportunity cost of producing a given commodity is the value of the best forgone alternative which
could have been produced with the factors of production used in its production.
economic choices are influenced by the availability of factors of production.
Is this true or false
What are the determinants (factors) that could cause a demand curve or market demand curve to shift?
If you buy a car for $10,000 with a 3year loan at 8%interest, what is the total interest on the loan ?
The Teenager Company makes and sells skateboards at an average price of $70 each. During
the past year, they sold 4,000 of these skateboards. The company believes that the price
elasticity for this product is about −2.5. If it decreases the price to $63, what should be the
quantity sold? Will revenue increase? Why?
law of demand:
1. EJ'S restaurant wanted to increase its lunch business. The owners distributed coupons good for $1 off every lunch order, Business increased by 25 percent. It is: ____ Because:____
2. American Eagle clothing store has a successful two for the price of one sale. THe owners next tried three for the price of one sale on remaining clothes. This sale was not nearly as successful. It is:___ Because:____
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