Describe the distinction between descriptive statistics and inferential statistics.

Part A: Differentiate between measures of annual income. Is it better to describe a region’s ‘typical’ standard of living based on mean annual income measures? If not, what would you suggest as a better descriptive statistic? Part B: Differentiate between income and wealth. Why is income data so prevalent while wealth data so rare? Finally, explain two different methods of measuring wealth.

19

T or F  A household is frequently used in analyses because more consistent data are usually collected at that level.

Explain, what, why, how retail sales is used to gauge Econ health

Write first-order model relating E(y) to four quantitative independent variables.

Econometrics   Thomas Eisensee and David Stromberg wanted to measure how much news coverage of a foreign disaster impacted the amount of disaster relief provided by the U.S. government. They argue that the simple relationship would be biased.   Let X = Minutes of News Coverage and Y= Disaster Aid. Choose a variable X2 that could bias the simple relationship. This variable should impact the amount of coverage and impact the amount of aid for reasons other than purely news coverage.    Eisensee and Stromberg introduce an instrument Z = During the Olympics. Explain how Z could satisfy the relevant and exogenous criteria.    Explain how you could use Z to estimate the impact of X on Y free from X2 bias. Hint: you should mention two stages.

National income accounting can best be characterized as: Group of answer choices a microeconomic model of the economy used by the Federal Reserve bank. a method for comparing different political systems. a standardized economic report authored by politicians. a statistical measure of the income received by consumers as opposed to businesses. a set of rules used to summarize economic activity over a given period of time.

the idea that higher prices reduce the purchase and power of financial assets and lead to less consumption and more saving is known as the A. Foreign purchases effect B. Income effect C. Aggregate demand effect D. Real balances affect

QUESTION 7 Which is NOT true about the coefficient of determination? As you add more variables, the R-square generally rises. As you add more variables, the adjusted R-square can fall. If the R-square is above 50%, the regression is considered significant. The R-square gives the percent of the variation in the dependent variable that is explained by the independent variables. The higher is the R-square, the better is the fit.