Economics

1.7 Which one of the following statements is correct? If the price elasticity of

1.7 Which one of the following statements is correct? If the price elasticity of the demand for ice cream is greater than one, then the suppliers of ice cream can increase their t…

1.7. True or False (briefly explain): If an unemployed person quits looking for

1.7. True or False (briefly explain): If an unemployed person quits looking for work, then, other things the same, the unemployment rate decreases and the labor force participatio…

1.8 Bibliographical References, Extensions and Exercises (1.3) Let u w2 for w o.

1.8 Bibliographical References, Extensions and Exercises (1.3) Let u w2 for w o. (a) Compute the exact risk premium if initial wealth is 4 and if a decision maker faces the lotter…

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1.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> Refer to Table 16-4. If the bank faces a reserve requirement of 10 percent,   then the bank A.…

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1.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> The First Bank of Fairfield Assets Liabilities Reserves $2,000 Deposits $10,000 Loans 8,000 Re…

1.?Sarah Wiggum would like to make a single investment and have ?$2.2 million at

1.?Sarah Wiggum would like to make a single investment and have ?$2.2 million at the time of her retirement in 32 years. She has found a mutual fund that will earn 5 percent annua…

1.A bill of lading is a document issued by the buyer to the carrier upon receipt

1.A bill of lading is a document issued by the buyer to the carrier upon receipt of the goods. A) True B) False 2. In a shipment contract, the risk of loss passes to the buyer whe…

1.A company is considering the following projects: Project A B C Construction co

1.A company is considering the following projects: Project A B C Construction cost 1000$ 100 150 300 Annual Benefits 1000$/yr (prob) 30(0.2) 40(0.6) 45(0.2) 25(0.3) 35(0.6) 40(0.1…

1.A consumption tax system is likely to benefit Select one: a. higher income ind

1.A consumption tax system is likely to benefit Select one: a. higher income individuals. b. lower income individuals. c. an individual who, regardless of income, is a large consu…

1.A country that commits to a maximum and minimum allowable exchange rate at a g

1.A country that commits to a maximum and minimum allowable exchange rate at a given time uses a options: dirty float. managed fixed exchange rate. all of the above. 2.A sterilize…

1.A decrease in aggregate supply can result in: A. a recession. B. cost-push inf

1.A decrease in aggregate supply can result in: A. a recession. B. cost-push inflation. C. demand-pull inflation. D. unemployment. 2.In the short run (intermediate range) of the a…

1.A decrease in aggregate supply can result in: A. a recession. B. cost-push inf

1.A decrease in aggregate supply can result in: A. a recession. B. cost-push inflation. C. demand-pull inflation. D. unemployment. 2.In the short run (intermediate range) of the a…

1.A farmer sells cotton to a clothing company for $1,000 and the clothing compan

1.A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. How much did GDP i…

1.A firm produces 4 kinds of goods: G1, G2, G3, G4. Each good requires three kin

1.A firm produces 4 kinds of goods: G1, G2, G3, G4. Each good requires three kinds of input: Labor, Row Materials, Capital (quantity if each input needed for each good is noted in…

1.A flawed argument for protection from foreign trade is that i. tariffs save do

1.A flawed argument for protection from foreign trade is that i. tariffs save domestic jobs. ii. tariffs protect the national culture. iii. quotas bring about diversity and stabil…

1.A kinked demand curve is most likely to occur when other firms A) follow any c

1.A kinked demand curve is most likely to occur when other firms A) follow any change in price by a rival firm B) engage in collusive practices C) follow a downward change in pric…

1.A medical device company has a monopoly on a certain class of cardiac implants

1.A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The…

1.A monopoly\'s MC and MR intersects at a price of $7. If you extends this point

1.A monopoly's MC and MR intersects at a price of $7. If you extends this point above to demand curve, the intersection point touches at a price of $12. In the MC and MR intersect…

1.A person(s) is out of work due to a downturn in economic activity, and spendin

1.A person(s) is out of work due to a downturn in economic activity, and spending by households has shifted the aggregate demand curve to the left; causing both the average price …

1.A restaurant owner just found out that his pizza bistro is losing money. What

1.A restaurant owner just found out that his pizza bistro is losing money. What is one possible explanation for this loss? The costs and the revenue aren’t both being maximized. E…

1.A(n) ________ is a special talent of a company that competitors find difficult

1.A(n) ________ is a special talent of a company that competitors find difficult to match. A. value-chain analysis B. focus strategy C. organizational structure D. core competency…

1.According to Jonathan Bettino of Belkin, a corporation that manufactures wirel

1.According to Jonathan Bettino of Belkin, a corporation that manufactures wireless routers, how many American households had wireless access to the Internet in 2003? A. 3.9 milli…

1.According to Keynes, if aggregate income is too high (i.e, an inflationary gap

1.According to Keynes, if aggregate income is too high (i.e, an inflationary gap is developing) the government should use contractionary fiscal policy a. True b. False 2. What is …

1.An employee has been constructively discharged from his employment when: a. he

1.An employee has been constructively discharged from his employment when: a. he is given constructive criticism of his prior performance in his exit interview.                   …

1.An increase in the price of a good will 2.An increase in the price of a good w

1.An increase in the price of a good will 2.An increase in the price of a good will 3.An increase in price causes an increase in total revenue when demand is 4.Which of the follow…

1.An industry utilizes capital and two types of labor. Unskilled labor is a subs

1.An industry utilizes capital and two types of labor. Unskilled labor is a substitute for capital while the skilled labor is complementary to capital. An increase in the price of…

1.An unemployment rate of 8 percent implies that: the number of unemployed peopl

1.An unemployment rate of 8 percent implies that: the number of unemployed people is 8 percent of the population aged thirty and above. 2.Which of the following statements is corr…

1.As an employee in the Lottery Commission, your job is to design a new prize. Y

1.As an employee in the Lottery Commission, your job is to design a new prize. Your idea is to create two grand prize choices: (1) receiving $50,000 at the end of each year beginn…

1.As long as price is sufficient to cover __________, the firm is better off by

1.As long as price is sufficient to cover __________, the firm is better off by operating rather than by shutting down in the short run. Answer marginal cost average fixed cost av…

1.Assume that a Firm\'s marginal cost function is MC =3q and its marginal revenu

1.Assume that a Firm's marginal cost function is MC =3q and its marginal revenue function is MR =120-3q. At the output level of 18 units, in order to maximizae profit, this firm s…

1.Assume the MPC is 0.90. If the government increases spending by $400 billion a

1.Assume the MPC is 0.90. If the government increases spending by $400 billion and increases taxes by $400 billion simultaneously, then aggregate demand will: Select one: a. Shift…

1.Assume the following:a.The supply schedule is given from P = 2 + 3Qs b.The dem

1.Assume the following:a.The supply schedule is given from P = 2 + 3Qs b.The demand schedule is given from P= 10 - Qd Find the equilibrium price & the equilibrium quantity. Dr…

1.Assume the market for peanuts is depicted in the table below. Complete the tab

1.Assume the market for peanuts is depicted in the table below. Complete the table. State whether Price per bushel (millions of Quantity supplied (millions of is a shortage, fall …

1.Assume we have a usual downward-sloping demand curve (in price and quantity sp

1.Assume we have a usual downward-sloping demand curve (in price and quantity space), where price is on the vertical (or y) axis and quantity is on the horizontal (or x) axis. Thi…

1.Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and

1.Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and several of his friends and relatives avoid the flu for the entire flu season. It would make sense t…

1.Breakdown of a cartel agreement Consider a town in which only two residents, T

1.Breakdown of a cartel agreement Consider a town in which only two residents, Tim and Alyssa, own wells that produce water safe for drinking. Tim and Alyssa can pump and sell as …

1.Can a perfectly competitive firm make economic profit in the long run?Can a mo

1.Can a perfectly competitive firm make economic profit in the long run?Can a monopoly firm make economic profit in the long run? Explain.                                         …

1.Carl is a millionaire, meaning he has a net worth of a little more than $1,000

1.Carl is a millionaire, meaning he has a net worth of a little more than $1,000,000, putting him in the top 5 percent of the U.S. population in terms of financial well-being. Dan…

1.Ceteris paribus, if the U.S. federal government reduces its budget deficit whi

1.Ceteris paribus, if the U.S. federal government reduces its budget deficit which of the following will be observed? Answer a. The aggregate demand curve will shift to the right.…

1.Check all the conditions below that are offered as explanations for why we mig

1.Check all the conditions below that are offered as explanations for why we might expect countries' real GDP per capita to converge, i.e. low income countries to catch up to high…

1.Clara\'s utility function is U(X,Y) = (X + 2)(Y +1). a) Write an equation for

1.Clara's utility function is U(X,Y) = (X + 2)(Y +1). a) Write an equation for Clara's indifference curve that goes through the point (X,Y) = (2, 8). b) Suppose that the price of …

1.Common Markets are characterized by Free movement of Capital, common currency

1.Common Markets are characterized by Free movement of Capital, common currency and a Central bank Trade agreements, preferential trade and favored nation status Common Monetary p…

1.Companies whose stocks increase the most during a stock market bubble will: a.

1.Companies whose stocks increase the most during a stock market bubble will: a.Have a difficult time raising investment capital. b.Tend to over-invest. c.Usually rebound faster o…

1.Conduct an Internet search of the basic course structure for your state: •To c

1.Conduct an Internet search of the basic course structure for your state: •To conduct this search, enter the words "court structure" followed by the name of your state into your …

1.Consider a developing country, experiencing a high rate of growth in GDP. In y

1.Consider a developing country, experiencing a high rate of growth in GDP. In your view, would this mean an increase in economic wellbeing? Explain why/why not (provide TWO reaso…

1.Consider an economy in which only food, clothing, and computers are produced.

1.Consider an economy in which only food, clothing, and computers are produced. The established       market basket is the following: 300 food, 40 clothing, 1 computer. Quantities…

1.Consider the following four debt securities, which are identical in every char

1.Consider the following four debt securities, which are identical in every characteristic except as noted: ?W: A corporate bond rated AAA ?X: A corporate bond rate BBB ?Y: A corp…

1.Consider the following hypothetical economy with a population of 20 million. T

1.Consider the following hypothetical economy with a population of 20 million. There are 7 million people working full-time, 2 million people working part-time, 1 million people w…

1.Consider the following questions. • The hierarchy of money and the four prices

1.Consider the following questions. • The hierarchy of money and the four prices of money. • The major items on the balance sheet of typical banks and central banks (the Fed). • T…

1.Consider the information in the attached file. The AVC and ATC curves imply th

1.Consider the information in the attached file. The AVC and ATC curves imply that the fixed cost of production equals ?dollars. 2.Consider the information in the attached file. T…