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1. Based on the simple linear equation given below answer the following questions.
y=a+Bx+e
a. Write the dependent variable------.
b. Write the error term----------.
c. Write the intercept-------------.
d. Write the explanatory variable----------
e. Write the slope -----------. How do you interpret it?
1. What are the steps (methodology) that we need to follow in econometric analysis?
v> Combination
Tablet (units) Coffee (units)
A 0 10,000
B 100 9,000
C 200 7,500
D 300 5,500
E 400 0
Find the opportunity cost incurred by the economy to change production from
combination B to D.
(2 marks)
winning Birr 10,000 with a utility of 10 utils, and a 40% probability of winning Birr 15,000 with
a utility of 12 utils.
A. What will be the expected income and expected utility of the consumer?
B. If the utility of this consumer from a risk free alternative which gives him an income equal
to the expected income of the risky alternative given above is equal to 11 utils, is this
consumer risk lover or risk averse? Why? Illustrate your answer with the help of a diagram
commodity is 5 Birr per unit. Mention if the demand is price elastic or inelastic at this point.
the income of the consumer is 1200 Birr, find the amounts of X and Y that the consumer chooses
to consume so as to maximize his utility.
of both commodity X and commodity Y by the same proportion? Explain your answer with the
help of graph(s).
(1). Explain what “equity” means as it relates to taxation.
(2) Discuss the two general equity standards of “benefits received” and “ability to pay.” Explain what each of these terms mean and how each impacts taxation.
(3) Define “horizontal” equity and “vertical" equity and explain how each impacts taxation. .
(1). Explain cost-benefit analysis. (2) Identify and explain the steps in performing a cost-benefit analysis.
· (1) Explain the difference between tax impact and tax incidence.
· (2) Identify and explain the three forms of shifting that can occur with tax incidence.
#333702 on Dec 2022