Give at least three examples from economics where each of the following type of data can be used: cross-sectional data, time series data, and panel data
What will be an ideal response?
Answer: Answers will vary by student. At this level of economics, students most likely have heard of the following use of cross-sectional data: earnings functions, growth equations, the effect of class size reduction on student performance (in this chapter), demand functions (in this chapter: cigarette consumption); time series: the Phillips curve (in this chapter), consumption functions, Okun's law; panel data: various U.S. state panel studies on road fatalities (in this book), unemployment rate and unemployment benefits variations, growth regressions (across states and countries), and crime and abortion (Freakonomics).
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Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) producer surplus will fall from $13 to $3. B) consumers will buy no polo shirts. C) there will be a shortage of polo shirts. D) the marginal cost of producing the third polo shirt will increase to $25.
The continued position of the United States as the world's economic leader is:
a. assured b. predictable c. automatic d. uncertain
Nancy's utility of wealth curve is given in the above figure. Option A gives Nancy $100 for sure. Option B gives Nancy $50 half the time and $150 half the time. Nancy's expected utility of option A
A) is greater than the expected utility of option B. B) is the same as the expected utility of option B. C) is less than the expected utility of option B. D) could be either greater or less than the expected utility of option B.
Refer to Table 2-9. If the two countries specialize and trade, who should export wristwatches?
A) Thailand B) They should both be importing wristwatches. C) Japan D) There is no basis for trade between the two countries.