Directions: Answer all the below questions using the Cassidy book (Introduction to Chapter 6) and the video âMind over Moneyâ
Turn in your essay questions on blackboard under assessments by 9am on September 14, 2020
1.What is Adam Smithâs invisible hand idea all about?
2.Why is there a spontaneous order that comes out of the pricing system (according to Smith)?
3.Why did Smith think that banking needed to regulated?
4.How does general equilibrium theory support the idea of the invisible hand?
5.What did later researchers (from the 1970âs) find out about general equilibrium theory?
6.How are the assumptions in the Arrow-Debreu model inconsistent with reality?
7.Why did Milton Friedman become so famous and his views on economics so popular?
8.What are the implications of stock returns (or any asset) following a normal distribution?
9.Empirically speaking, are stock price changes on one day independent from the next dayâs stock price changes? Explain
The next questions are from the video âMind Over Moneyâ
10. The main model of consumer behavior assumes that we never buy anything until we’ve calculated the impact on, for example, our retirement fund, and we’re so good at math we use interest rates to compute our pleasure, over time, after buying something. What was Robert Shillerâs response to this?
11. What is the âas ifâ defense used by Eugene Fama and John Cochrane?
12. How did Richard Thaler refute the âas ifâ defense with the pool?
13. What did you think of Eugene Famaâs explanation of the housing decline has a âchange in tastesâ?
Sample Solution
Paget’s Bone Disease Dynamic In request to consider quality changes that should cause Paget ‘s bone ailment, scientists must have plausible contender to have hereditary transformations. They found the best possibility for having hereditary changes in the mouse so they relocated hereditary transformations into incipient organisms of relatives of the mouse. Specialists theorized that p62P394L is adequate to actuate PDB, particularly since the p62 quality is associated with the coding of a 62 kDa protein that assumes a function in the motioning of osteoclast forerunners. Results were found by immobilizing the first, fifth lumbar spines of 4, 8 and year old homozygotes, heterozygotes and WT littermates for 10 to 4 hours in cushioned formalin for 24 to 48 hours . In 1877, Sir James Paget depicted the neighborhood bone malady initially known as Paget’s illness. Paget’s illness is a metabolic bone infection portrayed by unnecessary bone resorption and development by initiated osteoclasts. Skeletal Paget’s sickness ordinarily happens in individuals more than 40 years old and fundamentally influences the pivot bone. Roughly 5% of patients create indications that require treatment, however the most widely recognized manifestation is disfigurement of bone agony, growing, difficult territories. Different indications of this infection incorporate expanded helplessness to breaks, hearing misfortune, and neurological difficulties. PDB is the second most basic metabolic bone malady after osteoporosis. This is more normal in western nations; interestingly, it is very uncommon in many pieces of China and sub-Saharan Africa. Arthralgia and bone polish are basic indications of Paget’s ailment. As the malady advances, bone growing and development debilitates the extended bone. The underlying indications of Paget ‘s illness are not satisfactory, yet after some time, as the ailment advances it becomes more clear. Another entangling element of Peggy’s sickness is gout. Gout is brought about by overproduction of uric corrosive and salt and causes gouty joint inflammation, uric corrosive digestion issue. Amassing of uric corrosive and salt in blood prompts the collection of bone joint/ligament, at that point kidney stone. Bone tumor brought about by gout, specifically cancellous bone tumor>
Paget’s Bone Disease Dynamic In request to consider quality changes that should cause Paget ‘s bone ailment, scientists must have plausible contender to have hereditary transformations. They found the best possibility for having hereditary changes in the mouse so they relocated hereditary transformations into incipient organisms of relatives of the mouse. Specialists theorized that p62P394L is adequate to actuate PDB, particularly since the p62 quality is associated with the coding of a 62 kDa protein that assumes a function in the motioning of osteoclast forerunners. Results were found by immobilizing the first, fifth lumbar spines of 4, 8 and year old homozygotes, heterozygotes and WT littermates for 10 to 4 hours in cushioned formalin for 24 to 48 hours . In 1877, Sir James Paget depicted the neighborhood bone malady initially known as Paget’s illness. Paget’s illness is a metabolic bone infection portrayed by unnecessary bone resorption and development by initiated osteoclasts. Skeletal Paget’s sickness ordinarily happens in individuals more than 40 years old and fundamentally influences the pivot bone. Roughly 5% of patients create indications that require treatment, however the most widely recognized manifestation is disfigurement of bone agony, growing, difficult territories. Different indications of this infection incorporate expanded helplessness to breaks, hearing misfortune, and neurological difficulties. PDB is the second most basic metabolic bone malady after osteoporosis. This is more normal in western nations; interestingly, it is very uncommon in many pieces of China and sub-Saharan Africa. Arthralgia and bone polish are basic indications of Paget’s ailment. As the malady advances, bone growing and development debilitates the extended bone. The underlying indications of Paget ‘s illness are not satisfactory, yet after some time, as the ailment advances it becomes more clear. Another entangling element of Peggy’s sickness is gout. Gout is brought about by overproduction of uric corrosive and salt and causes gouty joint inflammation, uric corrosive digestion issue. Amassing of uric corrosive and salt in blood prompts the collection of bone joint/ligament, at that point kidney stone. Bone tumor brought about by gout, specifically cancellous bone tumor>
