Economics of Enterprise Answers

Suppose Rockette and Zoot Horn can spend their days making cheese or planting beans. Their output per person per hour at each activity is the following:

Cheese

Beans

Rockette

7

160

Zoot Horn

6

120

Rockette has _____ in planting beans.

Select one:

A.

only the comparative advantage

B.

both the absolute advantage and the comparative advantage

C.

neither the absolute advantage nor the comparative advantage

D.

only the absolute advantage

If a 7 percent increase in price results in a _____ percent _____ in quantity demanded, everything else held constant, then it can be concluded that demand is price inelastic.

Select one:

A.

7; decrease

B.

less than 7; increase

C.

greater than 7; decrease

D.

less than 7; decrease

E.

greater than 7; increase

F.

7; increase

In not more than 2 pages discuss whether the gravity model predict Namibian exports.

Donald Trump engaged in a fierce tariff war with China. Using a diagram Justify Trumps action.

Problem 1 Let X 1 , X 2 , ⋯,Xn be a random sample from a normal distribution with mean µ and variance σ 2 . Consider e X as an estimator of e µ where X is the sample mean. Show that e is consistent estimator of e µ X .

Problem 1 Let X 1 , X 2 , ⋯,Xn be a random sample from a normal distribution with mean µ and variance σ 2 . Consider e X as an estimator of e µ where X is the sample mean. Show that e is consistent estimator of e µ X .

A random sampleY1 , Y 2 , ⋯,Yn is drawn from a distribution whose probability density function is given by: f (Y ) = βe − βY , Y  0 & β > 0 a). Obtain the maximum likelihood estimator (MLE) of β. (3 points) 1Econometrics- Assignment I b). Given that ∑ n Y i = 25 , ∑n Yi 2 = 50 , n = 50 calculate the maximum likelihood i =1 i =1 estimate of β. (3 point) c). Using the same data as in part (b), test the null hypothesis that β =1against the alternative hypothesis that β ≠1at 5% level of significance. (3 points) Problem 4 Suppose the production(Y) is determined as a function of labour input in hours (L) and capital input in machine hours (K). Using the Cobb-Douglas function

Show that the test taking the overall significance of regression model using ANOVA table to be expressed as: 𝑭 = 𝑹 𝟐⁄𝒌 − 𝟏 (𝟏 − 𝑹𝟐)⁄𝒏 − 𝒌 Where, R be a level of determination and k is the number of parameters in the n sampled regression model. (3 points

Let X1 , X2 , ⋯, XN be a random sample of size n from normal distribution with mean µ and variance σ 2 . a). Find the maximum likelihood estimator of σ 2  2 . (2 points) b). Find the asymptotic distribution of the maximum likelihood estimator of σ 2  2 obtained in part (a).

YI = β1X I 1 + β 2X I 2 + UI WhereUi ∼ NID (0, σu 2 ) , YI is observable random variable and theXij ' s , j =1, 2 are observable non-random (non-stochastic) variables. The data that follows is based on a sample of size N = 120 and gives the sums of squares and cross-products of the indicated variables Y X1 X2 Y 39 6 2 X1 6 4 0 X2 2 0 4 a). Compute the best linear unbiased estimates of the coefficients. (2 points) b). Give a 95% confidence interval for β1 . (2 points) Test the hypothesis H 0 : β1 + β2 = 1 against the alternative H 0 : β1 + β2 ≠ 1 at the 95% confidence level.