Explain the attachment.

Suppose you are estimating parameters of the following regression model: Where: Y = average starting pay at graduation, in pounds. Xx = tuition fee in 2012, in pounds. X= independent recruiter rating (maximum is 5.0). 14 = disturbance term. Using cross-section data on top 50 UK graduate business schools, you obtain the following results: Y, = 9941 + 0.25 Xy + 15125 X31 (6114) (0.121) (7349) R- = 0.87. RSS = 10310 (The figures in parentheses are the estimated standard errors. RSS are residual SWUm of squares.) (i) Comment on the signs of the variables in the model. (2 Marks) (ii) Interpret and explain individual coefficients. (4 Marks) (iii) Suppose X's increases by 0.25: what is the expected impact of this change on Y? (2 Marks) (iv) Comment on the explanatory power of the regression. (2 Marks) (v) Using t-tests show whether individual coefficients are significantly different from zero at 5% level of significance. (4 Marks) (vi) Test whether the coefficient of X, is significantly different from I at 5% level of significance. (2 Marks) (vii) Carry out an appropriate test to check if coefficients are jointly significant. (5 Marks)e. In what range must the international relative price of wheat fall? Why? 7. Suppose that: In Malaysia the unit labor requirement (ULR) to produce a pound of rice and a pencil are 2 and 4 hours of labor respectively; In Indonesia, the unit labor requirement to produce a pound of rice and a pencil are 4 and 6 hours respectively; each country has 20,000 hours of labor to allocate between the production of rice and pencils; and in autarky, Malaysia consumes 5,000 pounds of rice and 2,500 pencils. When trade PRW occurs, the world relative price of rice Pew becomes 3/5- a. Given that the marginal product of labor is the inverse of unit labor requirements, i.e. MPL = 1/ULR, derive the relationship between price ratio and the ratio of unit labor requirements. (hint: remember that w = P * MPL and that in autarky wages in both sectors are equal) b. Which country has the better technology? c. What are the autarkie (pre-trade) relative prices of rice and pencils respectively in each country? d. How many work hours are employed in the Pencil and Rice sector respectively in Malaysia? e. In which product will each country specialize? f. When specializing, how many units of rice and pencils will Malaysia produce? (hint: obtain total labor hours available from your answer in part d. above) Chapter 3: Specific Factors Model 8. How does the specific factors model differ from the Ricardian model? (list at least 3 for full points) 9. Suppose that land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors. If there is an increase in the amount of capital, holding the prices of agricultural and manufacturing goods constant, what happens to the equilibrium nominal wage rate and labor allocation? What happens to the rental rate of capital? What happens to the rental rate of land? 10. Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 400; payments to labor = 100; payments to capital = 300 Corn: Sales revenue = 300; payments to labor = 250; payments to land = 50 Holding the price of automobiles constant, suppose the increase in the price of corn is 10% and the increase in the wage is 5%. What is the impact of this on the rental of land and the rental of capital? Thought exercise: Question generation (This is due on Sunday, the gth of February, 2020 at 11:59PM) 11. Choose any topic above and construct an original multiple choice question (complete with question, at least 4 responses and the correct answer). In addition, provide the logic for what the question was designed to test.6. Policy coordination and the world economy Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, investment, gov- ernment spending, and taxes are given by C - 10 + 0.8(Y - T), I = 10, G = 10, and 7 = 10 Imports and exports are given by IM =0.3Y and X =0.3 Y* where Y denotes foreign output. a. Solve for equilibrium output in the domestic economy, given Y'. What is the multiplier in this economy? If we were to close the economy-so exports and imports were iden- tically equal to zero-what would the multiplier be? Why would the multiplier be different in a closed economy? b. Assume that the foreign economy is characterized by the same equations as the domestic economy (with as- terisks reversed). Use the two sets of equations to solve for the equilibrium output of each country. [Hint: UseQuestion 1 (a) You deposit RM5,000 in a savings account that pays 8 percent interest, compounded annually. How much will your account be worth in 12 years? (3 marks) (b) You deposit RM2,000 in a savings account that pays 5 percent interest, compounded annually. How much will your account be worth in 7 years? (3 marks) (c) Assume you are to receive a 10-year annuity with annual payments of RM70. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each payment in an account that pays 6 percent. What will be the value in your account at the end of Year 15? (6 marks) (d) You are given the following cash flows. What is the present value (t = 0) if the discount rate is 12 percent? (6 marks) 0 12% 1 6 Periods O - 2,000 2,000 2,000 0 -2,000 RM (e) You are contributing money to an investment account so that you can purchase a house in five years. You plan to contribute five payments of RM2,500 a year, where the first payment will be made today (t - 0), and the final payment will be made four years from now (t = 4). If you earn 9 percent in your investment account, how much money will you have in the account five years from now (att = 5)? (7 marks) [Total ; 25 Marks]the equations for the foreign economy to solve for Y" as a function of Y and substitute this solution for Y* in part (a).] What is the multiplier for each country now? Why is it different from the open economy multiplier in part (a)? C. Assume that the domestic government, G, has a target level of output of 125. Assuming that the foreign government does not change G' , what is the increase in G necessary to achieve the target output in the domestic economy? Solve for net exports and the budget deficit in each country. d. Suppose each government has a target level of output of 125 and that each government increases government spending by the same amount. What is the common in- crease in G and G necessary to achieve the target output in both countries? Solve for net exports and the budget deficit in each country. e. Why is fiscal coordination, such as the common increase in G and G' in part (d), difficult to achieve in practice