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- In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from y = 0.98x2.1for one year to y = 0.32x2 + 0.68x for the next year. Find the Gini coefficient of income for both years. (Round your answers to three decimal places.) after beforedf between = df within = F Critical = SS Between = SS within = MS between = MS within = F = R^2= Fail to reject the null or reject the null hypothesis?For the production function Q (K,L)= 1000 (KL3 )1/3 , Given the current input level K = 400 and L = 40. Use marginal analysis to estimate the approximate change in output which results form an increase in K of 9 units and a decrease in L of 7 units. Verify that Young′s Theorem holds?
- The Lorenz curves for the income distribution in the United States for all races for 2015 and for 1980 are given below. 2015: y = x2.661 1980: y = x2.241 Find the Gini coefficient of income for both years. (Round your answers to three decimal places.) 2015: 1980:2. The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short-run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC = dollars per vacuum cleaner and Q = number of vacuum cleaners produced each month. Total fixed cost each month is $180,000. The following results were obtained: DEPENDENT VARIABLE: AVC R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 19 0.7360 39.428 0.0001 PARAMETER STANDARDVARIABLE ESTIMATE ERROR T-RATIO P-VALUEINTERCEPT 191.93 54.65 3.512 0.0029 Q - 0.0305 0.00789 23.866 0.0014 Q2 0.0000024…a) Find the marginal pmfs of X and Y b) Find the conditional pmf of X given Y = 1