Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 30, Problem 41CTQ
In a booming economy, is the federal government more likely to run surpluses or deficits? What are the various factors at play?
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What is the purpose of The Council of Economic Advisers?
By taking into consideration the history of the Caribbean, the economic theories underpinning Caribbean development, as well as the features of the typical Caribbean economy, construct a hypothetical (ideal) economic model that you consider suitable for the economic development of the Caribbean. Ensure that you carefully explain/justify the reasoning behind the development of your model.
NOTES:
start with the models and theories discussed in this course. You should carefully examine each model. Based on this, you should be able to identify what aspects you think are relevant/necessary for the Caribbean context and which are not.
Once you have the aspects of the model you deem relevant, you need to organise them into the “ideal” model of Caribbean economic development. This should include model objectives and assumptions that describe the setting and the behaviour of the economic agents, model inputs, etc.
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We want identify the effect of years of education on wage. In the dataset, educ (X) is
measured in years, and wage (Y) is defined as hourly wage and measured in dollars.
Specifically, we want to estimate
=
wage Boẞ₁educ + u
Assume E(u) = E(u|educ) = 0
The regression result is shown on the table below.
.
reg wage edu
Source
SS
df
MS
Number of obs
797
F(1, 795)
274.52
Model
Residual
54070.9621
156590.357
1 54070.9621
795 196.969002
Prob F
0.0000
R-squared
Total
210661.319
796 264.649898
Adj R-squared. =
Root MSE
0.2557
14.035
wage
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
educ
_cons
3.045239
-17.81018
.183797
2.677142
16.57
0.000
2.684455
-6.65
0.000
-23.06528
3.406024
-12.55507
Choose all correct answers
00
The sample covariance between wage and education is positive
The sum of squared residuals is greater than the explained sum of squares.
An individual with 12 years of education has a lower wage than an individual with 16 years of
education
An individual with 0 years of education…
Chapter 30 Solutions
Principles of Economics 2e
Ch. 30 - When governments run budget deficits, how do they...Ch. 30 - When governments run budget surpluses, what is...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - Suppose that gifts were taxed at a rate of 10 for...Ch. 30 - If an individual owns a corporation for which he...Ch. 30 - What taxes would an individual pay if he were...Ch. 30 - The social security tax is 6.2 on employees income...Ch. 30 - Debt has a certain self-reinforcing quality to it....Ch. 30 - True or False: Federal spending has grown...Ch. 30 - What is the main reason for employing...
Ch. 30 - What is the main reason for employing expansionary...Ch. 30 - In a recession, does the actual budget surplus or...Ch. 30 - What is the main advantage of automatic...Ch. 30 - Explain how automatic stabilizers work, both on...Ch. 30 - What would happen if expansionary fiscal policy...Ch. 30 - What would happen if contractionary fiscal policy...Ch. 30 - Do you think the typical time lag for fiscal...Ch. 30 - How would a balanced budget amendment affect a...Ch. 30 - How would a balanced budget amendment change the...Ch. 30 - Give some examples of changes in federal spending...Ch. 30 - Have the spending and taxes of the U.S. federal...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a budget deficit, a...Ch. 30 - Have spending and taxes by state and local...Ch. 30 - What are the main categories of U.S. federal...Ch. 30 - What is the difference between a progressive tax,...Ch. 30 - What has been the general pattern of U.S. budget...Ch. 30 - What is the difference between a budget deficit...Ch. 30 - What is the difference between expansionary fiscal...Ch. 30 - Under what general macroeconomic circumstances...Ch. 30 - What is the difference between discretionary...Ch. 30 - Why do automatic stabilizers function...Ch. 30 - What is the standardized employment budget?Ch. 30 - What are some practical weaknesses of...Ch. 30 - What are some of the arguments for and against a...Ch. 30 - Why is government spending typically measured as a...Ch. 30 - Why are expenditures such as crime prevention and...Ch. 30 - Why is spending by the U.S. government on...Ch. 30 - Excise taxes on tobacco and alcohol and state...Ch. 30 - What is the benefit of having state and local...Ch. 30 - In a booming economy, is the federal government...Ch. 30 - Economist Arthur Laffer famously pointed out that,...Ch. 30 - Is it possible for a nation to run budget deficits...Ch. 30 - How will cuts in state budget spending affect...Ch. 30 - Is expansionary fiscal policy more attractive to...Ch. 30 - Is Medicaid (federal government aid to low-income...Ch. 30 - What is a potential problem with a temporary tax...Ch. 30 - If the government gives a 300 tax cut to everyone...Ch. 30 - Do you agree or disagree with this statement: It...Ch. 30 - During the Great Recession of 20082009, what...Ch. 30 - A government starts off with a total debt of $3.5...Ch. 30 - If a government runs a budget deficit of 10...Ch. 30 - Specify whether expansionary or contractionary...
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