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Let's say you have a professor who gives 6 tests in the fall semester. You received these percentages: 79, 64, 84, 82, 92, and 77. This professor has decided that he will randomly select two grades instead of averaging all of the original scores. Your final grade will be based on the average of these two exams. a) How many different samples of the two exam grades are possible? b) List all possible samples of size two and compute the sum and mean of each. c) Find the mean of the sample means and compare it to the population mean. d) As the student, do you think this is a good arrangement? Explain.
The marginal value schedule for Moe and the marginal cost schedule for Larry for apples are shown below. Find a single price that all mutually preferred trades can occur. What are the gains from trade?
Prove the following: if a matching is efficient, then there exists a tie-breaking rule such that the matching is efficient (with respect to the strict preferences generated by the tie-breaking rule)
What are the financial markets and what purposes do they serve? What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit ..
The Fed is concerned that this overheated economy will put pressure on prices and lead to a too high level of inflation. For this reason the Fed wants to engage in contradictory monetary policy, reducing AD, and so output, thereby increasing unemploy..
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Fi..
ABC Company purchases a machine for $40,000, keeps it for six years and sells it for $5,000. During the time the machine was used by the company, O&M cost totaled $5,000 the first year, $6,000 the second year, $8,000 the third year, $9,500 the fourth..
Suppose that the Canadian personal income tax system became a flat tax system in which all tax payers paid a certain percentage of their income as tax. There are no exemptions or deductions. In what way(s) could this flat tax be more regressive? In w..
Boeing estimates the elasticity of demand for new commercial jets is –1.25. Explain why the following statements are either true or false (i.e., state whether true or false and explain why.) “The price effect dominates the quantity effect.” “A 4 perc..
For the next seven questions, suppose a per unit excise tax of $80 per laptop is levied on the consumers.
In Lookout, CA there are three car owners, one car thief, and an insurance company. Every year, one, and only one, car gets stolen with equal chance. The insurer offers a $12,000 policy at a $5,000 premium. What are the chances of turning negative pr..
Sage has $80 to spend this month on CDs and/or DVDs. A CD costs $10 and a DVD costs $20. Draw Sage’s budget constraint (or budget line), with the number of CDs purchased on the vertical axis. What is the opportunity cost of the second DVD?
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