Using sound economic theory, develop a macroeconomic econometric model that would test the relationshipbetween globalisation and economic development in South Africa. You are to state the a priori expectations ofwhat the model would tell us, and you are to write the model using ‘Word Equation’. Finally, each variable that isincluded must be justified regarding its relevance for being there.
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Using sound economic theory, develop a
between globalisation and economic development in South Africa. You are to state the a priori expectations of
what the model would tell us, and you are to write the model using ‘Word Equation’. Finally, each variable that is
included must be justified regarding its relevance for being there.
Step by step
Solved in 2 steps
- A) Which country do you prefer andwhy B) Prove your decision numerically, graphically, and with respect torelevant economics theoryWhat is centeris paribus assumptionsConsider the market for pita bread. All else equal, when tastes change such that more people like eating pita bread, we'd expect to see in this market [Select] in equilibrium price and [Select] in equilibrium quantity.
- Why is it important for a good economic model tomake clear assumptions?In the following examples, identify the exogenous (or independent) variable and the endogenous (or dependent) variable. a. Student loans availability and student attendance at university. The exogenous variable is and the endogenous variable is student loans availability student attendance at universityExplain why it is important for an economic modelto be an abstraction from the real world.
- 1) Why does the gravity model work? A) Large economices became large because they were engaged in international trade. B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment. C) Large economies have relatively larger areas, which raises the probability that a productive activity will take place within the borders of that country. D) Large economies tend to have large incomes and tend to spend more on imports. E) Large economies tend to avoid trading with small economies. 2) Which of the following does NOT explain the extent of trade between Ireland and the U.S.? A) historical ties B) cultural Linguistic ties C) Gravity Model D) multinational corporations E) large numbers of Irish-Americans 3) In the current Post-Industrial economy, international trade in services (including banking and financial services) A) dominates world trade. B) does not exist. C) is an increasingly important component of global trade. D) is…A budget constraint model differs from production possibilities model in that, typically O only the budget constraint depicts an inverse relationship, or a trade-off. The budget constraint shows how scarcity applies to producers O only the budget constraint demonstrates diminishing returns. only the production possibilities model demonstrates diminishing returns.COVID-19 has undoubtedly been a defining time in our generation's history, with effects on global economies comparable insome instances to what was experienced during the Great Depression of the 1930s. The pandemic has also recalled theeconomic shockwaves of the Global Financial Crisis of 2008/09. One can argue that this episode is like none seen beforebecause it hasn’t emanated from economic factors. The pandemic is also having a broad spectrum of effects on economiesand exchange rates globally.
- In a typical product mix model, where a companymust decide how much of each product to produceto maximize profit, there are sometimes customerdemands for the products. We used upper-boundconstraints for these: Don’t produce more than youcan sell. Would it be realistic to have lower-boundconstraints instead: Produce at least as much as isdemanded? Would it be realistic to have both (wherethe upper bounds are greater than the lower bounds)?Would it be realistic to have equality constraints:Produce exactly what is demanded?With the help of a diagram explain the main principles of the first-order Markov Model.In your answer explain any notation that you use. Explain what is meant by the term‘’first-order”.What is Time Consistency? Select one: a. None of the above b. a situation in which an agent, planner or objective maximizer must make a choice about an action or decision in a future plan which is optimal at a later date but is not optimal initially c. Refers to a situation in which a policy results in varying results d. a situation in which an agent, planner or objective maximizer must make a choice about an action or decision in a future plan which is optimal initially but is no longer optimal at a later date