If an indifference curve were concave instead of convex to the origin, what implication would that have if the consumer reduces consumption of one good but still wants to enjoy the same level of utility in a two-good world?
What will be an ideal response?
Essentially it would mean that the consumer would not need as much of the second good to compensate him for his reduction in the consumption of the first good.
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To estimate dynamic causal effects, your textbook presents the distributed lag regression model, the autoregressive distributed lag model, and a quasi-difference representation of the distributed lag model with autoregressive errors
Using a simple example, such as a distributed lag model with only the current and past value of X and an AR(1) model for the error term, discuss how these models are related. In each case suggest estimation methods and evaluate the relative merit in using one rather than the other. What will be an ideal response?
Suppose the total population of an economy is 150 million, the labor force is 100 million, and the unemployment is 94 million. The unemployment rate is _____
a. 6 percent b. 80 percent c. 94 percent d. 10 percent e. 15 percent
The benefits to specialization are even greater when two trading partners have:
A. absolute advantages in producing the same goods. B. large differences in opportunity costs. C. very similar opportunity costs. D. similar consumption preferences.
The price of Y is $10.According to the above figure, if the price of X is $5, what combination of X and Y will a utility-maximizing consumer choose?
A. 120X, 250Y B. 200X, 620Y C. 80X, 20Y D. 120X, 620Y E. none of the above