Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

ECON1314 Quantitative Methods for Economic Analysis

Online Timed Assessment: ECON1314 Semester 1, 2022

SECTION A

Answer all the following statistics questions

QUESTION 1

The age in years and current market value, as measured in Australian dollars, of a certain type of car are given in the following table.

Table 1

What is the estimate of the average market value and the modal market value? (5 marks)

QUESTION 2

Referring to Table 1

What is the standard deviation of the market value? (5 marks)

QUESTION 3

Suppose that the market value is converted from Australian dollars to UK pounds using the exchange rate 0.69. How would this affect the correlation between the age of the car and its market value, as measured in UK pounds? (5 marks)

QUESTION 4

The following frequency table is constructed from a survey data of 30 employees interviewed at workplace regarding their job satisfaction (Poor/Average/Excellent) and their line manager (manager A (Jill) or manager B (Jack))

Table 2: Joint Absolute Frequency Table

If one person is surveyed at random, what is the probability that the person selected is managed by Jill and reports excellent job satisfaction? (5 marks)

QUESTION 5

Referring to Table 2. Given that the person selected has poor job satisfaction. What is the probability that they are managed by Jack? (5 marks)

QUESTION 6

What does a correlation coefficient of 0.9 tell you about the relationship between two variables? (5 marks)

QUESTION 7

The regression equation linking two variables X and Y is Y=5X-24. What can you say about the slope coefficient?  (5 marks)

QUESTION 8

The regression equation linking two variables X and Y is Y=5X-24. What can you say about the value of the intercept?        (5 marks)

The following regression output relates to the analysis of gas consumption and is required for questions 9 and 10:

Given rising energy prices globally it is important to understand how usage is related to price.

A survey of 30 households explored the relationship between their gas consumption and the price per unit of gas (measured in dollars). A simple linear regression model was fitted to the data. The table below contains the excel output with some of these regression results.

QUESTION 9

Test the hypothesis that the slope coefficient is significantly different from zero at the 5% level of statistical significance and interpret your result.  What are the policy implications of your findings?  (5 marks)

QUESTION 10

Does the model appear to fit the data? Justify your answer.   (5 marks)

SECTION B

Answer all the following economics questions

QUESTION 1

Define the concept of price elasticty of supply. Which of the following diagrams shows a unitary elastic supply curve and which shows a perfectly elastic supply curve. Explain your answers.

 (5 marks)

QUESTION 2

Explain the ways in which a countries production possibility frontier can move outwards. (5 marks)

QUESTION 3

Consider the price and demand for flower vases. If price of cut flowers goes up sharply due to poor growing conditions what would you expect to happen to the demand for vases?  (5 marks)

QUESTION 4

What is GDP? Is GDP a good measure of economic welfare for a country? (5 marks)

QUESTION 5  

What are the characteristics of oligopoly markets? (5 marks)

QUESTION 6

Sales of good A have increased from 15,000 to 17,000 units following a rise in household incomes from $40,000 to 42,000. What is the income elasticity of demand for good A? Comment on its value. (5 marks)

QUESTION 7

Explain the concept of market failure? Give an example of a public good and explain why it is a public good. (5 marks)

QUESTION 8  

Why are monopolies usually regarded as inefficient? (5 marks)

QUESTION 9         

The government of country A has seen rapid growth in the post COVID-19 economy and has decided to implement contractionary fiscal policy. Explain why contractionary fiscal policy is appropriate in this context.                            (5 marks)

QUESTION 10     

Country A has seen rapid growth in the post COVID-19 economy and its central bank has decided to implement contractionary monetary policy. What is the role of a central bank in a period of contractionary monetary policy? (5 marks) 

(20 questions x 5 marks = 100 marks)