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An investor calls with a stock tip. He believes that if the economy remains? strong, the investment will result in a profit of 40,000. If the economy grows at a moderate? pace, the investment will result in a profit of ?10,000. ?However, if the economy goes into? recession, the investment will result in a loss of 40,000. You contact an economist who believes there is a 30?% probability the economy will remain? strong, a 60?% probability the economy will grow at a moderate? pace, and a 10?% probability the economy will slip into recession. What is the expected profit from this? investment?
The experiment must be run in blocks, with no more than four test runs per block. Up to 20 blocks can be used in the experiment.
Discuss one (1) recent price change that you have noticed while visiting your local supermarket. Determine whether or not the price change that you identified was a result of a change in either supply or demand.
What is meant by the balance-of-payments? Make sure to illustrate your understanding of the concept by providing a thorough explanation with an example
Runway construction at the local airport is expected to cost $35M. The runway will require maintenance costing $200K per year. At the end of each 6-year period
Why is the demand for labor more elastic in the long run? The skills required for gold miners and coal miners are very similar. Suppose the price of coal declines --- what is the expected impact of thsi change on the labor supply curve for gold miner..
Suppose that government imposes a $5 excise tax on each case of beer. Determine the equilibrium price and quantity before and after the tax. How much tax revenue does the government receive? What is the consumer’s tax burden? The producer’s burden?
Where within the business cycle was the United States operating in October of 1929? Briefly compare and contrast the period of 1929 - 1932 with what has taken place in the United States over the past 4 years. While you may feel what happened in 1929 ..
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
Mary,Janet and Samantha chose each other for a group project since they new that they were all high achievers. Once the project rolled around however, their group actually did more poorly than the group where all the members knew that others were sla..
Suppose that the aggregate supply function for watermelons is S(P) = 5P and the aggregate demandfunction is D(P) = 200 − 5P. Suppose that the market for watermelons is perfectly competitive. What are the equilibrium price and quantity of watermelons?
The Hanover Manufacturing Company believes that the demand curve for its product is. Evaluate the wisdom of the firm's pricing policy. A marketing specialist says that the pricing elasticity of demand for the firm's product is - 1.0. is this correct?
Provide examples on how the availability of close substitutes affects price elasticity of demand for a good or service.
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