What do we mean by a linearregression model
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Write down the formula for Naia's budget constraint and graph the budget constraint with movies on the vertical axis and popcorn on the horizontal axis.
Find the marginal rate of substitution and interpret what it means. Draw an indifference map with three indifference curves for this utility function.
Draw the extensive form for the following game (invent your own payoffvectors, because I give you no payoff information).
Briefly explain the Factor Proportions Theory by Heckscher and Ohlin. What, in your view, are the major shortcomings of this theory?
What do we mean by a linearregression model? What variables would you consider in developing such a model?
Compare the risk of each portfolio to the market as well as to each other. Which portfolio is more risky?
Determine the MRT of steel into aluminum for each nation. Describe the trade triangles for Canada and France.
Use the capital asset pricing model to find the required return on each of the investment vehicles.
What variables would you consider in developing such a model? See if your modelmatches the one developed by the Nobel laureate economist Gary Becker.
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