1. Consider a multiple regression model relating soft drink delivery time (y) to number of cases delivered (x1) and a dummy variable for snow and ice (x2 ). x2 is 1 when the delivery route is snowy or icy and 0 otherwise. The estimated regression model is = 20 + 2x1 + 10x2 + 1x1x2. The regression indicates that the mean delivery time for 10 cases. Determine when there is snow or ice on the route

2. Assume that the United States and Mexico are major trading partners. The United States dollar will appreciate in relation to the Mexican peso under what conditions

3. What events will decrease the money supply in the economy

4. To internalize cost that an industry generates. What should the government do ?

5. A demand function for a good is given by Q = 100 - 4P2, where Q = quantity demanded per unit of time and P = the price per unit. At a price of $4. Determine the absolute value of the price elasticity of demand

6. Discuss the Keynesian framework

7. Why is a perfectly competitive firm's demand curve for labor is downward sloping

8. How the governments of Less developing countries protect their local industries

9. Differentiate between short run and long run production

10. Explain how inflation affects the demand of goods