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- Q1) Peter lives for three periods. He is currently considering three alternative education-work options. He can start working immediately, earning $100,000 in period 1, $110,000 in period 2 (as his work experience leads to higher productivity), and $90,000 in period 3 (as his skills become obsolete and physical abilities deteriorate). Alternatively, he can spend $50,000 to attend college in period 1 and then earn $180,000 in periods 2 and 3. Finally, he can receive a doctorate degree in period 2 after completing his college education in period 1. This last option will cost him nothing when he is attending graduate school in the second period as his expenses on tuition and books will be covered by a research assistantship. After receiving his doctorate, he will become a professor in a business school and earn $400,000 in period 3. Peter’s discount rate is 20 percent per period. What education path maximizes Peter’s net present value of his lifetime earnings? Q2) (a) Is the presence of…Structural transformation that happens as a process of economic development is characterized by which of the following? [Select Multiple] Group of answer choices As countries develop, the relative contribution of the agricultural sector to total employment and GDP declines As countries develop, the relative contribution of the manufacturing sector to a country's GDP first increases and then falls. As countries develop, the proportion of the population engaged in agriculture stabilizes eventually. As countries develop, the relative contribution of the service sector to a country's GDP first increases and then falls.True or False: It is possible, in a basic hours towards leisure and income towards consumption model, that the Earned Income Tax Credit can encourage more hours towards leisure, less hours towards work and more money towards consumption.
- South Africa’s economy is comprised of several different market structures, and these have different implications for welfare, development, employment, competition and economic growth. Using publicly available data, generate two (2) graphs of macroeconomic indicators that would best encapsulate South Africa’s economic performance over the period Jan 2017 to December 2022 for an investor who may be interested in South Africa. Provide a brief explanation of the trends shown in the graphs.E. Is unemployment rate a determinant of the murder rate in this data? Answer "YES" or "NO"______________. F. Is the treatment effect statistically significant at the 95% confidence level? That is, did removing the assault weapons ban have a statistically significant effect on the murder rate? Hint: Think about which coefficient we care about in a diff-in-diff set up. Answer "YES" or "NO"._____________. G. Does running this as a two-way fixed effects model make sense? Answer by inputting the number that is associated with the correct statement:______________.Do the migration trends, unemployment trends and rural-urban income ratio trends behave in the way you would expect based on the Harris-Todaro model? Explain.
- True/ False Macroeconomics deals with the study of Cotton textile industry.QUESTIONS 3 1. Explain the implication of the Ramsey model in terms of Pareto Efficiency Dynamic Efficiency 2. Assume that the economy is in a steady state and there is an unexpected permanent increase in the rate of depreciation δ. Using the appropriate diagram show: What is the best response to this change? Does consumption initially increase or decrease?Changes in macroeconomic indicators can often be of relevance to business and influence decision-making concerning a range of issues related to things like profit forecasts, expected sales growth, expansion plans, etc. Assume you are employed as a business analyst with a large Singaporean based multinational corporation that manufactures electronic products. Identify and discuss how a major export market where electronic goods are sold experiences accelerating inflation.
- Question 2 Based on economic theory, consider a model of a closed economy involving at least three quantifiable variables. Explain the complete procedure for testing and analyzing co-integration relations using JJ and ARDL approaches. Also, explain which model is more suitable for time series analysis.How do you forecast Amazon’s future income statement utilizing forecasted growth rates?A leading economic indicator of business cycle peaks is given by the average duration of unemployment the change in prices for consumer services personal income minus transfer payments an index of stock prices for 500 stocks
